Quote:
Posted By DeanJ on 03/23/2025 12:59 PM
Posted By TerriS6 on 03/23/2025 9:32 AM
It is common that contracts lasting over one year need member approval, with certain exceptions.
Where do you get these misconceptions? It not common for homeowner approval of any contract, nor are approvals for multi year contracts.
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One-Year Limitation. Virtually all CC&Rs have a one-year limitation on contracts entered into by the association. This limitation is required by the Department of Real Estate (Cal. Admin. Code, Title. 10, § 2792.21) to prevent the developer from obligating the association to long-term contracts that may favor the developer but harm the association. Once the developer has turned over control of the association to the membership, the CC&Rs may be amended to eliminate the restriction or to change it to 3 or 5-year contract limitations, depending on the type of vendor. It allows the association to negotiate more favorable contracts for elevator maintenance, cable TV service, etc.
https://www.davis-stirling.com/HOME/C/Contract-Formation-Inspection-Breach#:~:text=One%2DYear%20Limitation.,Admin.
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Our HOA does in fact still maintain the one-year limit on contracts, with some exceptions
4.2. Powers and Duties.
The Board has the powers and duties necessary to administer the Master Association's affairs
and may do all acts and things not by law or by these Bylaws directed to be exercised and done
exclusively by the Members. The Board may not enter into any contract with a Person
(including Declarant) wherein the Person will furnish goods or services for the Master Common
Area, or the Master Association for a term in excess of one (1) year, without the vote or written
consent of Members representing at least a majority of the Master Association's voting power,
except for the following

it goes one to list public utilities, insurance, alarms. etc
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We just signed a contract with Flock. Normally, they require a 2-year commitment, but since our governing documents have the 1-year limitation, they had to make an exception and even acknowledged that a lot of California HOA's have this restriction...