Makes an association responsible for repairs and replacements necessary to restore interrupted gas, heat, water, or electrical services that begin in the common area.
Even if the matter extends into another area, unless the utility service that failed is required to be maintained by a utility service provider or otherwise provided for.
Requires association’s board to commence process to make repairs within 14 days.
If there are insufficient funds in reserve to cover the cost of repairs, the bill would authorize an association to obtain competitive financing to commence repairs.
And then levy an emergency assessment to repay the loan, if certain conditions met.
If the board is unable to reach a quorum during the 14-day period, a limited reduced quorum required at next duly noticed board meeting to commence repair process.
The bill would also authorize directors of an association to vote by electronic means for purposes of initiating repairs or replacements pursuant to the bill’s provisions.
Exempts an association from general duty to repair, replace, and maintain the common area, if the association is in an area affected by a state of disaster or emergency.
Provides that, for purposes of visual inspection, the term major components includes gas, water, and electrical service the association is required to repair or replace.
Expands emergency situation to include an extraordinary expense necessary to operate, repair, or maintain the common interest development if threat is discovered.
Legislative History
On Jan. 3, 2024, bill introduced in the Senate; on May 20, 2024, bill passed Senate.
On May 21, 2024, bill introduced in Assembly; on Aug. 26, 2024, bill passed Assembly.
On Aug. 28, 2024, Assembly amendments concurred; on Sep. 4, 2024, bill enrolled.
Effectiveness
If enacted, bill SB 940 will become effective as of Jan. 1, 2025.
Sep. 2024 CAL LEG Governor Approval
On Sep. 19, 2024, CAL LEG reported governor approved, Ch. 288, Statutes of 2024
