The California Legislature adopted a new law regarding leasing restrictions within common interest developments.  Senate Bill 150 will go into effect on January 1, 2012 and adds Civil Code Section 1360.2 to the Davis-Stirling Common Interest Development Act.

Beginning January 12, 2012, any new governing documents (e.g., CC&Rs, Bylaws or Rules and  Regulations) or any amendment to any of those documents that includes a prohibition on rental or leasing will not apply to anyone who purchased before the date the governing document and/or amendment was adopted or recorded unless that person consents to be bound.

What is considered a “prohibition” on rental or leasing?  Unfortunately, Civil Code Section 1360.2 does not answer this question.  This language may address any restriction on leasing or may only address certain types of provisions such as “rental ceilings” where only a certain percentage of residences (e.g. 30%) can be leased at any one time.

If your association is considering adopting any type of restriction on leasing and you want to ensure that all current and future owners are bound by that provision, you will need to adopt that change before January 1, 2012.  Be sure to act quickly – a vote of the members may be required!

If you are considering adopting a  leasing restriction, please contact me or Laurie Poole so that we may discuss the specific requirements for your association.