January 31, 2023 Legislative Update
California’s Civil Code §4739 is a law that invalidates any association governing document provision that prohibits the rental of a “portion” of any separate interest lot or unit (typically a room) as long as the owner also occupies a portion of that lot or unit. The law does clarify, however, that the association’s governing documents can restrict the room rental to a term of 30 days or less. This law can be difficult to understand, so let’s break it down into its essential components.
Civil Code §4739 invalidates restrictions in an association's governing documents that prohibit rentals of lots or units if the owner occupies a portion of that lot or unit unless the restriction is a 30-day or less minimum lease term. This means that HOAs can prohibit short-term rentals, such as Airbnb and VRBO listings which would rent the unit or lot or room within the unit or lot while the owner still occupies it, if they don’t require a minimum lease term longer than 30 days. This restriction must be specifically stated in an HOA's governing documents to be enforceable.
Even though this law allows room rentals when the owner occupies the lot or unit (subject to a 30-day minimum lease term if the HOA adopts one in their governing documents), it DOES NOT permit owners or residents to violate any other provisions in their HOA’s governing documents. For example, if noise restrictions are outlined in the HOA’s governing documents, they must still be followed even with this new law in effect. The same goes for parking regulations, pet regulations, landscaping requirements, etc. In other words, Civil Code §4739 does not excuse violations against other HOA rules and regulations. Board members and homeowners alike must still enforce these.
While California's new Civil Code §4739 can be confusing at first glance, understanding its implications is essential for HOA board members and homeowners alike. While this law clarifies that an owner can rent a portion of their unit or lot while the owner occupies the rest of the home, and the association cannot impose a minimum lease term that is longer than 30 days, it does not excuse violations against other provisions set out in an association's governing documents. This means associations can still mitigate potential community impacts by establishing rules related to these rentals through their rule-making processes - ensuring their communities remain safe and enjoyable places to live!
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Crummack Huseby Property Management, Inc., based in Lake Forest, California, manages diverse HOA’s and master-planned communities in Southern California. Through their collaborative and customized approach, they have added value to communities by working with HOAs, homebuilders, and land developers. Crummack Huseby’s personalized philosophy of community management has allowed them to successfully discover and develop one-of-a-kind programs for new and existing communities. They offer professional business planning, governance, community management, financial-only management, planning, and forecasting services for community associations throughout California. Founders Sandy Huseby and Margo Crummack each have more than 30 years of experience in Common Interest Development (CID) Management. Crummack Huseby is a certified AAMC® company, highlighting its focus and commitment to delivering total customer satisfaction. Crummack Huseby Property Management Inc. invites you to experience their custom-tailored service and opens the door for a mutually beneficial relationship with your community. Discover what sets them apart as they invest in understanding your unique needs to build an exceptional future together.
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