Beaumont Tashjian Law Blog

Wednesday, October 28, 2020

AB 3182 Checklist

As you likely know, Assembly Bill 3182 (“AB 3182”) recently passed and will go into effect January 1, 2021. Under AB 3182, any provisions of the governing documents which “unreasonably restrict” renting will be void and unenforceable, with limited exceptions. 

In light of the new law, we want your community to be prepared and have created an “AB 3182 Checklist” to assist you in evaluating the next steps to take.

 Review Governing Documents for Any Rental Restrictions.

 Determine Whether any Said Rental Restrictions Violate AB 3182:

o Rental Cap;
o Minimum Lease Term;
o Occupancy Requirements; or
o Any other provision that may potentially be deemed an “unreasonable” restriction on leasing.

 Decide Whether to Amend/Revise Governing Documents to: 

1. Comply with AB 3182; and/or 
2. Include New, Legally-Compliant Rental Restrictions.

 Prepare Amendment and Voting Documents (i.e., Secret Ballots, etc.).

 Prepare Revision(s) to Rules and Regulations (if applicable).

Again, it is critical that the Board act now to ensure your community is protected and liability is limited. Failure to amend your governing documents could result in current rental restrictions being invalidated (starting January 1, 2021) and monetary penalties imposed (starting December 31, 2021).

Please let us know how Beaumont Tashjian can be of assistance to your association. Please note, for a flat fixed fee, our office can perform the necessary review of your governing documents to determine if the association is in violation of AB 3182, and thereafter guide the Board through amending the governing documents, as needed.

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