California HOA Laws: What Every Homeowner and Board Member Should Know

If you own a home in California or sit on an HOA board, you already know the rulebook is about as easy to read as a tax code manual. And just when you finally start to get a handle on it, Sacramento decides to toss in a few new curveballs. The past couple of years, 2024 and 2025, have been especially busy, with lawmakers tweaking everything from how you can fine a homeowner (no more excessive penalties for a flower pot in the wrong place) to how elections are run, meetings are held, and budgets are planned.

For homeowners, that means more rights and a few new responsibilities, which you’ll want to understand before your next HOA letter shows up. For board members and property managers, it’s about staying compliant without losing your mind (or your weekends) in legal paperwork. This guide is all about the most important recent California HOA law changes.

Key California HOA Governing Laws

California HOAs operate under several main laws and governing documents.

1. Davis–Stirling Common Interest Development Act

This is the primary legal framework governing HOAs in California. It's codified in the California Civil Code, starting at Section 4000, which covers a broad range of topics, including:

• Board elections and meetings

• Budgets and financial oversight (including reserve studies)

• Assessments and their collection

• Enforcement mechanisms, dispute resolution, recordkeeping, and construction defect processes

2. Nonprofit Mutual Benefit Corporation Law

Most California HOAs are organized as nonprofit mutual benefit corporations. This law, part of the California Corporations Code (§7110 et seq.), governs their structural and procedural requirements, such as filings and governance standards.

3. Fair Employment and Housing Act (FEHA)

This law prohibits discrimination based on protected characteristics, such as race, religion, disability, familial status, and more, in housing contexts.

HOAs must comply with FEHA, especially in enforcement actions, rulemaking, and association governance.

4. Governing Documents (CC&Rs, Bylaws, Articles, and Operating Rules)

• CC&Rs (Covenants, Conditions, and Restrictions) are filed with the county recorder and constitute the “constitution” of the HOA, defining property use, restrictions, maintenance responsibilities, and more. Conflicts with state or federal law render parts.

• Bylaws outline how the association is run, including elections, quorums, board roles, and membership voting.

• Operating Rules cover day-to-day matters (e.g., parking, pool use, rentals), are easier to amend, and must align with both CC&Rs and California law.

• Hierarchy of authority:

  1. State laws (Civil Code/Davis-Stirling)

  2. Recorded CC&Rs

  3. Articles of Incorporation

  4. Bylaws

  5. Operating Rules

HOA Governance, Elections, and Meetings

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Before knowing the recent law changes, it’s important to understand how California HOAs are structured and run.

1. Association Governance

• California Corporations Code §7140: Grants powers to nonprofit mutual benefit corporations, including HOAs, unless restricted by the CC&Rs.

• California Civil Code §4805: Grants powers to HOAs under the Davis–Stirling Common Interest Development Act.

• California Corporations Code §5231: Sets fiduciary duty standards for directors, requiring them to act in good faith, with reasonable care, and in the best interests of the association.

• Board Responsibilities

An HOA is managed by its board of directors, as stated in the governing documents (CC&Rs, bylaws). Unless the CC&Rs say otherwise, the HOA can use the powers given to nonprofit mutual benefit corporations and any additional powers under the Davis–Stirling Act. The board’s core responsibilities include:

• Maintaining common areas.

• Enforcing CC&Rs through reasonable rules.

• Adopting budgets and reserve funding plans.

• Keeping accurate records.

3. Board Elections

The law references for board elections.

• California Civil Code §§5100: Sets rules for HOA elections, including secret ballot requirements and timelines.

• California Corporations Code §§7210–7222: Covers director elections, vacancies, terms, and voting rights.

Election Process Requirements

All elections for directors (and certain other member votes like assessment increases or CC&R amendments) must be conducted by secret ballot.

Each director’s seat must be elected at least once every four years (or sooner if a term ends). Members must receive:

• Notice of open positions.

• A nomination period.

• A balloting period.

If the number of candidates matches the number of open seats, the board may seat them by acclamation without balloting.

Quorum and voting requirements are set in the bylaws and statutes. For example, reconvened meetings may need only 20% member presence to meet quorum.

Board Meetings & Transparency

California Civil Code §§4900–4955: The "Open Meeting Act,” requiring most board meetings to be open to owners and properly noticed.

• California Civil Code §5310: Requires annual distribution of budgets and financial statements to members.

• California Civil Code §§5550: Requires reserve studies every three years and adequate funding, unless approved otherwise by a member vote.

• California Civil Code §5800: Sets rules for HOA insurance coverage and board liability protections.

Meeting Rules

Most board meetings must be open to members, except closed executive sessions (legal, personnel, or member discipline matters).

Boards must post agendas in advance and record minutes for members. Boards are required to:

• Adopt an annual budget and share it with members.

• Conduct reserve studies to ensure future repairs and replacements can be funded.

• Maintain proper insurance to protect the association and board members.

• Collect assessments and oversee all association operations in the members’ interest.

Key Election and Legal Updates for California HOAs

Recent legislative changes are reshaping how California HOAs run elections, qualify board members, and handle disputes.

1. Electronic Ballots (AB 2159, 2023-2024)

HOAs may conduct director elections, recalls, and CC&R amendments by secure electronic secret ballot. Homeowners can opt in or out by written notice at least 90 days before an election, and the association must adopt any e-voting rules at least 90 days in advance.

Tip: The Board should work with legal counsel to adopt e-voting procedures, allow members to opt out/opt in, and ensure ballot system integrity.

2. Election Quorum (AB 1458 and AB 2460, 2023–2024)

When a board election doesn’t reach quorum the first time, the follow-up meeting can still move forward. After 20 days or more, only 20% of members need to attend for a quorum, unless the governing documents allow an even lower percentage. Notice of the reconvened meeting must be sent 15 days before. 

Tip: Include a note in election notices about the reduced quorum rule, or consider amending your bylaws to remove high quorum requirements.

3. Candidate Qualifications (AB 1746, 2022)

The rule makes it clear that current board members must meet the same qualifications as anyone running for a seat. It also blocks anyone from serving longer than the allowed term limits written in the governing records.

Tip: Review and update election rules to specify qualifications (and any term limits) consistent with state law.

4. Small Claims Threshold (SB 71, 2023)

Raises California small-claims limits effective Jan 1, 2024. Individuals can now sue up to $12,500 (was $10,000), and HOAs (as corporations) up to $6,250 (was $5,000). 

Tip: Boards can use the higher limits to pursue unpaid assessments without expensive litigation; homeowners also benefit from higher caps if suing an HOA.

Rules for Virtual HOA Meetings in California

The California board set the following rules for HOA meetings.

Legal Framework & Enabling Statute

Assembly Bill 648 added Civil Code § 4926, which allows HOA boards and membership meetings to be held entirely virtually, without requiring a physical location, so long as specific safeguards are met.

Mandatory Requirements for Virtual Meetings (§ 4926)

To conduct a fully virtual meeting, HOAs must ensure the following:

1. Clear Technical Instructions: The notice must include precise details on how to join and participate, e.g., platform links, meeting IDs, and passwords

2. Technical Support Contact: Provide a telephone number and email of someone available to assist attendees before and during the meeting

3. Individual Delivery Option: Remind members that they can request meeting notices individually (e.g., via print or mail), and include instructions for doing so.

4. Equal Participation Rights: Every director and member must have the same ability to participate remotely as they would in an in-person meeting, hearing, discussing, and voicing their input.

5. Roll Call Voting: All director votes must be conducted by roll call, each director’s name is called, and their vote is recorded individually.

6. Telephone Participation Option: Attendees must have the option to participate by phone if they cannot access video or internet platforms

Hybrid & Emergency Meeting Options

• Hybrid Meetings Allowed: Under prior law (§ 4090), boards could conduct meetings with directors attending virtually while still providing a physical location for members to observe and participate

• Director Virtual Attendance: Board members may attend (and be counted as present) by teleconference or video, as long as they and all other directors can hear each other.

• Emergency Situations: In emergencies (e.g., natural disasters, pandemics), fully virtual meetings are permitted as long as proper instructions are provided

HOA Fine Limits and Homeowner Protections

A major new law, according to HOA Fines Capped (AB 130, 2025)(effective July 1, 2025), amends the Davis–Stirling Act to cap HOA fines at $100 per violation (barring health/safety exceptions). These rules revise the rules from California Civil Code section 5855.

It also bans charging interest or late fees on fines and prevents disciplining homeowners if they cure a violation before the hearing. Importantly, homeowners can request internal dispute resolution if they disagree with a fine.

Boards must revise fine schedules (no more than $500 daily fines) and ensure fair hearing procedures. These changes give homeowners stronger protections and a clearer process to appeal violations.

Rule Enforcement

Boards must continue to adopt rules consistently and follow notice/hearing requirements (28-day notice for new rules). Violations must be documented and enforced uniformly. 

But one thing to remember is that not every HOA rule is legally valid. In fact, many boards unknowingly try to enforce provisions that courts have already deemed unenforceable.

Tip: After AB 130, review all enforcement policies and set flat $100 fines (or define if a violation qualifies as health/safety). Stop adding interest to late fines, and include IDR options. Consult legal counsel to amend policy or CC&Rs if needed. 

Budget and Reserve Funding Rules for California HOAs

• Assessment Increases (AB 572, 2023): For new communities (first CC&Rs recorded Jan. 1, 2025 or later) with deed-restricted affordable housing, regular assessment hikes on those affordable units are capped at 5% + CPI (no more than 10% per year). Boards of new developments must budget accordingly and keep increases low for deed-restricted units. Homeowners in affordable units benefit from predictable HOA dues.

• Utility Repairs & Emergency Funding (SB 900, 2024): SB 900 adds and amends Civil Code §§4775, 5550, 5610, etc. New rules include: 

  • HOAs must repair common-area gas/water/electric interruptions within 14 days of discovery 

  • Common-area utility systems are now “major components” in reserve studies, so they must be funded for replacement.

  • If reserves are insufficient for an emergency (health/safety or hazard), the board may levy an emergency assessment without a membership vote after adopting a resolution explaining the need.

Tip: Update reserve studies to include utility lines, and prepare board resolutions for emergencies. Homeowners should expect that dues may temporarily increase in crises but only under the emergency rules.

Standard Budget Rules

As before, HOAs must prepare an annual budget, conduct a reserve study at least every 3 years, and provide financial disclosures to members. Boards should ensure these requirements are met under the Davis–Stirling Act even as they adjust for new laws.

New HOA Rules for ADUs, Balconies, and Water Use

California law now prohibits HOAs from enforcing rules that unreasonably restrict, prohibit, or impose excessive costs on the construction of Accessory Dwelling Units (ADUs) or Junior ADUs. They also cannot impose additional utility connection fees for ADUs, and must adhere to state-mandated setback minimums and parking rules, such as allowing ADUs to be built no more than four feet from side or rear lot lines and not requiring replacement parking when converting garages or carports.

Senate Bill 326 (“Balcony Bill”) requires that condominium associations and similar common interest developments inspect elevated, load-bearing exterior structures, like balconies, decks, elevated walkways, stairs, and railings, by January 1, 2025, and then every nine years thereafter. The inspections must be conducted by a licensed architect or structural engineer (with potential expansion to include civil engineers under legislation), include waterproofing systems, and lead to timely reporting and necessary repairs.

Under Assembly Bill 1572, effective January 1, 2024, HOAs must cease using potable (drinking) water to irrigate nonfunctional turf, decorative grass areas not used for recreation, by January 1, 2029. Common areas with over 5,000 square feet of such turf must also begin self-certifying compliance every three years starting in 2031.

California HOA Homeowner Rights & Responsibilities

California law has different rules and responsibilities for homeowners.

Rights of HOA Homeowners

Under California law, HOA rules must follow state statutes. Homeowners retain the right to attend open board meetings and vote (by paper or electronic ballot).

According to AB 130, your worst possible fine for a minor rule violation is $100 (unless it poses a health/safety risk). You have the right to an internal dispute resolution process if you disagree with a fine.

You may also inspect association records and reserve studies as before (Civil Code §§5200–5210); the law supersedes any contradicting rule. If you own a deed-restricted affordable unit, your HOA cannot raise your regular dues by more than 5% + CPI (max 10%) each year (under AB 572)

Responsibilities of HOA Homeowners

1. Homeowners must comply with governing documents and pay assessments on time (though AB 130 now bans late fees/interest on enforcement fines).

2. When improving your property (additions, fences, ADUs), follow the HOA’s approval process. If your community allows separate ADU sales (AB 1033), be aware of any deed restrictions in your governing documents. 

3. Participate in meetings and elections to make your voice heard, and read notices from your HOA so you don’t miss important deadlines or opt-in opportunities (for e-voting or remote meeting notices).

How to Dispute HOA Rules That Conflict With State Law?

When an HOA rule seems to go against state law, homeowners have the right to fight back in court. A good example is charging more than $100 for a minor violation or blocking residents from attending open meetings. In California, courts follow the Davis-Stirling Act closely. Any rule that cuts down a homeowner’s legal rights usually doesn’t hold up.

When Can the California Attorney General Intervene in HOA Matters?

The California Attorney General (AG) has limited authority to step in when a homeowners' association violates the rights of its members under the California Corporations Code. Since most HOAs are organized as nonprofit mutual benefit corporations, the AG can act when the HOA fails to follow corporate governance laws, not every day neighborhood disputes.

This means the Attorney General will only consider complaints involving issues such as:

1. Not holding meetings: Skipping required member or board meetings, or refusing to call a special meeting when requested.

2. Improper meeting notices: Failing to give members timely or proper notice about meetings.

3. Lack of quorum compliance: Conducting business without the required number of members present.

4. Ballot and voting violations: Not providing proper ballots, proxies, or following cumulative voting rules.

5. Election process failures: Not providing reasonable ways for members to nominate or elect directors.

6. Recordkeeping issues: Failing to maintain accurate books, minutes, member lists, or tampering with records.

7. Annual reports: Not preparing or providing required annual reports to members upon request.

8. Member access rights: Refusing lawful inspection or copies of records, books, or membership lists.

9. Director access: Denying directors the right to inspect association records.

FAQs

Can my HOA Still Hold Virtual Meetings in California?

California permits HOAs to hold virtual meetings if properly noticed, accessible, and consistent with Davis-Stirling Act requirements.

Does California Law Supersede HOA Rules?

Yes, state law always overrides HOA rules. Associations cannot enforce provisions conflicting with California statutes or federal regulations.

Are California HOA Governing Documents Available to the Public?

Yes, homeowners may request access to governing documents. HOAs must provide them within statutory timeframes upon written request.

When HOAs Are Not Permitted to Charge Fines?

HOAs cannot charge fines without a clear governing authority, due process hearings, and proper notice consistent with state law.

What Happens if You Don't Pay HOA Fines in California?

Unpaid fines may accrue late fees, lead to lien placement, collection actions, or potentially escalate into foreclosure proceedings.

How HOA Unlimited Can Help

California HOA laws keep changing, and it’s easy for boards to feel buried in rules and paperwork. HOA Unlimited helps take that weight off your shoulders. We step in as a partner to guide your board through elections, fine policies, budgeting, and compliance updates.

A single gap can leave your community open to legal trouble. Call 415-547-0337 today and let’s strengthen your HOA and give your community peace of mind.