Petition Process Helpful for Failed Governing Document Amendments

If your association worked for months developing amended and restated CC&Rs and Bylaws; sent them out to the owners for a vote; and then they did not pass, don’t despair.  Old governing documents often require that 75% or 67% of the owners approve a CC&Rs amendment and this is a difficult hurdle to get over even in a community with responsive owners.  In some cases, where the CC&Rs require that the owners and first mortgage lenders approve amendments, the owner approval requirement may be met, but the lenders fail to respond. Civil Code Section 1356 provides a remedy if the association receives approvals from at least 50% of the owners but less than the supermajority required.  It can also be used to when lenders fail to respond.  Once an association has made a good faith effort to obtain the necessary votes required under the CC&Rs, it can apply to the Superior Court for approval of changes to the CC&Rs so long as a simple majority of the members have approved them.  If Bylaws do not pass, we can also obtain similar relief under Corporations Code Section 7515.

 Kathy Mills, Esq.

Address: 8220 University Ave #100, La Mesa, CA 91942

Phone Number:  +1 619-589-8800