CA AB1927

Any provision prohibiting rental or lease of separate interests added to or initially recorded in governing documents on or after January 1, 2011, is void unless approved by a vote of unit owners.

Rental or lease prohibition provisions adopted on or after January 1, 2011, require approval through a vote of owners with voting power, conducted pursuant to Section 1363.03 and subject to standard governing document amendment voting requirements.

Property owners transferring a separate interest must disclose to prospective purchasers any governing document provision that prohibits rental or leasing of units in the common interest development.

Associations cannot impose or collect assessments, penalties, or fees in connection with transfer of title except for actual costs to change records and reasonable fees for document copying.

Willful violations of disclosure requirements make violators liable for actual damages plus a civil penalty up to $500, with prevailing parties entitled to recover reasonable attorneys' fees.