HOA Homefront™
By Kelly G. Richardson
This week Governor Schwarzenegger vetoed AB 1328, authored by Assembly Member Salas.
The bill would have allowed a common interest development board, regardless of any ban on long-term contracts in the association’s Bylaws or CC&R's, to enter into a contract of up to five years for contracts for water or energy which were “reasonably anticipated“ to result in savings.
Associations already have the ability to enter into longer contracts, so long as the membership votes to approve. Otherwise, a board would be able to tie the hands of future boards through long-term contracts. Concerns were raised by opponents, including the Community Associations Institute, as to whether removing this important limitation on board power would be healthy for associations.
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