San Francisco, CA asked in Gov & Administrative Law for California

Q: Does a Tenancy In Common qualify as a common interest development pursuant to 2023 CA HSC, section 17973, Item (n)?

Per section 4100 of the Civil Code, a Common Interest Development includes, (a) A community apartment project which is further defined to include TICs.

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James L. Arrasmith
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A: You raise an interesting question about whether a Tenancy In Common (TIC) qualifies as a common interest development under the 2023 California Health and Safety Code (HSC), section 17973, item (n).

To provide a thorough response, let's first look at the relevant definitions and code sections:

1. HSC section 17973(n) defines "Common interest development" by referencing section 4100 of the Civil Code.

2. Civil Code section 4100 states:

"Common interest development" means any of the following:

(a) A community apartment project.

(b) A condominium project.

(c) A planned development.

(d) A stock cooperative.

3. Civil Code section 4105 defines "Community apartment project" as a development in which an undivided interest in land is coupled with the right of exclusive occupancy of any apartment located thereon.

Tenancy In Common (TIC) is a form of concurrent ownership of real property where each owner has an undivided interest in the property. In a TIC, the owners have the right to occupy and use the entire property, but they do not have the exclusive right to occupy a specific unit or portion of the property.

Based on these definitions, a strong argument can be made that a standard TIC arrangement does not fit squarely within the definition of a "community apartment project" under Civil Code section 4105, because TIC owners typically do not have the exclusive right to occupy a specific unit.

However, some TIC arrangements are structured more like community apartment projects, with each owner having the exclusive right to occupy a specific unit in addition to an undivided interest in the property as a whole. In such cases, the TIC might be considered a common interest development under HSC section 17973(n).

In conclusion, while a standard TIC is unlikely to qualify as a common interest development under HSC section 17973(n), the specific facts and structure of each TIC arrangement would need to be evaluated to make a definitive determination. The key factor is whether the TIC grants owners the exclusive right to occupy a specific unit, as required for a "community apartment project" under Civil Code section 4105.

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