When SB 323 went into effect on January 1, 2020, it prohibited term limits for directors of homeowner associations. The California legislature subsequently amended the Davis-Stirring Act to permit associations to establish term limits for directors.

Amending HOA bylaws to establish term limits requires a vote of the membership using the two envelope, secret ballot procedure. Amending Election Rules to permit term limits can be done by the board without a vote of the membership as long as the procedure for amending or establishing operating rules is followed. By law, Election Rules cannot be inconsistent with an association's bylaws.

Most HOAs are too small to adopt strict or absolute term limits which allow a director to serve one, two, or three terms and then forever bars them from running for the board.

Most community associations that adopt term limits, adopt modified term limits. For example, they may adopt term limits consisting of a maximum of two consecutive terms.

Amendments establishing term limits are far more likely to be approved if they go into effect several years after they are approved. That way, current board members are more likely to support such an amendment.