SB 752  would create the Commercial and Industrial Common Interest Development Act, drafted by the California Law Revision Commission, or “CLRC.”  It would create an entirely new Part of the Civil Code, beginning with Section 6500. If passed and signed into law, SB 752 will apply  to common interest developments that are limited to commercial or industrial use by zoning or  covenants, conditions and restrictions (CC&Rs). The Davis-Stirling Act would no longer apply to commercial or industrial developments.

Although Davis-Stirling wouldn’t apply to commercial or industrial associations, the new Commercial and Industrial Common Interest Development Act would incorporate a good deal of reorganized Davis-Stirling. It repeats, almost verbatim, the provisions defining common interest developments, and the limits on use restrictions – like the limits on an association’s right to restrict displaying the flag. The bill also includes basic maintenance and assessment collection provisions.

It does not include the disclosure requirements that Davis-Stirling imposes on residential developments, or the election or open meeting provisions. The CLRC omitted these consumer-oriented provisions because business owners are usually less in need of their protections.

Commercial and industrial associations are an increasingly significant part of the community association industry, and range from small office condos to sprawling projects that include retail, industrial and office use. The new Act, if it becomes law, will simplify management of these projects. It may also provide a platform for new legislation in future years, which could benefit these associations and further distinguish them from residential associations.

John R. MacDowell
Fiore Racobs & Powers

John R. MacDowell is managing shareholder of Fiore, Racobs & Powers’ Orange County office and is a delegate to CLAC from the Orange County Regional Chapter of CAI. He serves as one of CLAC’s Legislative Co-Chairs.