California Senate Bill (SB) 900 introduces significant changes to how Homeowners Associations (HOAs) handle maintenance, repairs, and funding related to utility interruptions. This new legislation amends Civil Code section 5550 and expands Civil Code section 4775, redefining the responsibilities and financial options for HOAs.
Key Updates in SB 900
HOA Responsibilities for Utility Interruptions
Under SB 900, HOAs are now responsible for any necessary maintenance, repairs, or replacements stemming from interruptions in utility services—including gas, heat, water, or electricity—that originate from the common area. Unless stated otherwise in the governing documents, HOAs must:
- Begin Repairs Within 14 Days: Maintenance or repair work must start no later than 14 days after the utility interruption occurs.
Emergency Assessments and Loans
To comply with these requirements, the law allows HOAs to:
- Impose Emergency Assessments: HOAs can impose emergency assessments without requiring a membership vote if their reserve account lacks sufficient funds.
- Secure Loans: Associations may also secure loans for utility repairs without member approval to ensure prompt action.
Reserve Study Requirements
SB 900 mandates that utility lines be explicitly listed as line-item components in future HOA reserve studies. This requirement ensures proper financial planning for maintenance and replacement of utility infrastructure.
Why SB 900 Matters
SB 900 aims to improve accountability and transparency in how HOAs manage critical infrastructure. By enforcing repair timelines and providing mechanisms to secure funding, this law ensures that homeowners face minimal disruption during utility outages.
Ask an HOA Law Attorney Today
Navigating HOA laws like SB 900 can be complex. If your HOA needs guidance on compliance, we’re here to help. Call Hudack Law toll-free at (877) 314-4309 or visit our website to schedule a consultation. We proudly serve California, Utah, and Arizona.