Community Insider Winter 2020 | Page 36

it appears that an association would be prohibited from adopting or enforcing any provision requiring a minimum rental period of greater than 30 days . Therefore , a provision in HOA governing documents requiring a minimum rental term of greater than 30 days will be void and unenforceable effective January 1 , 2021 . Consequently , the association will be left with no minimum rental period applicable for the community .
Another common rental provision found in association governing documents is one establishing maximum cap on the percentage of properties that can be rented at any given time . The new Civil Code Section 4741 will prohibit an association from adopting or enforcing a provision in a that restricting the rental of properties within the association to less than 25 percent of the properties . Thus , if HOA governing documents note a rental cap of less than 25 percent of the properties , that provision will be void and unenforceable effective January 1 , 2021 . The association will be left with no rental cap applicable to the properties in the association .
Minimum occupancy rental restrictions are occasionally found in association governing
documents . These restrictions establish a minimum occupancy period before an owner may rent the property . For example , such a restriction might require a property to be occupied by an owner for at least a year after the close of escrow before the owner may rent the property . This type of restriction , while not specifically addressed in the new Civil Code Section 4741 , could be considered to have the effect of prohibiting or unreasonably restricting rentals under the new law and , therefore , will likely be void and unenforceable effective January 1 , 2021 .
The new law also provides that accessory dwelling units ( ADUs ) and junior accessory dwelling units ( JADUs ) shall not be considered separate interests for purposes of Civil Code Section 4741 . So , while Civil Code Section 4741 will allow associations to adopt or enforce rental caps of not less than 25 percent of the separate interests ( i . e ., properties ), such a rental cap would not prevent owners with an ADU or JADU on their property from renting them , even if 25 percent of the properties in the association are already being rented . This is because the ADU or JADU would not be counted against the rental cap . Similarly , the
36 | SAN DIEGO COMMUNITY INSIDER WINTER 2020