The July 1, 2022 deadline to amend governing documents for compliance with AB 3182 (regarding rental restrictions) is quickly approaching.
As you may know, AB 1584 (Civil Code § 4741) allows a board to amend governing documents to be in compliance with the new rental restriction law by either deleting or restating the prohibited restriction without a membership vote, provided certain notice requirements are met. A board must provide general notice of the amendment at least 28 days before approving the amendment. Boards should take action now as necessary to comply with the new law!
RENTAL RESTRICTIONS; AMENDMENTS TO THE
GOVERNING DOCUMENTS
Under AB 3182, any provisions in your governing documents which prohibit or “unreasonably restrict” renting will be considered void and unenforceable, with two (2) exceptions:
- Associations can prohibit short-term rentals of thirty (30) days or less;
- Associations can limit the total number of rental homes in the community to twenty-five percent (25%), but no less.
Failing to amend the governing documents to delete or restate the prohibited rental restriction by July 1, 2022 will expose the association to risk of incurring a $1,000.00 civil penalty, per challenge.
We recommend that boards immediately take action to begin bringing their associations into compliance with the new law if you have not done so already.