THE BENEFITS AND CHALLENGES of ELECTRONIC VOTING for CALIFORNIA HOMEOWNERS ASSOCIATIONS FOLLOWING the PASSAGE of AB2159

BY: KEVIN LANGLEY OF THE HOA ELECTION GUYS

California’s Assembly Bill 2159 (AB2159) was enacted and is effective January 1, 2025, introducing significant updates to voting procedures within Common Interest Developments (CID). One of the most impactful changes is the ability for boards to adopt procedures utilizing electronic voting, which presents numerous benefits for CID boards and their members. Here’s an overview of how electronic voting can enhance California’s CIDs—and some challenges to consider as well.

POTENTIAL BENEFITS of Electronic Voting for CIDs

1. Increased Participation

One of the primary advantages of electronic voting is the potential for increased participation among homeowners by making it easier to participate in elections, meetings, and decision-making processes.

2. Convenience and Accessibility

Electronic voting systems are designed to be user-friendly and accessible. Homeowners can easily access the voting platform via computers, tablets, or smartphones, making it simpler for everyone to participate, regardless of their technological proficiency. This convenience is especially beneficial for those with mobility limitations or those who travel frequently, as they can engage in their community’s matters without the need to attend in person.

3. Cost-Effectiveness

Implementing electronic voting can potentially lead to significant cost savings for CIDs. Traditional voting methods often involve printing ballots, mailing them, and remailing when the ballot packages are overlooked or lost. By transitioning to an electronic system, CIDs should be able to reduce these costs substantially, allowing funds to be allocated to other community improvement projects or services.

4. Enhanced Security and Transparency

AB2159 emphasizes the importance of secure voting practices. Electronic voting systems can incorporate advanced security measures, such as encryption and authentication, to protect against fraud and ensure the integrity of the vote. Additionally, many electronic platforms offer transparent processes that allow for real-time monitoring and verification, giving homeowners confidence in the legitimacy of the voting outcomes. One well received security measure will be that members will no longer need to send their signature on an envelope exposed for all the world to see.

5. Streamlined Processes

Electronic voting can simplify the entire voting process. From sending out notices to tallying votes, the system can automate many administrative tasks that typically consume significant time and resources. This efficiency not only benefits CID boards, but also enhances the overall experience for homeowners, who can expect more timely results and updates on important issues.

6. Environmental Benefits

Transitioning to electronic voting aligns with eco-friendly practices by significantly reducing paper waste. By minimizing the need for printed materials, CIDs can contribute to environmental sustainability efforts, in theory, appealing to the growing number of homeowners who prioritize green initiatives.

7. Adaptability for Future Needs

As technology continues to advance, electronic voting systems can be updated to accommodate new features and security protocols. This adaptability helps CIDs to remain current with best practices in voting and governance, continuously improving the homeowner experience.

8. Proxy Reduction

With members able to vote electronically from anywhere in the world, this should significantly reduce the use of proxies. Such a change may serve to simplify the voting process and instead promote direct engagement from homeowners who will be able to cast their own votes independently.

CHALLENGES AND CONSIDERATIONS with Electronic Voting

While electronic voting offers many benefits, CIDs should also be mindful of potential challenges in implementing this new system.

1. Updated Election Rules Required

To implement electronic voting, CIDs will be required to first revise their election rules to comply with AB2159’s guidelines. This step will involve careful planning and communication with members to ensure understanding and compliance. Boards who wish to implement electronic voting for their communities should seek the assistance and guidance of their legal counsel in updating their election rules.

2. Additional Disclosure Requirements

Associations will be required to maintain a voting list that identifies which members will vote electronically and which will vote by written ballot. This information must be included in the annual disclosure, adding a new layer of administrative responsibility for boards and community managers.

3. Extended Election Cycles

In some circumstances, in order to meet certain requirements under the new provisions of AB2159, CIDs may need to start their election cycles earlier and allow for longer periods of notice. For instance, members must be provided individual notice about their balloting options at least 120 days prior to an election.

4. Early Voting Method Selection

Members are not permitted to receive both a paper ballot and an electronic ballot. Members must decide how they will cast their vote (either by paper ballot or electronically) at least 90 days prior to the election. Members who have received a paper ballot cannot vote electronically, and members who have received a paper ballot cannot change their mind and instead opt for an electronic ballot while an election is underway.

Overall, the passage of AB2159 authorizing CIDs to utilize electronic voting marks a pivotal moment in the industry. The benefits, ranging from increased participation and convenience to enhanced security and cost-effectiveness, make a compelling case for this modern voting solution. As CIDs consider implementing electronic voting, many will not only be able to streamline their operations but also foster a more engaged and connected community. Embracing this change is not just an opportunity; it is a step towards a more inclusive and efficient governance model for many California homeowners.

Kevin Langley is the owner of HOA Elections Guys, Inc.