California · Davis-Stirling Act

Who acts for the association, and the limits on them.

A director may not vote on their own discipline. A managing agent may not keep the interest on the association's money. And neither may count the ballots in the association's election. These are the same rule, written three times.

Articles Civ. Code §§ 5350 · 5375–5385 · 5400–5405 Chapter 6, Association Governance · Articles 8, 9, 10 Sections 6 Text verified 2026-10-11

Six votes a director must sit out

§ 5350(a) applies Corporations Code §§ 7233 and 7234 to every association whether incorporated or unincorporated, notwithstanding any other law. Then subdivision (b) names six decisions a director or committee member may not vote on, and every one of them is about themselves:

Their own discipline.
An assessment against them for damage to the common area.
Their own request for a payment plan on overdue assessments.
Whether to foreclose on a lien against their own separate interest.
Review of a proposed physical change to their own separate interest.
A grant of exclusive use common area to them.

The list is closed, but subdivision (c) says it does not limit any other law or governing-document provision on interested decisions. So it is a floor, not a ceiling — and the principle under it is the one that decides who may serve as inspector of elections.

Why the manager cannot count the ballots

§ 5110(b) disqualifies as inspector anyone under contract to the association for other compensable services. That is the managing agent, by definition — and the sections below are why. An agent who holds the association's funds, who must disclose whether they take a referral fee from the company that sells the association's documents, and whose own fee schedule the board sets, is an interested party. The disqualification is not suspicion of the individual; it is the structure.

What a prospective agent has to put in writing

§ 5375 requires a written statement to the board no more than 90 days before entering a management agreement: who owns the firm, which licences it holds and when they expire, which certifications and from whom, and any business in which it has an ownership interest.

Subdivision (e) is the one to read twice: whether the manager or the firm receives a referral fee or other monetary benefit from a third party that distributes the association's documents under §§ 4528 and 4530. Those are the documents a seller must buy at transfer. The disclosure exists because the person choosing the vendor and the person paid by the vendor can be the same person.

The association's money, in someone else's hands

§ 5380 governs funds a managing agent accepts on the association's behalf. The account must be in the agent's name as trustee or in the association's name, federally insured, and kept separate from the agent's own money and from every other client's. No interest earned may inure to the agent or the agent's employees, and commingling is prohibited outright.

Subdivision (b)(6) sets the approval threshold for moving money out of reserve or operating accounts — prior written board approval above the lesser of $5,000 or 5 percent of estimated operating income for associations with 50 or fewer separate interests, and the lesser of $10,000 or 5 percent for 51 or more. Associations scale; the percentage does the work the flat figure stops doing. Subdivision (e) gives the prevailing party legal fees and costs.

And a seventeen-word section decides who all of this applies to: § 5385 excludes a full-time employee of the association from the definition of managing agent. An in-house manager is not covered by this article — which does not make them eligible to serve as inspector, because § 5110(b) turns on compensable services rather than on this definition.

What the state is told

§ 5405 requires every association, incorporated or not, to file eleven items with the Secretary of State: its name and addresses, the managing agent's name, address and daytime telephone number, its county and city, the nearest cross street, the type of development, and the number of separate interests. Subdivision (f) restricts only the president's contact details to governmental use; everything else is subject to public inspection pursuant to the California Public Records Act.

Subdivisions (g) and (h) are worth knowing if you ever need the history: a new filing supersedes the previous one, and the Secretary of State may destroy what it superseded. There is a current snapshot of every association in California, and no archive behind it.

§ 5400 directs the Department of Consumer Affairs and the Bureau of Real Estate to develop an online education course for directors — conditioned on existing funds being available. The agency has since been renamed: it is the Department of Real Estate again. The statute still carries the older name.

Civil Code § 5350 — the text

Matters a Director May Not Vote On
Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.

(a)Notwithstanding any other law, and regardless of whether an association is incorporated or unincorporated, the provisions of Sections 7233 and 7234 of the Corporations Code shall apply to any contract or other transaction authorized, approved, or ratified by the board or a committee of the board.

(b)A director or member of a committee shall not vote on any of the following matters:

(b)(1)Discipline of the director or committee member.

(b)(2)An assessment against the director or committee member for damage to the common area or facilities.

(b)(3)A request, by the director or committee member, for a payment plan for overdue assessments.

(b)(4)A decision whether to foreclose on a lien on the separate interest of the director or committee member.

(b)(5)Review of a proposed physical change to the separate interest of the director or committee member.

(b)(6)A grant of exclusive use common area to the director or committee member.

(c)Nothing in this section limits any other provision of law or the governing documents that govern a decision in which a director may have an interest.

Sources differ. Text taken verbatim from the Legislative Counsel of California official code database and checked word for word against an independent publisher. The two sources disagree on one word: the official database reads “Sections 7233 and 7234 of the Corporations Code” where california.public.law reads “Section”. The plural is what the Legislative Counsel publishes and is what the citation list requires. The same substitution appears at §§ 4210, 5310, 5350 and 5375 — in every case immediately before a list of two or more section numbers, and nowhere else, which is where the second source's own citation-linking rewrites the word.

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5350.json — the same text with its subdivision anchors, dates and sources.

Civil Code § 5375 — the text

What a Prospective Managing Agent Must Disclose
Amended by Stats. 2017, Ch. 127, Sec. 5. (AB 690) Effective January 1, 2018.

A prospective managing agent of a common interest development shall provide a written statement to the board as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:

(a)The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.

(b)Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified in subdivision (a). If a license is currently held by any of those persons, the statement shall contain the following information:

(b)(1)What license is held.

(b)(2)The dates the license is valid.

(b)(3)The name of the licensee appearing on that license.

(c)Whether or not any relevant professional certifications or designations such as architectural design, construction, engineering, real property management, or accounting are currently held by any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:

(c)(1)What the certification or designation is and what entity issued it.

(c)(2)The dates the certification or designation is valid.

(c)(3)The names in which the certification or designation is held.

(d)Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent.

(e)Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530.

Sources differ. Text taken verbatim from the Legislative Counsel of California official code database and checked word for word against an independent publisher. The two sources disagree on one word: the official database reads “Sections 4528 and 4530” where california.public.law reads “Section”. The plural is what the Legislative Counsel publishes and is what the citation list requires. The same substitution appears at §§ 4210, 5310, 5350 and 5375 — in every case immediately before a list of two or more section numbers, and nowhere else, which is where the second source's own citation-linking rewrites the word.

What this section used to say

Read by comparing the Legislative Counsel's biennial publications of the code, one per session. The earliest is the 2013–2014 publication, which already carries the Act in its present numbering, so changes are recorded from the publication after it onward. This matters beyond the record: § 5145 gives a member one year to challenge an election, and the text that governs is the text in force on the day it was held, not today's.

AB 690in force 2018-01-01

Amended by Stats. 2017, Ch. 127, Sec. 5. (AB 690) Effective January 1, 2018.

7 subdivisions changed
See what changed
1. (a)~~, including, but not limited to,~~ The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a ~~professional common interest development manager. If any certification or designation is held,~~ corporation, the written statement shall include the ~~following information:~~ names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.
2. (c)… any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:
3. (c)(1)What the certification or designation is and what entity issued it.
4. (c)(2)The dates the certification or designation is valid.
5. (c)(3)The names in which the certification or designation is held.
6. (d)Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent.
7. (e)Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530.

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5375.json — the same text with its subdivision anchors, dates and sources.

Civil Code § 5380 — the text

Association Funds in a Managing Agent's Hands
Amended by Stats. 2021, Ch. 270, Sec. 1. (AB 1101) Effective January 1, 2022.

(a)A managing agent of a common interest development who accepts or receives funds belonging to the association shall deposit those funds that are not placed into an escrow account with a bank, savings association, or credit union or into an account under the control of the association, into a trust fund account maintained by the managing agent in a bank, savings association, or credit union in this state. All funds deposited by the managing agent in the trust fund account shall be kept in this state in a financial institution, as defined in Section 31041 of the Financial Code, which is insured by the federal government, or is a guaranty corporation subject to Section 14858 of the Financial Code, and shall be maintained there until disbursed in accordance with written instructions from the association entitled to the funds.

(b)At the written request of the board, the funds the managing agent accepts or receives on behalf of the association shall be deposited into an account in a bank, savings association, or credit union in this state that is insured by the Federal Deposit Insurance Corporation, National Credit Union Administration Insurance Fund, or a guaranty corporation subject to Section 14858 of the Financial Code, provided all of the following requirements are met:

(b)(1)The account is in the name of the managing agent as trustee for the association or in the name of the association.

(b)(2)All of the funds in the account are covered by insurance provided by an agency of the federal government or a guaranty corporation subject to Section 14858 of the Financial Code. Those funds may only be deposited in accounts that protect the principal. In no event may those funds be invested in stocks or high-risk investment options.

(b)(3)The funds in the account are kept separate, distinct, and apart from the funds belonging to the managing agent or to any other person for whom the managing agent holds funds in trust.

(b)(4)The managing agent discloses to the board the nature of the account, how interest will be calculated and paid, whether service charges will be paid to the depository and by whom, and any notice requirements or penalties for withdrawal of funds from the account.

(b)(5)No interest earned on funds in the account shall inure directly or indirectly to the benefit of the managing agent or the managing agent’s employees.

(b)(6)Transfers of funds out of the association’s reserve or operating accounts shall not be authorized without prior written approval from the board of the association unless the amount of the transfer is less than the following:

(b)(6)(A)The lesser of five thousand dollars ($5,000) or 5 percent of the estimated income in the annual operating budget, for associations with 50 or less separate interests.

(b)(6)(B)The lesser of ten thousand dollars ($10,000) or 5 percent of estimated income in the annual operating budget, for associations with 51 or more separate interests.

(c)The managing agent shall maintain a separate record of the receipt and disposition of all funds described in this section, including any interest earned on the funds.

(d)The managing agent shall not commingle the funds of the association with the managing agent’s own money or with the money of others that the managing agent receives or accepts.

(e)The prevailing party in an action to enforce this section shall be entitled to recover reasonable legal fees and court costs.

(f)As used in this section, “completed payment” means funds received that clearly identify the account to which the funds are to be credited.

What this section used to say

AB 1101in force 2022-01-01

Amended by Stats. 2021, Ch. 270, Sec. 1. (AB 1101) Effective January 1, 2022.

14 subdivisions changed
See what changed
1. (a)… which is insured by the federal government, or is a guaranty corporation subject to Section 14858 of the Financial Code, and shall be maintained there until disbursed …
2. (b)… the association shall be deposited into an ~~interest-bearing~~ account in a bank, savings association, or credit union in this ~~state,~~ state that is insured by the Federal Deposit Insurance Corporation, National Credit Union Administration Insurance Fund, or a guaranty corporation subject to Section 14858 of the Financial Code, provided all of the following requirements are met:
3. (b)(2)… provided by an agency of the federal ~~government.~~ government or a guaranty corporation subject to Section 14858 of the Financial Code. Those funds may only be deposited in accounts that protect the principal. In no event may those funds be invested in stocks or high-risk investment options.
4. (b)(3)… whom the managing agent holds funds in ~~trust except that the funds of various associations may be commingled as permitted pursuant to subdivision (d).~~ trust.
5. (b)(6)Transfers of ~~greater than ten thousand dollars ($10,000)~~ funds out of the association’s reserve or ~~5 percent of an association’s total combined reserve and~~ operating ~~account deposits, whichever is lower,~~ accounts shall not be authorized ~~from the account~~ without prior written approval from the board of the ~~association.~~ association unless the amount of the transfer is less than the following:
6. (b)(6)(A)The lesser of five thousand dollars ($5,000) or 5 percent of the estimated income in the annual operating budget, for associations with 50 or less separate interests.
7. (b)(6)(B)The lesser of ten thousand dollars ($10,000) or 5 percent of estimated income in the annual operating budget, for associations with 51 or more separate interests.
8. (d)… others that the managing agent receives or ~~accepts, unless all of the following requirements are met:~~ accepts.
9. (d)(1)The managing agent commingled the funds of various associations on or before February 26, 1990, and has obtained a written agreement with the board of each association that the managing agent will maintain a fidelity and surety bond in an amount that provides adequate protection to the associations as agreed upon by the managing agent and the board of each association.
10. (d)(2)The managing agent discloses in the written agreement whether the managing agent is deriving benefits from the commingled account or the bank, credit union, or savings institution where the moneys will be on deposit.
11. (d)(3)The written agreement provided pursuant to this subdivision includes, but is not limited to, the name and address of the bonding companies, the amount of the bonds, and the expiration dates of the bonds.
12. (d)(4)If there are any changes in the bond coverage or the companies providing the coverage, the managing agent discloses that fact to the board of each affected association as soon as practical, but in no event more than 10 days after the change.
13. (d)(5)~~The bonds assure the protection of the association and provide the association at least 10 days’ notice prior to cancellation.~~
14. (d)(6)~~Completed payments on the behalf of the association are deposited within 24 hours or the next business day and do not remain commingled for more than 10 calendar days.~~
AB 2912in force 2019-01-01

Amended by Stats. 2018, Ch. 396, Sec. 2. (AB 2912) Effective January 1, 2019.

1 subdivision changed
See what changed
1. (b)(6)Transfers of greater than ten thousand dollars ($10,000) or 5 percent of an association’s total combined reserve and operating account deposits, whichever is lower, shall not be authorized from the account without prior written approval from the board of the association.

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5380.json — the same text with its subdivision anchors, dates and sources.

Civil Code § 5385 — the text

“Managing Agent” Excludes a Full-Time Employee
Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.

For the purposes of this article, “managing agent” does not include a full-time employee of the association.

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5385.json — the same text with its subdivision anchors, dates and sources.

Civil Code § 5400 — the text

Online Education Course for Directors
Amended (as to be added by Stats. 2012, Ch. 180) by Stats. 2013, Ch. 352, Sec. 55. (AB 1317) Effective September 26, 2013. Addition and amendment operative January 1, 2014, by Stats. 2012, Ch. 180, Sec. 3, and Stats. 2013, Ch. 352, Sec. 543.

To the extent existing funds are available, the Department of Consumer Affairs and the Bureau of Real Estate shall develop an online education course for the board regarding the role, duties, laws, and responsibilities of directors and prospective directors, and the nonjudicial foreclosure process.

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5400.json — the same text with its subdivision anchors, dates and sources.

Civil Code § 5405 — the text

The Statement Every Association Files With the Secretary of State
Amended by Stats. 2026, Ch. 28, Sec. 14. (SB 170) Effective June 29, 2026. Operative July 1, 2026, by its own provisions.

(a)To assist with the identification of common interest developments, each association, whether incorporated or unincorporated, shall submit to the Secretary of State, on a form and for a fee not to exceed thirty dollars ($30) that the Secretary of State shall prescribe, the following information concerning the association and the development that it manages:

(a)(1)A statement that the association is formed to manage a common interest development under the Davis-Stirling Common Interest Development Act.

(a)(2)The name of the association.

(a)(3)The street address of the business or corporate office of the association, if any.

(a)(4)The street address of the association’s onsite office, if different from the street address of the business or corporate office, or if there is no onsite office, the street address of the responsible officer or managing agent of the association.

(a)(5)The name, address, and either the daytime telephone number or email address of the president of the association, other than the address, telephone number, or email address of the association’s onsite office or managing agent.

(a)(6)The name, street address, and daytime telephone number of the association’s managing agent, if any.

(a)(7)The county, and, if in an incorporated area, the city in which the development is physically located. If the boundaries of the development are physically located in more than one county, each of the counties in which it is located.

(a)(8)If the development is in an unincorporated area, the city closest in proximity to the development.

(a)(9)The front street and nearest cross street of the physical location of the development.

(a)(10)The type of common interest development managed by the association.

(a)(11)The number of separate interests in the development.

(b)The association shall submit the information required by this section as follows:

(b)(1)By incorporated associations, within 90 days after the filing of its original articles of incorporation, and thereafter at the time the association files its statement of principal business activity with the Secretary of State pursuant to Section 8210 of the Corporations Code.

(b)(2)By unincorporated associations, in July 2003, and in that same month biennially thereafter. Upon changing its status to that of a corporation, the association shall comply with the filing deadlines in paragraph (1).

(c)The association shall notify the Secretary of State of any change in the street address of the association’s onsite office or of the responsible officer or managing agent of the association in the form and for a fee prescribed by the Secretary of State, within 60 days of the change.

(d)The penalty for an incorporated association’s noncompliance with the initial or biennial filing requirements of this section shall be suspension of the association’s rights, privileges, and powers as a corporation and monetary penalties, to the same extent and in the same manner as suspension and monetary penalties imposed pursuant to Section 8810 of the Corporations Code.

(e)The statement required by this section may be filed, notwithstanding suspension of the corporate powers, rights, and privileges under this section or under provisions of the Revenue and Taxation Code. Upon the filing of a statement under this section by a corporation that has suffered suspension under this section, the Secretary of State shall certify that fact to the Franchise Tax Board and the corporation may thereupon be relieved from suspension, unless the corporation is held in suspension by the Franchise Tax Board by reason of Section 23301, 23301.5, or 23775 of the Revenue and Taxation Code.

(f)The Secretary of State shall make the information submitted pursuant to paragraph (5) of subdivision

(a)available only for governmental purposes and only to Members of the Legislature and the Business and Consumer Services Agency, upon written request. All other information submitted pursuant to this section shall be subject to public inspection pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). The information submitted pursuant to this section shall be made available for governmental or public inspection.

(g)Whenever any form is filed pursuant to this section, it supersedes any previously filed form.

(h)The Secretary of State may destroy or otherwise dispose of any form filed pursuant to this section after it has been superseded by the filing of a new form.

(i)The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026.

What this section used to say

SB 170in force 2026-06-29

Amended by Stats. 2026, Ch. 28, Sec. 14. (SB 170) Effective June 29, 2026. Operative July 1, 2026, by its own provisions.

3 subdivisions changed
See what changed
1. (f)The Secretary of State shall make the information submitted pursuant to paragraph (5) of subdivision (a) available only for governmental purposes and only to Members of the Legislature and the Business, Consumer Services, and Housing Agency, upon written request. All other information submitted pursuant to this section shall be subject to public inspection pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). The information submitted pursuant to this section shall be made available for governmental or public inspection.
2. (a)~~To assist with~~ available only for governmental purposes and only to Members of the ~~identification of common interest developments, each association, whether incorporated or unincorporated,~~ Legislature and the Business and Consumer Services Agency, upon written request. All other information submitted pursuant to this section shall ~~submit~~ be subject to public inspection pursuant to the ~~Secretary~~ California Public Records Act (Division 10 (commencing with Section 7920.000) of ~~State, on a form and~~ Title 1 of the Government Code). The information submitted pursuant to this section shall be made available for ~~a fee not to exceed thirty dollars ($30) that the Secretary of State shall prescribe, the following information concerning the association and the development that it manages:~~ governmental or public inspection.
3. (i)The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026.
AB 474in force 2022-01-01

Amended by Stats. 2021, Ch. 615, Sec. 53. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.

1 subdivision changed
See what changed
1. (f)… pursuant to the California Public Records Act ~~(Chapter 3.5~~ (Division 10 (commencing with Section ~~6250) of Division 7~~ 7920.000) of Title 1 of the Government Code). …

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5405.json — the same text with its subdivision anchors, dates and sources.

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