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The New Davis-Stirling Act And Your Governing Documents

Life will become a little easier for managers and directors of commercial and industrial common interest developments after January 1, 2014. After that date a new law, the Commercial and Industrial Common Interest Development Act, will replace the Davis-Stirling Common Interest Development Act as the law applicable to common interest developments which are limited to commercial or industrial uses by law or by recorded CC&Rs.

The new law still contains some of the same provisions as the Davis-Stirling Act, but some of the most burdensome provisions of Davis-Stirling have been eliminated. For instance, Section1363.03 of Davis-Stirling (Sections 5100 – 5145 of the 2014 Davis-Stirling Act), which mandates how most association member votes must be conducted, has been eliminated entirely. Section 1365.2 of Davis-Stirling (Sections 5200 – 5240 of the 2014 Act), relating to the types of records which must be provided to members upon demand has also been eliminated, as have the provisions requiring mandatory dispute resolution (“meet and confer”, mediation or arbitration) in certain instances. Provisions relating to collection of delinquent assessments have been streamlined.

The California Law Revision Commission, which prepared the initial draft of the new law, felt that many sections of Davis-Stirling were intended for the protection of unsophisticated homeowners who knew little or nothing about the operation of residential homeowner associations. These provisions, which are in the nature of consumer protection laws, are generally not necessary for commercial and industrial developments, where most of the owners are business persons with access to legal counsel, accountants and other consultants.

We have prepared a booklet containing all of the provisions of the Commercial and Industrial Common Interest Development Act with a conversion table showing the relationship of each provision of the new law to the Davis-Stirling Act. This booklet is available upon request.

Mary Catherine Garcia, Esq.

Mary Catherine Garcia, Esq.

Mary Catherine Garcia, Esq.