General information, not legal advice. Landlord-tenant rules change, and cities and counties can add their own. Check the current statute and local ordinances, and talk to a licensed attorney before you act.
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The short version
- Most California homeowners associations are governed by the Davis-Stirling Common Interest Development Act in the Civil Code.
- Board meetings are generally open to members, with advance notice and limited topics allowed in executive session.
- Assessment increases above certain limits need member approval, and collection and foreclosure follow strict notice steps.
- Architectural decisions must be in writing, reasonable and made in good faith, and state law protects several owner improvements.
- Many disputes must go through internal dispute resolution or alternative dispute resolution before a lawsuit.
Homeowners associations in California operate under one of the most detailed state frameworks in the country. The Davis-Stirling Common Interest Development Act, found in the California Civil Code, sets rules for how boards meet, vote, budget, collect assessments, enforce rules and resolve disputes.
This guide covers the parts of the law that board members and community managers deal with most. It is general information, not legal advice. The act is amended almost every year, and your association’s governing documents add their own requirements, so work with an attorney who represents California associations.
If you are new to association management, our HOA management guide covers the operational side.
Governing documents and their order
Every association runs on a stack of documents. When they conflict, a general order of priority applies:
- State and federal law
- The declaration, commonly called the CC&Rs, recorded against the property
- The articles of incorporation, if the association is incorporated
- The bylaws
- Operating rules adopted by the board
Operating rules must be consistent with the law and the documents above them. Davis-Stirling also requires the board to give members notice of proposed rule changes and an opportunity to comment before adopting most rules, except in emergencies.
Board meetings and elections
The Open Meeting Act within Davis-Stirling requires that board meetings generally be open to members. Members are entitled to advance notice of the time, place and agenda, typically at least four days ahead for regular meetings, and they have the right to speak during an open forum period.
Executive sessions are limited to specific topics, such as litigation, contracts with third parties, member discipline, personnel matters and hearings on assessment payment plans. Boards should not conduct business by email chains or private meetings outside of genuine emergencies, because that undermines the open meeting requirement.
Elections for directors and certain other matters use secret ballots and an independent inspector of elections, under election rules the association must adopt. Recent amendments have changed election procedures, including quorum rules and the option for electronic voting, so check the current requirements before each election.
Records and disclosures
Members have a right to inspect and copy association records, including financial statements, budgets, minutes, contracts and the membership list (subject to opt-out rights). The law sets deadlines for producing current and prior year records and limits what the association can charge for copies. Some items, such as personnel records and privileged legal communications, can be withheld or redacted.
Each year, associations must distribute an annual budget report and an annual policy statement within set windows before the fiscal year begins. A reserve study based on a visual inspection is required periodically, with a review of the study on a shorter cycle. Using HOA management software can make it easier to keep minutes, budgets and disclosures organized in one place.
Assessments and collections
Assessments fund common area maintenance, insurance, reserves and operations. If the board has complied with its budget and disclosure duties, it can generally raise regular assessments by up to 20 percent over the prior year and levy special assessments up to 5 percent of budgeted gross expenses without a member vote. Larger amounts usually need member approval, with exceptions for certain emergencies.
When an owner falls behind, collection follows a strict sequence:
- A written notice of the delinquency and the owner’s rights, sent before any lien is recorded
- An opportunity for the owner to request a payment plan and to meet with the board
- An offer of dispute resolution before certain enforcement steps
- Recording an assessment lien only after the required notice period
Foreclosure for assessment debt is restricted. It is not allowed below a minimum delinquency threshold, it cannot be based on fines or penalties alone, and owners have a right of redemption after a nonjudicial sale. Because errors can void a lien or expose the association to liability, most boards use an experienced collection firm or attorney.
Tip: Adopt and distribute a written collection policy each year, then follow it consistently. Uneven enforcement is a common source of disputes.
Architectural rules and protected improvements
Architectural review must follow a fair, reasonable and expeditious procedure. Decisions must be in writing, made in good faith, and not unreasonable, arbitrary or capricious. If the board denies an application, it should explain why and describe any reconsideration process.
California limits how far associations can restrict certain owner choices. Protected areas include, among others:
- Display of the United States flag and, within limits, noncommercial signs
- Solar energy systems and electric vehicle charging stations, subject to reasonable restrictions
- Water-efficient and drought-tolerant landscaping
- Keeping at least one pet, subject to reasonable rules
- Accessory dwelling units under state housing laws
- Long-term rentals, which associations cannot generally prohibit
Owner rights and dispute resolution
Before imposing a fine or suspending privileges, the board must give the owner written notice and an opportunity for a hearing. Fines must follow a published schedule of penalties.
Davis-Stirling encourages resolving conflicts outside court. Associations must offer an internal dispute resolution process, often called meet and confer, at no cost to the owner. For many lawsuits to enforce the governing documents, the parties must first offer alternative dispute resolution such as mediation. Skipping these steps can affect a party’s ability to recover attorney fees.
Verify current law
Davis-Stirling is amended frequently, and court decisions shape how it is applied. Cities and counties can also regulate issues such as short-term rentals, and your CC&Rs and bylaws add their own requirements. Confirm the current statute text, review your governing documents and consult an attorney who represents California associations before acting.
Related reading: Texas HOA laws, California landlord-tenant rights, the definitions of condominium and common area maintenance, and TenantLoop’s HOA mode.
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Asked by landlords in this state.
Does the Davis-Stirling Act apply to commercial associations?
Generally no. Commercial and industrial common interest developments are covered by a separate act. Davis-Stirling covers residential common interest developments such as condominiums and planned developments.
Can a California HOA ban owners from renting their homes?
State law limits an association's ability to prohibit or unreasonably restrict long-term rentals, although associations can still regulate short-term rentals. Check the current statute and your governing documents before adopting or enforcing a rental rule.
How much can an HOA board raise regular assessments without a vote?
If the board has met its budget and disclosure obligations, it can generally raise regular assessments by up to 20 percent over the prior year without member approval. Larger increases usually need a member vote, with limited emergency exceptions.
Can an owner see the association's records?
Yes. Members have a statutory right to inspect and copy many association records within set deadlines, subject to privacy limits for items such as personnel files and certain member information.