SB 1238: Common interest developments: management.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)Existing law, the Davis-Stirling Common Interest Development Act (act), provides for the creation and regulation of common interest developments.

Existing law defines “management services” for purposes of a common interest development to mean specified acts performed or offered to be performed in an advisory capacity for an association, including implementing provisions of governing documents for the operation of the common interest development.

This bill would revise the above definition to specify that it means acts performed or offered to be performed by an agent, including a managing agent and its employees, in an advisory capacity for an association, as prescribed.

Existing law imposes certain fiduciary duties on managers and agents of common interest developments.

This bill would provide that a managing agent, including its employees, that facilitates specified activities, including reviewing association operating accounts, owes a duty of care that is prudent and provides the highest good faith effort to the association and its members.

(2)Existing law requires a common interest development to be managed by an association and requires the association to distribute to its members an annual budget that includes, among other things, a summary of the association’s property, general liability, earthquake, flood, and fidelity insurance policies, a review of the financial statement of the association, and an annual policy statement, as provided. Existing law requires the owner of a separate interest in a common interest development to provide specified documents to a prospective purchaser as soon as practicable before the transfer of title or execution of a real property sales contract, including a copy of the most recent distributed annual budget, review of the financial statement, and annual policy statement and a report issued pursuant to the most recent inspection conducted.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 20, 2026In Senate. Consideration of Governor's veto pending.
2. September 20, 2026Vetoed by the Governor.
3. August 31, 2026Enrolled and presented to the Governor at 6 p.m.
4. August 27, 2026Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling.
5. August 26, 2026In Senate. Concurrence in Assembly amendments pending.
6. August 26, 2026Read third time. Passed. (Ayes 76. Noes 0. Page 6552.) Ordered to the Senate.
7. August 21, 2026Ordered to third reading.
8. August 21, 2026Read third time and amended.
9. August 21, 2026Assembly Rule 69(b)(1) suspended. (Ayes 55. Noes 17. Page 6296.)
10. August 19, 2026Ordered to third reading.
11. August 19, 2026Read third time and amended.
12. August 3, 2026Read second time. Ordered to third reading.