BY KUMAR S. RAJA, ESQ.
This article first appeared in the CAI San Diego Community Insider Magazine, Fall 2025 Issue.
Much like SB-326, which was adopted following the Berkeley balcony collapse in 2015, the origin of SB-900 comes from another real-world event. It was adopted after a condominium complex suffered a gas outage that spanned several months. With no hot water or heat, many of the 600 residents in that community resorted to microwaves, electric stoves, and portable showers. One podcast speculated that the unlivable environment was caused, in part, by poor reserve planning and insufficient reserve funds. Rising from that crisis, SB-900 emerged as a response from lawmakers to address future utility disasters.
Before SB-900, Civil Code § 4775 provided that associations were required to repair, replace, or maintain common area components, but if a utility outage (gas, water, etc.) extended into units, responsibility could be unclear or fall to the homeowner. Now, HOAs are expressly responsible for repairs or replacements of utility services (gas, heat, water, electricity) that originate in the common area, even if the issue extends into a unit’s separate interest or exclusive-use common area, unless otherwise provided by the project’s governing documents or a utility provider’s pre-existing obligation. Importantly, SB-900 does not transfer maintenance and repair responsibilities to or from associations or relieve homeowners of their duties under the governing documents. In the event of a common area disruption, boards of directors must begin the process to make repairs to restore utility service within fourteen (14) days.
SB-900 anticipates that many boards of directors may possess procedural difficulties and funding shortfalls for addressing utility disruptions, particularly when the law now requires quick action when utility failures occur. Civil Code § 4775 was further revised to streamline the decision-making process for boards of directors and the sourcing of funds, if operating and reserve funds are insufficient to cover the costs of utility repairs. In brief, the law now provides for a reduced quorum requirement if boards are not able to meet within fourteen (14) days to vote to commence the repair process – and
that quorum is the total number of directors present at the first meeting after the 14th day (i.e., potentially one (1) board member). Voting by electronic means, such as email, is now permitted for board votes to initiate utility repairs or replacements.
As to repair funding, Civil Code § 4775 provides that HOAs may secure bank loans to cover the costs of utility repairs without member approval and levy emergency assessments upon the members to fund loan repayment following execution of a board resolution. To align with that change, SB-900 amended Civil Code § 5610 to state that emergency assessments now also include other hazardous conditions or circumstances on the property — that is, utility disruptions that cause danger to the community.
Beyond short term funding flexibility, SB-900 recognizes that communities likely do not possess long term funding strategies for utility repairs. Previously, Civil Code § 5550, the law describing reserve component requirements, generally referenced major components. Now, that section defines major components to include gas, water, and electrical service lines which are the responsibility of the association.
To comply with SB-900, community managers should focus on proactive planning and organization, in consultation with the association experts. Engage the association’s legal counsel to identify the extent of the association’s ownership and responsibility for common area utility lines, which will help avoid disputes with homeowners, and then develop applicable maintenance procedures. Consulting with the association’s qualified reserve analyst on a regular basis is critical. It is important to ensure that the reserve professional
receives all relevant information regarding community projects and repairs. Organizing vendor files (consider Dropbox) to include bids and invoices, among other things, will assist the analyst with developing accurate utility repair and replacement costs for the reserve study. Another best practice is to develop a utility emergency response toolbox, which includes procedures to respond to disruptions, an emergency contact list of utility providers to ensure fast mobilization, and maps of existing utilities throughout the association.
Don’t let the response toolbox collect dust. The tools inside won’t help unless boards of directors know their value. Community managers and boards should work together to understand the importance of the reserve study in the context of SB-900, and why it’s critical to annually review the same with their reserve analyst through site visits and multiple meetings, if necessary.
For community managers and boards of directors, the message is clear: proactive planning is essential. Legal counsel, reserve analysts, and detailed records are no longer just best practices; they are the foundation of compliance. SB 900 reminds us that when the lights go out – or the heat fails – disaster prevention will depend upon how well you’ve prepared in advance. With the right tools, planning, and professional guidance, community mangers can help their boards keep the power on – both literally and figuratively.
