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New Civil Code section 4515 requires that no governing document, including the operating rules, may prohibit a member or a resident from engaging in certain activities, including peacefully assembling or meeting during reasonable hours and in a reasonable manner for purposes relating to common interest development living, association elections, legislation, election to public office, or the initiative, referendum, or recall processes (“proper purposes”).

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AB 1412 made two unrelated changes. Both of them make a lot of sense.

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FHA certification is not mandatory for condominium associations. Associations tend to go through the certification process so that there is a larger pool of potential homebuyers, which theoretically increases the value and marketability of units. Further, FHA will only insure mortgages used to purchase a primary residence. As a result, a board can potentially increase the number of owner-occupied homes by certifying the association. In theory, being FHA certified is a signal to all potential buyers that the association is in good financial health, even if the buyer will not be using an FHA-insured loan.

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