DAVIS-STIRLING COMMON INTEREST DEVELOPMENT ACT

AND

RELATED LAWS

2008 EDITION

Compliments of Angius & Terry llp

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e-mail: law@angius-terry.com

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2008 Edition

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WHAT IS IN THIS BOOKLET?

The Davis-Stirling Common Interest Development Act (“the Davis-Stirling Act”) was passed into law by the California Legislature in 1985. By this Act, the Legislature sought to provide statutory guidance to Community Associations throughout the State. Coupled with the pertinent Covenants, Conditions and Restrictions (“CC&Rs”), Bylaws, and Rules and Regulations, the provisions of the Davis-Stirling Act, and related laws and Court decisions, set out the legal principles that govern the management and operation of Community Associations in California. In addition, the Davis-Stirling Act sets forth certain of the legal guidelines that define the relationship between the Community Association, its members and third persons.

The Davis-Stirling Act was drafted by a committee of individuals representing a broad array of interests, including developers, managers, owners, academics and lawyers. The purpose initially was to gather in one place all of the laws affecting Common Interest Developments. However, because of the divergent interests of the participants and in order to produce some kind of legislation, the purpose changed to include in the Davis-Stirling Act only those provisions on which all of the committee agreed. Thus, not all statutes governing the operation of Common Interest Developments are located in the Davis-Stirling Act.

This booklet contains the text of the Davis-Stirling Act in its entirety. We have also included certain other California and Federal statutes that are either incorporated by reference in the Davis-Stirling Act or which we, at Angius & Terry LLP, have found to be relevant to the management and operation of Community Associations.

It is important to note that the Davis-Stirling Act is continually being amended as the Legislature attempts to create, in piecemeal fashion, a more comprehensive body of law governing Common Interest Developments. We have included in bold type the changes that became effective as of January 1, 2008. Amendments that became effective after January 1, 2008, are not reflected in this booklet.

WHO IS Angius & Terry llp ?

Angius & Terry llp has over twenty years of experience helping Community Associations and property owners protect their rights.

Angius & Terry llp prides itself on the service and commitment that it offers to its clients.

Angius & Terry llp possesses extensive experience handling the corporate and business affairs of its Community Association clients. This experience includes:

∙ Drafting and amending CC&Rs, Bylaws, Articles of Incorporation and other governing documents;

∙ Interpretation and enforcement of governing documents;

∙ Interpretation of statutes and ordinances as they relate to the management and operation of the Association;

∙ Assessment collection and lien procedures;

∙ Architectural control committees and compliance;

∙ Contract drafting and review;

∙ Claims by and against Association vendors, contractors and suppliers.

Angius & Terry llp has raised hundreds of millions of dollars in Community Association construction defect lawsuits. These lawsuits include two of the largest condominium association construction defect settlements in the history of Northern California and the only Community Association construction defect lawsuit that resulted in the demolition and rebuilding of an entire Community Association development.

Angius & Terry llp’s objective is to use the knowledge gained during the litigation process to work with our Community Association clients and their management companies after the lawsuit is concluded. This will ensure that the reconstruction process satisfactorily addresses the Community Association’s construction problems. Conclusion of a Community Association’s lawsuit does not end our commitment to that Community Association.

Angius & Terry llp offers free initial consultations to Community Association Boards of Directors faced with potential construction defects. In many instances, there are alternatives which, when properly used, can resolve construction defect problems short of litigation.

Angius & Terry llp has been awarded an “A-V” rating by Martindale-Hubbell, the highest rating given to any law firm in the United States. We are active participants and sponsors of California Association of Community Managers (CACM), Community Associations Institute (CAI), Executive Council of Homeowners (ECHO) and other trade organizations. In addition, we are regularly called upon to advise legislative committees and testify before the California Legislature in connection with bills that impact Community Associations throughout the State. We have also been called upon to provide consulting services to the State Bar of California.

THE FIRM

MR. ANGIUS

has specialized in community association and construction law since 1977. His experience over the years in dealing with the legal problems that confront community associations has helped position Angius & Terry LLP as one of the premier firms representing community associations in the western United States. A dynamic and animated speaker, he is frequently asked to lecture with respect to legal issues which relate to common interest developments. He has, likewise, written numerous articles on a wide range of topics pertaining to common interest developments.

Among his many professional accomplishments, Mr. Angius was the lead attorney in the landmark Willow Park Marina Homeowners Association suit which resulted in the complete demolition and reconstruction of a common interest development. He was also the lead attorney in a homeowners association construction defect suit which resulted in a recovery approaching $19,000,000 for only 155 condominium units.

Mr. Angius graduated from Columbia University in 1974 with a Bachelor of Arts degree and received his law degree in 1977 from the University of the Pacific, McGeorge School of Law. He is a member of the California State Bar Association, Nevada State Bar Association, Colorado State Bar Association, Bar Association of San Francisco, Clark County Bar Association and the litigation and construction sections of the American Bar Association. He is also a member of the Community Association Institute, Executive Council of Home Owners, and the California Association of Community Managers.

MR. TERRY

specializes in construction, community association and insurance law. In addition to his extensive handling of construction defect cases, he works closely with association management companies and boards of directors in providing both legal and practical advice regarding the day-to-day affairs of their associations, enforcement and revision of governing documents, and delinquent assessment collection.

His unique combination of knowledge and experience enabled him to secure the largest condominium construction defect settlement in Northern California history for a firm client.

He graduated from the University of California at Irvine in 1980 with degrees in Literature and Economics and received his law degree in 1984 from the University of California, Hastings College of the Law, where he served on the editorial board of the Hastings Constitutional Law Quarterly.

He is an active member of the Executive Council of Homeowners (ECHO), where he served on the Legislative Committee; the California Association of Community Managers (CACM), where he served on the Legal Advisory Committee; and the Consumer Attorneys of California, where he served on the Construction Defect Litigation Committee. In addition, he is an active member of the Community Associations Institute (CAI) and the Sacramento Area Condominium Associations (SACA).

Mr. Terry served on the California Senate Housing and Land Use Committee’s task force studying changes to the Davis-Stirling Common Interest Development Act.

Mr. Terry frequently lectures on topics relevant to common interest developments, including new and pending legislation, mediation, effective assessment collection and construction defect litigation.

Table of Contents

I.DAVIS-STIRLING COMMON INTEREST DEVELOPMENT ACT

§1350. Citation

§1350.7. Delivery of Documents

§1351. Definitions

§1352. Application of Title; Creation of Common Interest Development

§1352.5. Restrictive Covenant; Deletion From Declaration or Other Governing Document

§1353. Declaration; Contents; Notice of Airport in Vicinity

§1353.5 Display of the United States Flag by Owner On or In Owner’s Separate Interest or Within Exclusive Use Common Area

§1353.6 Display of Noncommercial Signs, Posters, Flags, and Banners

§1353.7. Common interest developments; roof installation and repair; governing documents.

§1353.8. Architectural guidelines; Prohibiting use of low water-using plants