AMENDED IN SENATE AUGUST 19, 2026

AMENDED IN SENATE AUGUST 4, 2026

AMENDED IN ASSEMBLY JANUARY 15, 2026

AMENDED IN ASSEMBLY JANUARY 5, 2026

AMENDED IN ASSEMBLY MARCH 24, 2025

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

94

Introduced by Assembly Member Patterson

(Coauthor: Assembly Member DeMaio)

February 21, 2025

An act to amend Sections 4360, 4910, 4935, 4950, 5100, 5120, 5205, and 5300 of, and to add Section 4941 to, the Civil Code, relating to common interest developments.

Vote: majority   Appropriation: no   Fiscal committee: no   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law, the Davis-Stirling Common Interest Development Act, governs the management and operation of common interest developments by an association. Existing law requires the board of an association to provide general notice of a proposed rule change at least 28 days before making the rule change, in accordance with certain procedures. Existing law, however, permits the board to make an emergency rule change if it determines that the change is required to address an imminent threat to public health or safety, or an imminent risk of substantial economic loss to the association, as prescribed.

This bill would make nonsubstantive changes to that provision.

Existing law, the Common Interest Development Open Meeting Act, prohibits the board of a common interest development from taking action on any item of business outside of a board meeting. Existing law also prohibits the board from conducting a meeting via a series of electronic transmissions, except in specified emergency circumstances.

This bill would prohibit a majority of the directors of the board, outside an authorized meeting, from using a series of communications of any kind, directly or through intermediaries, to discuss, deliberate, or take action on any item of business within the board’s subject matter jurisdiction, except in an emergency. The bill would also exempt from this prohibition certain informational and ministerial communications.

Existing law authorizes the board to adjourn to, or meet solely in, executive session to consider litigation and other specified matters. Existing law requires any matter discussed in executive session to be generally noted in the minutes of the immediately following meeting that is open to the entire membership.

This bill would require discussions regarding ongoing litigation to have the case name, case number, and name of the court included as part of the executive session meeting minutes.

This bill would require, if open session meetings of the board are electronically recorded using audio, or audio and video, that the recordings be considered a record of the association and be made available to members on the same basis as written meeting minutes. The bill would exempt a recording used solely for the purpose of creating meeting minutes and would authorize that the recording be deleted 12 months after the meeting minutes are completed. The bill, for meetings that are being recorded, would require notice to be given at the beginning of every open session of the board that the meeting is being recorded.

Existing law requires the minutes, minutes proposed for adoption that are marked to indicate draft status, or a summary of the minutes of a board meeting, other than an executive session, to be available to members within 30 days of the meeting and distributed to a member upon request and upon reimbursement of the association’s cost for making that distribution.

This bill would prohibit the imposition of a charge for minutes that are distributed electronically. The bill would allow minutes posted on the association website to meet minute distribution requirements. The bill would require the minutes, or proposed minutes, to include specified information, including the date and time of the meeting. The bill would require an association to make the minutes available to a member who requests a physical copy of the minutes.

Existing law requires an association to distribute an annual budget report 30 to 90 days before the end of its fiscal year that contains specified information.

This bill would require the annual budget report to also include a statement listing any active litigation in which the association is named as a party, as specified.

The people of the State of California do enact as follows:

SECTION 1.

This act shall be known, and may be cited, as the Homeowner Association Accountability and Transparency Act of 2026.

SEC. 2.

Section 4360 of the Civil Code is amended to read:

4360.

(a) The board shall provide general notice pursuant to Section 4045 of a proposed rule change at least 28 days before making the rule change. The notice shall include the text of the proposed rule change and a description of the purpose and effect of the proposed rule change. Notice is not required under this subdivision if the board determines that an immediate rule change is necessary to address an imminent threat to public health or safety or imminent risk of substantial economic loss to the association.

(b) A decision on a proposed rule change shall be made at a board meeting, after consideration of any comments made by association members.

(c) As soon as possible after making a rule change, but not more than 15 days after making the rule change, the board shall deliver general notice pursuant to Section 4045 of the rule change.

(d) If the board determines that an immediate rule change is required to address an imminent threat to public health or safety, or an imminent risk of substantial economic loss to the association, it may make an emergency rule change, and no notice is required, as specified in subdivision (a). An emergency rule change is effective for 120 days, unless the rule change provides for a shorter effective period. A rule change made under this subdivision may not be readopted under this subdivision.

(e) If an emergency rule change is made under subdivision (d), the general notice about the rule change shall include the text of the rule change, a description of the purpose and effect of the rule change, and the date when the rule change will expire.

SEC. 3.

Section 4910 of the Civil Code is amended to read:

4910.

(a) The board shall not take action on any item of business outside of a board meeting.

(b) (1) Notwithstanding Section 7211 of the Corporations Code, the board shall not conduct a meeting via a series of electronic transmissions, including, but not limited to, electronic mail, except as specified in paragraph (2).

(2) Electronic transmissions may be used as a method of conducting an emergency board meeting if all directors, individually or collectively, consent in writing to that action, and if the written consent or consents are filed with the minutes of the board meeting. These written consents may be transmitted electronically.

(c) (1) A majority of the directors shall not, outside a meeting authorized by this article, use a series of communications to deliberate or act on any item of business within the authority of the board, except in an emergency. Informational or ministerial communications that do not solicit responses, do not involve discussion among a majority of directors, and do not result in board action are not prohibited by this subdivision.

SEC. 4.

Section 4935 of the Civil Code is amended to read:

4935.

(a) The board may adjourn to, or meet solely in, executive session to consider litigation, matters relating to the formation of contracts with third parties, member discipline, personnel matters, or to meet with a member, upon the member’s request, regarding the member’s payment of assessments, as specified in Section 5665.

(b) The board shall adjourn to, or meet solely in, executive session to discuss member discipline, if requested by the member who is the subject of the discussion. That member shall be entitled to attend the executive session.

(c) The board shall adjourn to, or meet solely in, executive session to discuss a payment plan pursuant to Section 5665.

(d) The board shall adjourn to, or meet solely in, executive session to decide whether to foreclose on a lien pursuant to subdivision (b) of Section 5705.

(e) Any matter discussed in executive session shall be generally noted in the minutes of the immediately following meeting that is open to the entire membership. Discussions regarding ongoing litigation shall have the case name, case number, and name of the court included as part of the executive session meeting minutes.

SEC. 5.

Section 4941 is added to the Civil Code, to read:

4941.

(a) (1) If open session meetings of the board are electronically recorded using audio, or audio and video, the recordings shall be considered a record of the association and shall be made available to members on the same basis as written meeting minutes.

(b) For meetings that are being recorded, notice shall be given at the beginning of every open session of the board that the meeting is being recorded.

SEC. 6.

Section 4950 of the Civil Code is amended to read:

4950.

(a) The minutes, minutes proposed for adoption that are marked to indicate draft status, or a summary of the minutes, of any board meeting, other than an executive session, shall be available to members within 30 days of the meeting. The minutes, proposed minutes, or summary minutes shall be distributed to any member upon request and upon reimbursement of the association’s costs for making that distribution. There shall be no charge for minutes that are distributed electronically. Posting the minutes on the association’s website satisfies this requirement, and members shall be directed to the association’s website to obtain a copy. If a member requests a physical copy of the minutes, the association shall make the minutes available pursuant to Section 5205. An association is not obligated to have or continue to maintain an association internet website.

(b) The minutes, or proposed minutes, shall include, but not be limited to, all of the following:

(1) The date of the meeting.

(2) The time of the meeting.

(3) The location of the meeting.

(4) The type of meeting, including, but not limited to, regular, special, emergency, executive, or committee.

(5) Whether notice and an agenda of the meeting was given to the membership.

(6) The names of the directors present.

(7) The names of absent directors.

(8) Whether members are also present, and names and titles of any guest speakers.

(c) The annual policy statement, prepared pursuant to Section 5310, shall inform the members of their right to obtain copies of board meeting minutes and of how and where to do so.

SEC. 8.SEC. 7.

Section 5120 of the Civil Code is amended to read:

5120.

(a) All votes shall be counted and tabulated by the inspector or inspectors of elections, or the designee of the inspector or inspectors of elections, in public at a properly noticed open meeting of the board or members. Any candidate or other member of the association may witness the counting and tabulation of the votes. A person, including a member of the association or an employee of the management company, shall not open or otherwise review any ballot before the time and place at which the ballots are counted and tabulated. The inspector or inspectors of elections, or the designee of the inspector or inspectors of elections, may verify the member’s information and signature on the outer envelope prior to the meeting at which ballots are tabulated. Once a secret ballot is received by the inspector or inspectors of elections, it shall be irrevocable.

(b) The tabulated results of the election shall be promptly reported to the board and shall be recorded in the minutes of the next meeting of the board and shall be available for review by members of the association. For the election results for director positions, the meeting minutes shall state the term for each elected director.

(c) Within 15 days of the election, the association shall give general notice pursuant to Section 4045 of the tabulated results of the election.

(d) A person, including a member of the association or an employee of the management company, shall not open or otherwise review any tally sheet of votes cast by electronic secret ballots before the time and place at which the ballots are counted and tabulated.

SEC. 9.SEC. 8.

Section 5205 of the Civil Code is amended to read:

5205.

(a) The association shall make available association records for the time periods and within the timeframes provided in Section 5210 for inspection and copying by a member of the association, or the member’s designated representative.

(b) A member of the association may designate another person to inspect and copy the specified association records on the member’s behalf. The member shall make this designation in writing.

(c) The association shall make the specified association records available for inspection and copying in the association’s business office within the common interest development.

(d) If the association does not have a business office within the development, the association shall make the specified association records available for inspection and copying at a place agreed to by the requesting member and the association.

(e) If the association and the requesting member cannot agree upon a place for inspection and copying pursuant to subdivision (d) or if the requesting member submits a written request directly to the association for copies of specifically identified records, the association may satisfy the requirement to make the association records available for inspection and copying by delivering copies of the specifically identified records to the member by individual delivery pursuant to Section 4040 within the timeframes set forth in subdivision (b) of Section 5210.

(f) The association may bill the requesting member only for the direct and actual cost of copying and mailing requested documents. The association shall inform the member of the amount of the copying and mailing costs, and the member shall agree to pay those costs, before copying and sending the requested documents. There shall be no charge for the emailing of documents already in electronic format and that do not require any redacting.

(g) In addition to the direct and actual costs of copying and mailing documents, the association may bill the requesting member an amount not in excess of ten dollars ($10) per hour, and not to exceed two hundred dollars ($200) total per written request, for the time actually and reasonably involved in redacting an enhanced association record. If the enhanced association record includes a reimbursement request, the person submitting the reimbursement request shall be solely responsible for removing all personal identification information from the request. The association shall inform the member of the estimated costs, and the member shall agree to pay those costs, before retrieving the requested documents.

(h) Requesting parties shall have the option of receiving specifically identified records by electronic transmission or machine-readable storage media as long as those records can be transmitted in a redacted format that does not allow the records to be altered. The cost of duplication shall be limited to the direct cost of producing the copy of a record in that electronic format. The association may deliver specifically identified records by electronic transmission or machine-readable storage media as long as those records can be transmitted in a redacted format that prevents the records from being altered.

SEC. 10.SEC. 9.

Section 5300 of the Civil Code is amended to read:

5300.

(a) Notwithstanding a contrary provision in the governing documents, an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year.

(b) Unless the governing documents impose more stringent standards, the annual budget report shall include all of the following information:

(1) A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis.

(2) A summary of the association’s reserves, prepared pursuant to Section 5565.

(3) A summary of the reserve funding plan adopted by the board, as specified in paragraph (5) of subdivision (b) of Section 5550. The summary shall include notice to members that the full reserve study plan is available upon request, and the association shall provide the full reserve plan to any member upon request.

(4) A statement as to whether the board has determined to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement.

(5) A statement as to whether the board, consistent with the reserve funding plan adopted pursuant to Section 5560, has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves therefor. If so, the statement shall also set out the estimated amount, commencement date, and duration of the assessment.

(6) A statement as to the mechanism or mechanisms by which the board will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms.

(7) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components that the association is obligated to maintain. The statement shall include, but need not be limited to, reserve calculations made using the formula described in paragraph (4) of subdivision (b) of Section 5570, and may not assume a rate of return on cash reserves in excess of 2 percent above the discount rate published by the Federal Reserve Bank of San Francisco at the time the calculation was made.

(8) A statement as to whether the association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired.

(9) A summary of the association’s property, general liability, earthquake, flood, and fidelity insurance policies. For each policy, the summary shall include the name of the insurer, the type of insurance, the policy limit, and the amount of the deductible, if any. To the extent that any of the required information is specified in the insurance policy declaration page, the association may meet its obligation to disclose that information by making copies of that page and distributing it with the annual budget report. The summary distributed pursuant to this paragraph shall contain, in at least 10-point boldface type, the following statement:

“This summary of the association’s policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the association’s insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the association’s policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.”

(10) When the common interest development is a condominium project, a statement describing the status of the common interest development as a Federal Housing Administration (FHA)-approved condominium project pursuant to FHA guidelines, including whether the common interest development is an FHA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:

“Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owner’s ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.

This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.”

(11) When the common interest development is a condominium project, a statement describing the status of the common interest development as a federal Department of Veterans Affairs (VA)-approved condominium project pursuant to VA guidelines, including whether the common interest development is a VA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:

“Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owner’s ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.

This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.”

(12) A copy of the completed “Charges For Documents Provided” disclosure identified in Section 4528. For purposes of this section, “completed” means that the “Fee for Document” section of the form individually identifies the costs associated with providing each document listed on the form.

(13) (A) A statement listing any active litigation in which the association is named as a party, including the name of the court and the case number of the litigation.

(B) For purposes of this section, “active litigation” means any civil action or proceeding that has been commenced, currently pending in any state or federal court, and has not yet been finally resolved, closed, or dismissed. “Litigation” does not include any small claims actions, superior court actions seeking judicial foreclosure, actions to obtain a monetary judgment regarding any debt of a member, actions by which an association is seeking to enforce the governing documents against a member, or any action which by disclosing its existence would pose a threat to the health and safety of any individual.

(c) The annual budget report shall be made available to the members pursuant to Section 5320.

(d) The summary of the association’s reserves disclosed pursuant to paragraph (2) of subdivision (b) shall not be admissible in evidence to show improper financial management of an association, provided that other relevant and competent evidence of the financial condition of the association is not made inadmissible by this provision.

(e) The Assessment and Reserve Funding Disclosure Summary form, prepared pursuant to Section 5570, shall accompany each annual budget report or summary of the annual budget report that is delivered pursuant to this article.