Just in time for the 2023 holidays, Legislators have a gift for members of homeowner associations in the form of State Assembly Bill 1458.

We will provide link to the full bill text below, but the key elements that benefit HOAs are that California rules for HOAs now provide relief for those HOAs that keep bumping into their own high quorum requirements and find  they are unable to modify or update their rules. AB1458 lays out a mechanism, which though a bit complex, makes it possible for these same HOAs to hold a second ballot -- this time with what is likely to be a much lower quorum requirement.

Some key things to keep in mind with AB1458:

• Utilizing the lower state-mandated quorum levels requires the ballot initiatve first go through the correct Inspector of Elections process and fail to reach the quorum levels required by the HOA's governing docs.
• There are specific minimum and maximum timelines for when a second ballot can be run. Full membership notification is required.
• The quorum requirement for this "second chance" ballot is 20% of the HOA membership.
• A voting member counts towards quorum if they are present at the meeting or by proxy, or have properly submitted a ballot.
• Note that these new rules apply specifically to quorum requirements and don't lower specific vote limits HOAs may have in their own bylaws pertains to specific actions.

So what's the downside? The only one we can see will be for those HOAs using an Inspector of Elections that charges extra for every additional mailer, or maybe even every stamp or envelope. If that's the case, those HOAs may want to budget for high election costs and some last minute add-on charges. 

Another option would be to use the HOA Election Team, because we HAVE NEVER charged extra to run a ballot a second time in order to meet quorum. Meeting quorum has always been part of our service guarantee. And now meeting that requirement just got a bit easier for all of us. Cheers to 2024!

For more information, check the Assembly Bill legislative page.