RULES OF INTERPRETATION

When reading the Davis-Stirling Act, you should apply the following general rules of interpretation:

1.  Statute Overrides CC&Rs. If the statute uses words such as "notwithstanding any provision of the governing documents to the contrary" or any similar language, the statute overrides the association's CC&Rs. For example, Civil Code §1366(b) starts with "Notwithstanding more restrictive limitations placed on the board by the governing documents . . . " and then goes on to set a 20% limit on raising regular dues and a 5% limit on special assessments. This means that if your CC&Rs have a 10% cap on regular dues and a 3% cap on special assessments, they were nullified by statute and the higher limits of 20% and 5% now prevail. Another example is found in Civil Code §1360.5(a):

No governing documents shall prohibit the owner of a separate interest within a common interest development from keeping at least one pet . . .

2.  Statute Defers to CC&Rs. If the statute uses words such as "Unless the declaration otherwise provides . . . " or similar language, the CC&Rs will prevail. For example, Civil Code §1362 states:

Unless the declaration otherwise provides . . . the common areas are owned as tenants in common, in equal shares, one for each unit or lot.

Frequently, highrise condominiums will assign ownership interest (and the payment of dues) according to the square footage of the unit. If the CC&Rs were silent on the issue, then this statute would assign ownership in equal shares. Another example is found in Civil Code 1365.5(a):

Unless the governing documents impose more stringent standards, the board of directors of the association shall do all of the following: . . .

3.  Statute is Silent. Frequently, the Davis-Stirling Act is silent on which controls, the statute or the CC&Rs, and you must decide from the general language of the statute which controls. For example, Civil Code §1363(a) does not contain any of the language described above, nonetheless, it clearly controls because of its use of the word "shall":

A common interest development shall be managed by an association which may be incorporated or unincorporated. The association may be referred to as a community association.

Updated 9/24/2007