HOA Homefront – Time is almost up to remove illegal rental restrictions

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HOA Homefront – Time is almost up to remove illegal rental restrictions
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The first version of Civil Code Section 4741, banning 'unreasonable” rental restrictions, became law in 2021, and also originally required HOAs to amend their governing documents to remove such provisions in 2021.

The first version of Civil Code Section 4741, banning “unreasonable” rental restrictions, became law in 2021, and also originally required HOAs to amend their governing documents to remove such provisions in 2021. The most common restrictions clearly violating that statute are rental caps lower than 25% and required periods of time after purchasing to being renting .

However, the California Legislature fixed this problem by amending Section 4741, extending the deadline for CC&Rs correction to July 1. More importantly, the law opens a six-month window, from Jan. 1 to July 1, in which HOA boards may without a membership vote amend CC&Rs solely to remove restrictions violating the statute.

Some HOAs may need to enlarge rental caps which are lower than 25%. Others may need to remove rental waiting periods. Still others may need to remove CC&R rental restrictions which appear to be “unreasonable” .The 28-day advance notice requirement means, as a practical matter, that the last day to make a general announcement of such a proposed amendment would be June 3 , 2022, for a board meeting on July 1, 2022.

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