QUESTION. I read with interest your recent newsletter that if bylaws have a term limit provision, recalled board members could not immediately run again if termed out. Two different law offices informed us that state law prohibits term limits for HOAs. Is this correct? -Chris
ANSWER. It used to be true. The two law firms were probably thinking of the dumpster fire legislation sponsored by Marjorie Murray’s Center for California Homeowner Association Law (CCHAL) that went into effect in 2020. The poorly drafted legislation voided term limits in every association in California. It also increased the cost and length of elections, and imposed a greater burden on small associations and senior communities. It created such an outcry of protest that the right to adopt term limits was reinstated in 2022. (Civ. Code § 5103(d)(2).)
RECOMMENDATION: Associations should be careful not to implement strict term limits that force directors off the board even when no one else is willing to serve. Term limitations should only take effect when there are volunteers willing to serve on the board. Otherwise, associations could find themselves without a board of directors
DISCLAIMER. The Davis-Stirling.com Newsletter by ADAMS | STIRLING PLC provides commentary only, not legal advice. For legal advice, you’ll need to hire legal counsel. You can hire ADAMS | STIRLING PLC; Keep in mind they are considered corporate counsel to associations only.