Why Davis-Stirling Matters to Every California HOA Board
The Davis-Stirling Common Interest Development Act is the foundational legal framework governing nearly all HOAs, condominiums, and planned developments in California. Unlike the governing documents your association adopted at formation, Davis-Stirling is state law — and boards don't get to opt out of it. Recent legislative sessions have produced meaningful amendments that every California board member should understand.
This guide focuses on the practical implications rather than the technical legal language. For specific legal advice regarding your association, always consult with a licensed California HOA attorney.
Key Changes to Election Procedures
Election integrity has been a recurring legislative priority, and recent amendments have tightened requirements significantly. The most important changes include:
- Inspector of Elections: Associations must appoint an independent third-party inspector of elections. A fellow board member or someone with a direct interest in the election outcome no longer qualifies.
- Secret Ballot Requirements: All director elections must use a secret ballot process with double-envelope procedures. The outer envelope collects voter identification; the inner secret ballot is separated before counting.
- Candidate Statements: Associations must provide candidates a reasonable opportunity to submit candidate statements to be distributed with election materials, and cannot charge for reasonable statement lengths.
- Electronic Voting: Boards may now offer electronic voting options, but only as a supplement to — not a replacement for — paper secret ballots, and only with member consent.
Associations that conduct elections without following these procedures risk having results invalidated. Several California courts have voided HOA elections on procedural grounds in recent years, resulting in costly re-runs and legal fees.
Financial Disclosure Requirements
The annual disclosure package — commonly called the "Annual Policy Statement" — now has expanded requirements. Boards must distribute this package to all members within 30–60 days before the start of the fiscal year and must include:
- A pro forma operating budget for the upcoming year
- A summary of the association's reserves, including the reserve funding plan and percent funded status
- The association's collection policy for delinquent assessments
- A statement of any pending litigation
- Director and officer insurance information
- Any outstanding loans or lines of credit
Recent amendments have also strengthened requirements around reserve fund disclosures, requiring boards to explicitly state the percentage funded and the estimated remaining useful life of major components.
Member Communication Rights
Homeowners now have expanded rights to address the board. The law requires associations to allow a "reasonable" open forum period at each board meeting, and recent guidance has clarified that this includes regular board meetings, not just special meetings or annual meetings.
Electronic communication rules have also been updated. Associations may now send required legal notices by email to members who have provided an email address and consented, with some exceptions for the most legally significant notices. This can significantly reduce printing and mailing costs for large communities.
Executive Session Limitations
Davis-Stirling has always limited the topics boards may discuss in closed executive session. Recent amendments have added clarity and some restrictions. Boards may only convene in executive session to discuss:
- Pending litigation
- Member discipline
- Personnel matters
- Contract negotiations
- Payment plan discussions with delinquent members
Boards that use executive session to avoid public discussion of controversial policy decisions are in violation of the statute and expose themselves and the association to legal challenges.
Practical Steps for Your Board
Given these changes, here's what boards should do in the near term:
- Review your election procedures against current law before scheduling your next election — ideally with an HOA attorney review.
- Update your annual disclosure package template to include all newly required items.
- Confirm that your inspector of elections appointment meets the independence requirements.
- Collect email consent from members who prefer electronic notices to reduce distribution costs.
- Brief all board members on the executive session limitations to avoid inadvertent violations.
Staying current with Davis-Stirling amendments is an ongoing obligation, not a one-time task. Consider signing up for California HOA legal update newsletters or establishing an annual review of your procedures with legal counsel. The cost of prevention is always less than the cost of litigation.