Source: Adrian J. Adams Esq.
QUESTION: If the board of a commercial CID changes their collection policy, does it require 30-day review and comment period like residential associations?
QUESTION: If the board of a commercial CID changes their collection policy, does it require 30-day review and comment period like residential associations?
ANSWER: For commercial and industrial common interest developments there is no notice or 30-day review requirement for adopting and revising operating rules.
In the Commercial CID Act, the procedure for adopting rules is determined by the development’s governing documents. If your documents require advance notice to the membership and a 30-day review period, then you must do so. If your governing documents are silent, the board may adopt rules by a motion at a board meeting. The rules immediately become effective upon notice to the membership.
RECOMMENDATION: Even if not required by your governing documents, it is still a good idea to notify the membership of any proposed rule change. Members like to stay informed and it gives the board a chance to find out if there are any serious problems with the rule change.
Thank you to attorney Wayne D. Louvier for researching this issue. Wayne works out of our Orange County office.
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