Legal Question in Real Estate Law in California

Re: Must HOA seek legal review of adopted rules?

Not to my knowledge. But if they're stupid or unworkable, you have the right to lobby the HOA board, petition the board, run for a seat on the board and, when elected, rewrite them, or take them to court if they're egregious.

Re: Must HOA seek legal review of adopted rules?

Although they do not need attorney review, they are required to be circulated to the owners. Here's the info on rule adoptions and amendments.

"Operating Rules" are defined as any regulation adopted by the board of directors that applies to the management and operation of the association or the conduct of its business and affairs. Civil Code �1357.100 This includes pets, parking, use of the common areas, member discipline, architectural standards, election procedures, any schedule of monetary penalties, etc. Civil Code �1357.120(a)

Excluded are decisions relating to common area maintenance, a specific matter (as opposed to a general policy), assessment amounts, a nondiscretionary rule change required by law, or a rule that repeats existing law or the Association's Bylaws, CC&Rs or Articles of Incorporation. Civil Code �1357.120(b)

Enforceability. Civil Code �1357.110 An operating rule is enforceable if:

* in writing,

* within the board's authority,

* consistent with governing law and the associations governing documents,

* adopted in good faith, and

* reasonable

Notice of Proposed Change. At least 30 days before a vote on adopting or amending an operating rule, the board must mail a copy of the proposed change to the members, along with an explanation of their purpose and effect.

Adoption in Open Meeting. After the 30-day period, the board may adopt the rules at a duly noticed open meeting of the board, taking into consideration of any comments made by association members. Civil Code �1357.130

Notice of Adoption. Within 15 days of voting on the rules, the board must notify the membership of the results of the vote. Civil Code �1357.130

Member Veto of Rule Change. Members owning 5% or more of the separate interests may call a special meeting of the members to reverse a rule change. Civil Code �1357.140(a) The written request may not be delivered more than 30 days after the members of the association are notified of the rule change. Civil Code �1357.140(b) The board must give notice of a special meeting and send out ballots pursuant to Civil Code �1363.03. The rule change may be reversed by the affirmative vote of a majority of the votes represented and voting at a duly held meeting at which a quorum is present. Civil Code �1357.140(c)

Notice and Ballot. Notice of the meeting and ballot are sent by the board. The board must also notify members of the results of this vote within 15 days. If an operating rule is reversed, it cannot be re-adopted by the board for at least one year. However, the board may vote on other operating rules covering the same subject. Civil Code �1357.140(f)&(g)

Re: Must HOA seek legal review of adopted rules?

Attorney Cohen is correct - unless your governing documents require legal review, it is not necessary, just a good idea.

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