Developer Control and the infamous AB 192

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Much confusion and misinformation exist around developer control of HOAs and the now infamous legislation, AB 192 (2015). First know I believe AB 192 is an absurd piece of special interest legislation that provides for developer control of an HOA board while holding only a 10% interest in that community. AB 192 lowered the threshold for mandatory developer control change from an arguably already low 25% interest to an absurdly low 10%. Effectively, and with little effort, a developer can expect to control an HOA as long as it wishes denying owners the right to elect all those that represent them.

 

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