Definition: Davis-Stirling Act
The Davis-Stirling Act is the largest collection of California laws regulating HOA associations. Other laws affecting homeowner associations include the Business & Professions Code, Civil Code, Code of Regulations, Corporations Code, Government Code, Health & Safety Code, Penal code, Tax Code, and the Vehicle Code.
A key point: Managers are supposed to know and advise the board on laws which impact association governance, and update it on new legislation each year. That hasn't always happened. When there are legal questions or special concerns, a board can seek advice from the Association's attorney. To understand governance and engage in effective discussion or debate, a director needs to study these laws and internalize those which affect daily operations and enforcement. Unnecessary hearings and meetings resulting from not following Davis-Stirling or other State laws can cost homeowners real money and higher dues through staff salaries and consultant fees.
* Credit to davis-stirling.com
The California Courts of Appeal have explained the quasi-governmental nature of the HOA:
“ Indeed, the homeowners associations function almost 'as a second municipal government, regulating many aspects of [the homeowners'] daily lives.' Upon analysis of the association's functions, one clearly sees the association as a quasi-government entity paralleling in almost every case the powers, duties, and responsibilities of a municipal government. As a 'mini-government,' the association provides to its members, in almost every case, utility services, road maintenance, street and common area lighting, and refuse removal. In many cases, it also provides security services and various forms of communication within the community. There is, moreover, a clear analogy to the municipal police and public safety functions...." In short, homeowners associations, via their enforcement of the CC&R's, provide many beneficial and desirable services that permit a common interest development to flourish. ”
* Credit to: California Homeowners Association, Inc.
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