This law defines two terms related to the management of a community association. An "operating rule" is a guideline set by the board that affects how the community is run. A "rule change" refers to when the board creates, modifies, or removes one of these rules.

For an operating rule to be valid and enforceable, it must fulfill several conditions. It must be written down, authorized by the board's legal or governing documents, and not contradict existing laws or the organization's foundational documents. Furthermore, the rule should be made or changed honestly, following the proper procedures, and it must be reasonable.

This law outlines when certain rules (Sections 4360 and 4365) apply to managing shared living spaces, like condos or homeowner associations. The rules are applicable to things like using shared areas, setting penalties for breaking rules, handling payments, resolving disputes, approving property changes, and managing elections. However, these rules don't apply to straightforward decisions about maintaining shared spaces, decisions on unique issues, setting fees, rule changes required by law, or documents that just repeat existing rules.

This law explains how a board should handle changes to rules. Generally, they must give notice to members 28 days before a proposed rule change, including the text and purpose of the change, unless it's an emergency. The board must consider member comments before deciding. After making a rule change, they must notify members within 15 days, especially for emergency changes, which can last up to 120 days. These emergency changes can only happen when there's a health, safety threat, or financial risk and cannot be renewed.

This law section allows members of a homeowner association to reverse a rule change if they own at least 5% of the properties affected. They can call for a special vote, which must happen between 35 and 90 days after the request if it's submitted within a month of being notified of the rule change. Members have the right to see the membership list to gather signatures for the vote if it's relevant to their interests. The rule can be overturned if a majority of the voting members agree, or a higher percentage if specified. Members generally get one vote per property owned. A reversed rule can't be reintroduced for a year, but a new rule on the same topic can be made. Results of the vote must be announced within 15 days of counting the votes. This doesn't apply to urgent rule changes.

This law section states that any rule changes that started on or after January 1, 2004, must follow this article's guidelines. It also clarifies that if a rule change began before that date, its validity is not affected by this article. A rule change is considered to have started when the board takes its first official action towards implementing the change.