This section says that the definitions provided in this article must be used to understand and interpret the act it relates to.
The definitions in this article govern the construction of this act.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This law section defines what an "annual budget report" is by referring to another section, specifically Section 5300.
“Annual budget report” means the report described in Section 5300.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This section simply defines what an 'annual policy statement' is by referring to a description provided in another section, specifically Section 5310.
“Annual policy statement” means the statement described in Section 5310.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This law defines an "association" as a nonprofit organization, which can be a corporation or unincorporated group, that is set up to manage a community where property ownership is shared or common, such as a condo or a homeowners' association.
“Association” means a nonprofit corporation or unincorporated association created for the purpose of managing a common interest development.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
The term 'Board' refers to the group of people who direct the operations of an association.
“Board” means the board of directors of the association.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This law defines what constitutes a 'board meeting' for an association. It can be a physical gathering where enough directors are present to make decisions, or a teleconference where directors connect using audio or video links from different places. For teleconferences, there must be a location specified for members to attend physically unless it's a private session. These meetings must ensure that all directors can hear each other and members who speak during the meeting.
“Board meeting” means either of the following:
(a)CA Civil Law Code § 4090(a) A congregation, at the same time and place, of a sufficient number of directors to establish a quorum of the board, to hear, discuss, or deliberate upon any item of business that is within the authority of the board.
(b)CA Civil Law Code § 4090(b) A teleconference, where a sufficient number of directors to establish a quorum of the board, in different locations, are connected by electronic means, through audio or video, or both. A teleconference meeting shall be conducted in a manner that protects the rights of members of the association and otherwise complies with the requirements of this act. Except for a meeting that
will be held solely in executive session or conducted under Section 4926 or 5450, the notice of the teleconference meeting shall identify at least one physical location so that members of the association may attend, and at least one director or a person designated by the board shall be present at that location. Participation by directors in a teleconference meeting constitutes presence at that meeting as long as all directors participating are able to hear one another, as well as members of the association speaking on matters before the board.
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(Amended by Stats. 2023, Ch. 203, Sec. 2. (AB 648) Effective January 1, 2024.)
This section defines 'common area' in a housing community. Generally, it's everything in the community that isn't a privately-owned part, and it could involve various ownership forms like full ownership, temporary rights, or others. However, in some planned communities, the common area might just be shared access rights connected to privately-owned parts.
(a)CA Civil Law Code § 4095(a) “Common area” means the entire common interest development except the separate interests therein. The estate in the common area may be a fee, a life estate, an estate for years, or any combination of the foregoing.
(b)CA Civil Law Code § 4095(b) Notwithstanding subdivision (a), in a planned development described in subdivision (b) of Section 4175, the common area may consist of mutual or reciprocal easement rights
appurtenant to the separate interests.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This law section explains what is meant by a "common interest development" in California. It includes four types: community apartment projects, condominium projects, planned developments, and stock cooperatives.
“Common interest development” means any of the following:
(a)CA Civil Law Code § 4100(a) A community apartment project.
(b)CA Civil Law Code § 4100(b) A condominium project.
(c)CA Civil Law Code § 4100(c) A planned development.
(d)CA Civil Law Code § 4100(d) A stock cooperative.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This section defines a 'community apartment project' as a type of housing where you share ownership of the land with others but have the exclusive rights to live in a specific apartment there.
“Community apartment project” means a development in which an undivided interest in land is coupled with the right of exclusive occupancy of any apartment located thereon.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This law defines what a 'community service organization or similar entity' is in the context of providing services to residents of a common interest development in California. It's a nonprofit organization that serves not only the residents but also the public, using community resources that are available to everyone. However, it doesn't include organizations that are solely set up to fundraise and donate to other tax-exempt nonprofits focused on providing housing or housing help.
(a)CA Civil Law Code § 4110(a) “Community service organization or similar entity” means a nonprofit entity, other than an association, that is organized to provide services to residents of the common interest development or to the public in addition to the residents, to the extent community common area or facilities are available to the public.
(b)CA Civil Law Code § 4110(b) “Community service organization or similar entity” does not include an entity
that has been organized solely to raise moneys and contribute to other nonprofit organizations that are qualified as tax exempt under Section 501(c)(3) of the Internal Revenue Code and that provide housing or housing assistance.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This section defines a 'condominium plan' as a plan that is detailed in another section, specifically Section 4285.
“Condominium plan” means a plan described in Section 4285.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This law explains what makes up a 'condominium project' in California. A condominium project is a type of real estate development with multiple individual condos. Each condo is made up of two parts: shared ownership in parts of the property (like common areas) and a private unit. The boundaries of each condo unit are specified on official maps or plans, and they might include air, earth, or fixtures without being directly connected to the ground. Sometimes, a condo owner might also own additional parts of the property beyond their unit.
(a)CA Civil Law Code § 4125(a) A “condominium project” means a real property development consisting of condominiums.
(b)CA Civil Law Code § 4125(b) A condominium consists of an undivided interest in common in a portion of real property coupled with a separate interest in space called a unit, the boundaries of which are described on a recorded final map, parcel map, or condominium plan in sufficient detail to locate all boundaries thereof. The area
within these boundaries may be filled with air, earth, water, or fixtures, or any combination thereof, and need not be physically attached to land except by easements for access and, if necessary, support. The description of the unit may refer to (1) boundaries described in the recorded final map, parcel map, or condominium plan, (2) physical boundaries, either in existence, or to be constructed, such as walls, floors, and ceilings of a structure or any portion thereof, (3) an entire structure containing one or more units, or (4) any combination thereof.
(c)CA Civil Law Code § 4125(c) The portion or portions of the real property held in undivided interest may be all of the real property, except for the separate interests, or may include a particular three-dimensional portion thereof, the boundaries of which are described on a recorded final map, parcel map, or condominium plan. The area within these boundaries may be filled with air, earth, water, or fixtures, or any
combination thereof, and need not be physically attached to land except by easements for access and, if necessary, support.
(d)CA Civil Law Code § 4125(d) An individual condominium within a condominium project may include, in addition, a separate interest in other portions of the real property.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This law explains who is considered a 'declarant' in a declaration. A declarant is either the person or group named in the declaration as such, or if no one is named, it’s the person or group who signed the original document or who inherits special rights or privileges from the original signer.
“Declarant” means the person or group of persons designated in the declaration as declarant, or if no declarant is designated, the person or group of persons who sign the original declaration or who succeed to special rights, preferences, or privileges designated in the declaration as belonging to the signator of the original declaration.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
In this context, a "Declaration" is any document, no matter what it's called, that includes specific details outlined in Sections 4250 and 4255.
“Declaration” means the document, however denominated, that contains the information required by Sections 4250 and 4255.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
In this section, 'Director' refers to a person who is a member of a board of directors.
“Director” means a natural person who serves on the board.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This California law defines "exclusive use common area" in a housing community, such as a condo. It refers to parts of the property's common areas that are designated for the use of specific owners and their units, but not all owners. This could include things like patios, balconies, or exterior doors that serve a single unit but are outside its official boundaries. Even telephone wiring that serves only one unit but runs outside can be an exclusive use area, which means that despite its location, it's meant just for that unit's use.
(a)CA Civil Law Code § 4145(a) “Exclusive use common area” means a portion of the common area designated by the declaration for the exclusive use of one or more, but fewer than all, of the owners of the separate interests and which is or will be appurtenant to the separate interest or interests.
(b)CA Civil Law Code § 4145(b) Unless the declaration otherwise provides, any shutters, awnings, window boxes, doorsteps, stoops, porches, balconies, patios,
exterior doors, doorframes, and hardware incident thereto, screens and windows or other fixtures designed to serve a single separate interest, but located outside the boundaries of the separate interest, are exclusive use common area allocated exclusively to that separate interest.
(c)CA Civil Law Code § 4145(c) Notwithstanding the provisions of the declaration, internal and external telephone wiring designed to serve a single separate interest, but located outside the boundaries of the separate interest, is exclusive use common area allocated exclusively to that separate interest.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
In this context, 'general notice' refers to how a document is delivered according to the rules set out in Section 4045.
“General notice” means the delivery of a document pursuant to Section 4045.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This law section defines 'governing documents' as the papers that explain how a homeowners' association or common interest development works. These include things like the declaration, bylaws, and any rules or articles of incorporation.
“Governing documents” means the declaration and any other documents, such as bylaws, operating rules, articles of incorporation, or articles of association, which govern the operation of the common interest development or association.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This law section defines 'individual notice' as the act of sending a document according to the rules outlined in another section, Section 4040.
“Individual notice” means the delivery of a document pursuant to Section 4040.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
In simple terms, an 'item of business' refers to any decision or action that the board can make, unless the board has officially given that responsibility to someone else, like an individual, a managing agent, an officer, or a small committee of the board.
“Item of business” means any action within the authority of the board, except those actions that the board has validly delegated to any other person or persons, managing agent, officer of the association, or committee of the board comprising less than a quorum of the board.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This law defines what a "managing agent" is in the context of a common interest development, like a condominium or homeowners' association. It clarifies that a managing agent is someone who manages the assets of such developments for payment. However, it specifies that this does not include banks or financial institutions doing their usual business or attorneys performing their legal duties.
(a)CA Civil Law Code § 4158(a) A “managing agent” is a person who, for compensation or in expectation of compensation, exercises control over the assets of a common interest development.
(b)CA Civil Law Code § 4158(b) A “managing agent” does not include any of the following:
(1)CA Civil Law Code § 4158(b)(1) A regulated financial institution operating within the normal course of its regulated business practice.
(2)CA Civil Law Code § 4158(b)(2) An attorney at law acting within the scope of the attorney’s license.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
A 'Member' is simply someone who owns a separate interest, like a piece of property or a condo unit.
“Member” means an owner of a separate interest.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This section defines the term "person" to include not just individual people, but also organizations like companies, governments, trusts, partnerships, and other types of entities.
“Person” means a natural person, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, limited liability company, association, or other entity.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
A planned development is a type of real estate project that is not a community apartment, condo, or stock cooperative. It includes shared spaces (common area) that are either owned by an association or jointly by the property owners. These areas are managed by an association that can charge fees or assessments, which can become liens on individual properties if unpaid, meaning they could potentially lead to financial claims against the property.
“Planned development” means a real property development other than a community apartment project, a condominium project, or a stock cooperative, having either or both of the following features:
(a)CA Civil Law Code § 4175(a) Common area that is owned either by an association or in common by the owners of the separate interests who possess appurtenant rights to the beneficial use and enjoyment of the common area.
(b)CA Civil Law Code § 4175(b) Common area and an association that maintains the common area with the power to levy assessments that may become a lien upon the separate interests in accordance with Article 2 (commencing with Section 5650) of Chapter 8.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
The term "reserve accounts" refers to money set aside by a board for future repairs or upgrades for major items the association must maintain. It also includes any money from compensation or settlements for property damage due to construction or design defects, which must be tracked separately from other reserve funds.
“Reserve accounts” means both of the following:
(a)CA Civil Law Code § 4177(a) Moneys that the board has identified for use to defray the future repair or replacement of, or additions to, those major components that the association is obligated to maintain.
(b)CA Civil Law Code § 4177(b) The funds received, and not yet expended or disposed of, from either a compensatory damage award or settlement to an
association from any person for injuries to property, real or personal, arising from any construction or design defects. These funds shall be separately itemized from funds described in subdivision (a).
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This section explains that 'reserve account requirements' are the funds an association needs to have available at a certain time to fix or replace major components it must maintain.
“Reserve account requirements” means the estimated funds that the board has determined are required to be available at a specified point in time to repair, replace, or restore those major components that the association is obligated to maintain.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
This section defines what a "separate interest" means in different types of housing projects. In a community apartment project, it's the right to exclusively occupy an apartment. In a condominium project, it's an individually owned unit. For planned developments, it's individually owned property like a lot or space. In a stock cooperative, it's the exclusive right to use a part of the property. Additionally, this section describes what parts of a property are considered part of a separate interest, typically the interior surfaces of walls and floors, unless stated otherwise. Finally, the type of ownership of a separate interest can vary, such as owning it outright or for a specific time period.
(a)CA Civil Law Code § 4185(a) “Separate interest” has the following meanings:
(1)CA Civil Law Code § 4185(a)(1) In a community apartment project, “separate interest” means the exclusive right to occupy an apartment, as specified in Section 4105.
(2)CA Civil Law Code § 4185(a)(2) In a condominium project, “separate interest” means a separately owned unit, as specified in Section 4125.
(3)CA Civil Law Code § 4185(a)(3) In a planned development, “separate interest” means a separately owned lot, parcel, area, or space.
(4)CA Civil Law Code § 4185(a)(4) In a stock cooperative, “separate interest” means the exclusive right to occupy a portion of the real property, as specified in Section 4190.
(b)CA Civil Law Code § 4185(b) Unless the declaration or condominium plan, if any exists, otherwise provides, if walls, floors, or ceilings are designated as boundaries of a separate interest, the interior surfaces of the perimeter walls, floors, ceilings, windows, doors, and outlets located within the separate interest are part of the separate interest and any other portions of the walls, floors, or ceilings are part of the common area.
(c)CA Civil Law Code § 4185(c) The estate in a separate interest may be a fee, a life estate, an estate for years, or any
combination of the foregoing.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
A 'stock cooperative' is a type of housing arrangement where a corporation owns a building, and shareholders have the right to exclusively live in specific parts of it. Each shareholder's stake in the corporation is considered an interest in a shared real estate development. This definition also includes a 'limited equity housing cooperative,' which has specific criteria under another section of the law.
(a)CA Civil Law Code § 4190(a) “Stock cooperative” means a development in which a corporation is formed or availed of, primarily for the purpose of holding title to, either in fee simple or for a term of years, improved real property, and all or substantially all of the shareholders of the corporation receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation. The owners’ interest in the corporation, whether evidenced by a share of
stock, a certificate of membership, or otherwise, shall be deemed to be an interest in a common interest development and a real estate development for purposes of subdivision (f) of Section 25100 of the Corporations Code.
(b)CA Civil Law Code § 4190(b) A “stock cooperative” includes a limited equity housing cooperative which is a stock cooperative that meets the criteria of Section 817.
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(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)