California Homeowner's Association Laws

California Homeowner's Association Laws

In California, homeowners associations, or HOAs, are regulated by bylaws, which establish the method by which the institution will be conducted, and with a declaration of covenants, conditions and limitations. The declaration of covenants, conditions and limitations outlines the rules of this institution, which operates as a company. Both sets of files are often drawn up by lawyers during the beginning phases of development preparation. In this time period, the Department of Real Estate at California manages developments with HOAs until earnings begin. When the land has owners, there are numerous laws that California HOAs must adhere to, including the state’s company codes along with the Davis-Stirling Common Interest Development Act. Presently, no bureaus in the state regulate homeowners associations.

Homeowners Association Boards

Since homeowners association boards are often businesses, a board of directors is established to operate the institution. The Davis-Sterling Common Interest Development Act provides associations a framework for regulating themselves and handling disputes pertaining to the institution, according to the California Department of Real Estate. The act also specifies the functions and obligations of the HOA board. Duties include collecting evaluations, paying institution bills, managing institution finances, preparing and bringing budgets and running the institution efficiently.


Back in California, HOA laws shield volunteer association board members from personal liability as long as the member has acted in good faith, in the best interest of the homeowners association as well as all the care a reasonable man would use in a similar situation, based on California attorney Melissa C. Marsh. In addition, California law states that board members nevertheless cannot be held responsible if the HOA board has directors’ and officers’ insurance coverage, and damages are greater than such insurance covers.


HOAs levy prices on homeowners to pay for any maintenance and operating expenses incurred by the association. While the institution board has the capability to increase monthly dues, they cannot increase them by greater than 20 percent a year, unless the vast majority of homeowners accept that the measure, according the California Association of Homeowners Associations. All homeowners must be notified in writing of any dues increase at least 30 days, but not more than 60 days, prior to the increase begins. Before the start of each financial year, the board must make the budget people to homeowners locally at least 45 days, but not more than 60 days, prior to the first day of the financial year.


California HOA law allows the association board of supervisors to fine homeowners to get breaking institution rules or causing harm to common elements locally, but the institution board must follow certain guidelines, based on Melissa C. Marsh. The board must inform the homeowner of this alleged offense in writing at least 10 days prior to your board meeting. The homeowner has the right to address the board at the next board meeting, along with the board will ascertain if an offense was committed. If the board agrees to nice a homeowner for violating a principle, then the board should notify the person who owns the nice in writing with 15 days of the board’s ruling.

Liens and Foreclosure

In the event that a homeowner doesn’t cover a regular or special assessment within 15 days of the due date, then the operator’s account is deemed delinquent. Because of this, the owner could be fined a late fee equaling either $10 or 10 percent of the monthly dues amount, whichever is more, according to the California Department of Real Estate. If a delinquency is not cured, the institution can put a lien on the property in the total amount of the assessment and any penalties incurred during the procedure, including attorney’s fees. What’s more, California homeowners associations can lawfully foreclose on the property and file a judgment against the homeowner.

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