Assembly Bill 3182 and California’s Growing List of HOA Restraints

Assembly Bill 3182 and California’s Growing List of HOA Restraints

On September 28, 2020, Governor Gavin Newsom signed Assembly Bill 3182 into law. The new law amends Civil Code § 4740 and adds Civil Code § 4741 putting new rental restrictions on homeowners associations. Under the new law, rental bans will become illegal starting January 1, 2021. The change to the law also removes homeowners’ rights to vote on banning rentals. In addition, at least 25% of HOA neighborhoods can be used as rental properties. The law also removes the provision which limits the application to governing documents that became …