Thursday June 12, 2025
Whether you're a board member trying to manage community finances or a homeowner looking to understand how rules are enforced, understanding California HOA laws is essential. In this article, we’ll break down core HOA laws and highlight 2025 updates in key areas like board governance, financial disclosures, and inspection requirements.
This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
Key California HOA laws
Several key laws shape how HOAs operate in California:
- Davis-Stirling Act: Covers board elections, board meetings, budgets, rule changes, and homeowner rights.
- Nonprofit Mutual Benefit Corporation Law: Since many HOAs are structured as nonprofit corporations, this law sets rules for board structure, governance, and filings.
- Fair Employment and Housing Act (FEHA): Protects homeowners from discrimination based on factors like race, religion, disability, and family status.
- Local ordinances: HOAs must also follow city and county rules for building codes, landscaping, safety, and other issues.
- Governing documents: Each HOA must follow its own CC&Rs, bylaws, and rules, as long as those documents don’t conflict with state or federal law.
Staying on top of these evolving legal requirements can feel overwhelming, especially for volunteer-led boards. Partnering with a
professional property management company like FirstService Residential can give your board the guidance, tools, and day-to-day support needed to navigate these rules with clarity and confidence.
Homeowner rights
Under the Davis-Stirling Act, homeowners in California HOAs typically have the right to attend open board meetings, vote in elections, request association records, and receive annual financial disclosures. The law also gives homeowners the ability to review governing documents and reserve funding plans.
HOA rule enforcement
Creating and enforcing clear rules is one of the most important roles of an HOA board. In California, new rules must be consistent with the association’s governing documents and state law. Boards have the authority to adopt new rules, amend existing ones, and apply them consistently, but if that process doesn’t follow the proper legal steps, it could be considered an
unenforceable HOA rule.
Before adopting a new rule or changing an existing one, the board must provide homeowners with at least 28 days’ notice and a chance to submit feedback. Once adopted, the rule should be distributed to all members and kept on file with the association’s official operating rules.
Enforcement should be fair, consistent, and well-documented. The most effective boards view rule enforcement as a way to protect property values and maintain quality of life, not simply as a disciplinary tool. Providing homeowners with clear communications, timelines for compliance, and a chance to respond can lead to better outcomes.
Financial rules, such as those related to dues,
increasing assessments, or contributions to reserves, must also align with California law. Reserve funding is especially important. Boards are required to conduct a reserve study every three years and review it annually to guide long-term planning.
2025 updates to California HOA laws
This year, another wave of statutes has reshaped how California common interest communities are governed, including new regulations on electronic voting, utilities, and balcony inspections.
Assembly Bill 2159: Electronic voting
HOAs may run director elections, recalls, and governing document amendments by secure electronic ballot. Members may opt out (or opt in) by giving written notice no later than 90 days before the election. Election operating rules themselves must be adopted or amended no fewer than 90 days before balloting.
Read Assembly Bill 2159 here.
Assembly Bill 2460: Election quorums
If the initial election fails to reach quorum, a reconvened meeting held at least 20 days later must have a statutory quorum of 20 percent of the membership, unless the association’s governing documents already allow a lower threshold. Notice of the reconvened session must be sent to members at least 15 days in advance.
Read Assembly Bill 2460 here.
Senate Bill 900: Utility interruptions and emergency funding
When gas, water, heat, or electricity lines that originate in the common area fail, boards must begin the repair process within 14 days. If reserves are insufficient, the board may borrow or levy an emergency assessment without a membership vote after adopting and distributing a resolution explaining the need. Utility lines now count as “major components” in reserve studies.
Read Senate Bill 900 here.
Assembly Bill 2114: Expanded list of qualified balcony inspectors
Civil engineers join architects and structural engineers as qualified inspectors under the “
Balcony Bill.” This widens the talent pool as the first inspection deadline hit on January 1, 2025. Associations that missed the cut-off should schedule inspections immediately and document efforts.
Read Assembly Bill 2114 here.
Assembly Bill 572: Affordable unit assessment caps
As of January 1, 2025, new associations with more than 20 deed-restricted affordable units must limit annual regular assessment increases for those units. Increases can’t exceed 5% plus the regional Consumer Price Index, with a maximum cap of 10% per year.
Read Assembly Bill 572 here.
Frequently asked questions about California HOA laws
How much power does an HOA have in California?
An HOA has significant authority to regulate community standards, collect dues, enforce rules, and
maintain common areas. However, its power is limited by state and federal law and must align with its own governing documents.
Who oversees California HOAs?
There is no centralized state agency exclusively overseeing HOAs. However, the California Secretary of State oversees filings related to HOAs incorporated as nonprofits, and civil courts may enforce laws in disputes involving an HOA. HOAs are largely self-governing, which makes transparency and homeowner engagement essential.
Does California law supersede HOA rules?
Yes. If an HOA rule conflicts with California law, the law takes precedence. For example, any rule that limits a homeowner’s rights under the Davis-Stirling Act or FEHA is likely unenforceable. Similarly, HOA financial policies must align with state-mandated reserve funding requirements and disclosure standards.
How FirstService Residential can help
At FirstService Residential, we provide tailored property management services for California HOAs and community associations of all sizes. From financial planning and reserve studies to day-to-day operations and compliance support, our local teams can help board members simplify their responsibilities and strengthen their communities.
Contact us today to learn how we can support your association.