California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 12 - Subdivisions › Section 2792.8 - Governing Instruments for Common Interest Subdivisions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Governing instruments for the ownership
				and management of subdivisions enumerated in Section
				11004.5 of the Code (common-
				interest subdivisions) including the Covenants, Conditions and Restrictions
				(CC&Rs), Articles of Incorporation (Articles) and Bylaws shall ordinarily
				provide for, but need not be limited to, the following:
(1) Creation of an organization (hereafter
				Association) of subdivision interest owners;
(2) A description of the common interests of
				the subdivision owners or lessees;
(3) Transfer of title and/or control of
				common interests or of mutual and reciprocal rights of use to the owners in
				common or to the Association;
(4)
				Procedures for calculating and collecting regular assessments from owners to
				defray expenses attributable to the ownership, operation or furnishing of
				common interests or to the enjoyment of mutual and reciprocal rights of
				use;
(5) Procedures for
				establishing and collecting special assessments for capital improvements or for
				other purposes;
(6) Liens upon
				privately-owned subdivision interests for assessments levied pursuant to the
				CC&Rs and foreclosure thereof for nonpayment;
(7) Policies and Procedures relating to the
				disciplining of members for failure to comply with provisions of the governing
				instruments;
(8) Creation of a
				governing body for the Association;
(9) Procedures for the election and removal
				of governing body members and officers of the Association;
(10) Enumeration of the powers and duties of
				the governing body and the officers and of the limitations upon the authority
				of the governing body to act without the prior approval of members representing
				a majority of the voting power of the Association;
(11) Allocation of voting rights to
				Association members;
(12)
				Preparation of the budgets and financial statements of the Association and for
				distribution to the Association members;
(13) Regular and special meetings of
				Association members with notice requirements;
(14) Regular meetings of the governing body
				with provision for notice to Association members;
(15) Quorum requirements for meetings of
				members of the Association and of the governing body;
(16) Procedures for proxy voting at members'
				meetings;
(17) Policies and
				procedures governing the inspection of books and records of the Association by
				members;
(18) Amendment procedures
				for those provisions of the governing instruments which relate to the
				ownership, management and control of the Association and/or the common
				interests;
(19) Prohibitions
				against or restrictions upon the severability of a separately-owned portion
				from the common interest portion of a subdivision interest;
(20) Conditions upon which a partition of a
				condominium project may be had pursuant to Section
				1359 of the
				Civil Code;
(21) Action to be taken
				and procedures to be followed in the event of condemnation, destruction or
				extensive damage to the subdivision interests, including provisions respecting
				the use and disposition of insurance proceeds or damages payable to the
				Association or to a trustee on behalf of owners on account of condemnation,
				destruction or damage;
(22)
				Annexation of additional land to the existing development where
				appropriate;
(23) Architectural
				and/or design control;
(24) Special
				provisions for enforcement of financial arrangements by the subdivider to
				secure performance of his commitment to complete common-area
				improvements;
(25) Granting of
				easements or use rights affecting the common areas;
(26) Special provisions authorizing the
				governing body, subject to compliance with Section
				1354 of the
				Civil Code, to institute, defend, settle or intervene on behalf of the
				Association in litigation, arbitration, mediation, or administrative
				proceedings in matters pertaining to (A) enforcement of the governing
				instruments, (B) damage to the common areas, (C) damage to the separate
				interests which the Association is obligated to maintain or repair, or (D)
				damage to the separate interests which arises out of, or is integrally related
				to, damage to the common areas or separate interests that the association is
				obligated to maintain or repair.