NEW HOA RESPONSIBILITY FOR REPAIRING UTILITIES (December 2024)

Starting January 1, 2025, new legislation (SB 900) will alter the default (i.e., if not addressed in the CC&Rs) repair and replacement responsibilities for utilities (gas, heat, water, and electricity).  Unless otherwise provided in the CC&Rs, or unless maintained or repaired/replaced by the utility provider, the association is responsible for repairs/replacements necessary to restore interrupted utility services that begin in the common area, even if they extend into a separate interest or exclusive use common area.

The Board must commence the process to make the repairs within 14 days of the interruption of services.  If the Board is required to vote to initiate the repairs/replacements, voting may be performed by electronic means, including, but not limited to, email.  If the Board is unable to meet a quorum within the 14 days, then at the next duly noticed Board meeting following the 14th day, the total number of Board members at that meeting are deemed to constitute a quorum, but only for the purpose of the vote to commence the repair process.  The meeting notice must indicate the use of a reduced quorum.

If there are insufficient reserve funds available to cover the costs of repairs/replacements, the association may, after the Board passes a statutorily prescribed resolution, obtain competitive financing to pay for the costs without a vote of the members and levy an emergency assessment for the repayment of the loan.  The resolution must be distributed to the members with the notice of the emergency assessment and any other required notices.

These requirements do not apply if the association is in an area affected by one or more of the following, which materially affect the association's ability to perform its responsibilities: A state of disaster or emergency declared by the federal government and/or a state of emergency proclaimed by the Governor or a local governing body or official.