The Davis-Stirling Act in short
The Act took effect in 1986 and is the main body of law for condominiums, planned developments, stock cooperatives and community apartment projects in California. The Assembly Housing and Community Development Committee counts more than 50,000 common interest developments in the state, ranging from three to 27,000 units, with about 4.7 million housing units. By the committee's figures, 36% of Californians and about 65% of homeowners live in one.
The Act sits on top of each association's own governing documents: the declaration of covenants, conditions and restrictions (CC&Rs), the bylaws and the operating rules. Where the documents and the Act conflict on a protected right, the Act wins. The Act controls dues increases even if the CC&Rs are more restrictive, for example.
One point surprises many owners: no state agency regulates HOAs day to day. The Department of Real Estate reviews a new development's documents before the first sale, but its brochure on common interest developments says that once sales start its role is limited to the developer's obligations and does not include stepping into association disputes. Owners enforce the Act themselves, through internal dispute resolution, mediation, small claims court or a lawsuit.
Davis-Stirling rules on dues and special assessments
Regular assessment increases: the 20% cap (Civil Code 5605)
The board can raise regular dues by up to 20% over the previous fiscal year without a member vote, even if the CC&Rs set a lower limit, provided it has distributed the annual budget report on time. Anything above 20% needs approval from a majority of a quorum of members at a meeting or election, and a quorum here means more than 50% of the members.
Special assessments: the 5% limit
Without a member vote, special assessments in a fiscal year may not add up to more than 5% of the association's budgeted gross expenses for that year. Larger special assessments need the same majority-of-a-quorum approval.
Emergency assessments (Civil Code 5610)
The 20% and 5% limits do not apply in three emergency situations: an extraordinary expense ordered by a court; an extraordinary expense to repair something the association maintains where a threat to personal safety is discovered; and an extraordinary repair the board could not reasonably have foreseen when it prepared the budget. For the third type, the board must first pass and distribute a resolution with written findings on why the expense was necessary and not foreseeable.
Late charges and interest (Civil Code 5650)
An assessment becomes delinquent 15 days after it is due unless the declaration gives longer. The association can then charge a late fee of up to 10% of the delinquent amount or $10, whichever is greater (unless the declaration sets less), plus reasonable collection costs and attorney's fees, and interest of up to 12% a year starting 30 days after the due date.
Liens and the $1,800 foreclosure floor (Civil Code 5660, 5705, 5720)
Before recording a lien, the association must send the owner a notice by certified mail at least 30 days ahead. Before starting foreclosure it must offer dispute resolution, and the board must approve the decision by majority vote in executive session. An association cannot foreclose to collect regular or special assessments that total less than $1,800 (not counting late charges, fees and interest) unless they are more than 12 months delinquent. Below that line it can sue in small claims court or record a lien it may foreclose later.
HOA fines and hearings under Civil Code 5850 and 5855
The $100 fine cap
Since 2025, a fine may not exceed the lesser of $100 per violation or the amount in the association's penalty schedule. The exception is a violation that may have an adverse health or safety impact on the common area or another member's property, and then only after the board makes a written finding of that impact at a meeting open to members. The association may not charge late fees or interest on a fine, and it must give members its current penalty schedule on request.
Notice, hearing and the right to cure
The board must give written notice at least 10 days before a meeting to consider discipline, stating the alleged violation and the member's right to attend and be heard. The member must get a chance to cure the violation first, and the association cannot impose discipline if it is cured before the meeting or, where a cure takes longer, the member makes a financial commitment to cure it. The board must deliver its written decision within 14 days.
A proposed change that stalled: AB 2579 of 2026
AB 2579 (Petrie-Norris), passed by the Assembly housing committee on April 22, 2026, would have let boards fine above $100 for listed violations such as blocking a fire lane, unsafe structures, dangerous pets, short-term rental violations of 30 days or less and threats or harassment. On May 21, 2026 it was moved to the Assembly inactive file at the author's request, so the $100 cap above still applies.
Open meetings, rule changes, elections and records
Board meetings (Civil Code 4900 to 4950)
The Common Interest Development Open Meeting Act governs board meetings. The board may not act on association business outside a meeting, and may not hold a meeting by a series of emails except an emergency meeting under set conditions. It may meet in executive session only for litigation, third-party contracts, member discipline, personnel and a member's request to discuss a payment plan; any executive session item must be noted generally in the next open meeting's minutes. Minutes, draft minutes or a summary of open meetings must be available to members within 30 days.
Changing the rules (Civil Code 4360)
The board must give members general notice of a proposed rule change at least 28 days before adopting it, and notice of the adopted change within 15 days. Emergency rule changes are allowed without advance notice only for an imminent threat to health and safety or substantial economic loss, and the notice must include the text, purpose and expiration date.
Secret-ballot elections (Civil Code 5100 and 5120)
Votes on assessments that need member approval, director elections and removals, amendments to the governing documents and grants of exclusive use of common area must be by secret ballot. Inspectors of election count ballots in public at a properly noticed meeting, a ballot cannot be withdrawn once received, and results must be noticed to members within 15 days.
Your right to inspect records (Civil Code 5200 to 5235)
Members can inspect and copy association records, including budgets, contracts, invoices, minutes and election materials. The association may charge the direct and actual cost of copying and mailing, disclosed in advance. If a court finds records were withheld without justification, it must award the member costs and attorney's fees and may impose a civil penalty of up to $500 for each separate written request; small claims court is available within its limits.
Budgets, reserve studies and who repairs what
Annual budget report and policy statement (Civil Code 5300 and 5310)
Every year, 30 to 90 days before the fiscal year ends, the board must distribute a budget report and an annual policy statement. The policy statement covers who receives official notices, the assessment collection and lien policy, the discipline policy and fine schedule, dispute resolution procedures and what changes to your property need approval. Read both before you buy: they are the quickest view of how an association is run.
Reserve study every three years (Civil Code 5550)
If the replacement value of the major components the association maintains is at least half of its gross annual budget (excluding reserves), the board must have a reasonably competent and diligent visual inspection of those components at least every three years as part of a reserve study, and review the study every year. The study must list components with a remaining useful life under 30 years, estimate repair or replacement costs, and include a funding plan. SB 900 (2024) added gas, water and electrical systems the association maintains to the inspection.
Repair responsibility (Civil Code 4775)
Unless the declaration says otherwise, the association repairs and maintains the common area and the owner maintains the separate interest. For exclusive use common area such as a balcony, patio or assigned parking space, the owner handles routine maintenance and the association handles repair and replacement. Since January 1, 2025, the association is also responsible for interruptions of gas, heat, water or electrical service that begin in the common area, even if the problem extends into a unit, and must start the repair process within 14 days.
Balcony inspections every nine years (Civil Code 5551)
Condo associations must also have balconies, decks and stairways they maintain inspected by a licensed structural engineer, civil engineer or architect every nine years. Our SB 326 balcony inspection guide covers the deadlines and what the report must include.
Worked example: what the Davis-Stirling limits mean in dollars
Take a hypothetical 200-unit condo association where every owner pays $450 a month and the budgeted gross expenses for the year are $1,200,000. The numbers below apply the statutory limits to those figures.
| Rule | Statutory limit | Applied to the example |
|---|---|---|
| Regular dues increase without a vote | 20% over last year | $450 to no more than $540 a month |
| Special assessments without a vote | 5% of budgeted gross expenses | $60,000 in the year, or $300 per unit if shared equally |
| Late charge on one missed payment | Greater of 10% or $10 | $45 |
| Interest after 30 days | Up to 12% a year | About $4.50 a month on $450 |
| Foreclosure floor | $1,800 in assessments, or more than 12 months late | Reached after four missed $450 payments |
| Fine for a non-safety violation | Lesser of $100 or the schedule | $100 maximum per violation |
The math shows why the 5% limit matters. A $2 million roof or balcony repair is far above $60,000, so the board must either use reserves, get a member vote for a larger special assessment, borrow, or rely on the emergency exception if a threat to safety is found. When you look at a condo, compare the reserve study's funding plan with the big projects the minutes discuss.
Buying a home in a California HOA
Documents the seller must provide (Civil Code 4525)
The seller must give you, as soon as practicable before transfer of title, a written statement from the association showing current regular and special assessments and fees, any unpaid assessments, unpaid fines, and any assessment changes the board has approved but that are not yet due. Ask for the CC&Rs, bylaws, operating rules, the latest budget report and policy statement, the reserve study, the last 12 months of minutes and any balcony inspection report as well. The seller disclosure guide lists the other forms you will see.
Questions the DRE suggests asking
The Department of Real Estate's brochure advises reading the governing documents before you buy, attending a board meeting, reading recent minutes, and checking that the association has adequate insurance, a solvent budget and a sufficient reserve account. Ask the manager directly whether any special assessment, litigation or major repair is being discussed.
ADUs in an HOA (Civil Code 4751)
State law voids CC&Rs that effectively prohibit or unreasonably restrict an accessory dwelling unit or junior ADU on a lot zoned for single-family use, and since 2025 a reasonable restriction cannot include fees or other financial requirements. Architectural review still applies. See the ADU rules guide for the state standards.
Costs on top of dues
Some HOA communities also sit inside a Mello-Roos district, which is a separate special tax on the property tax bill and not an HOA charge; the Mello-Roos guide explains how to find it. Condo buyers should also look at earthquake loss assessment coverage, covered in the earthquake insurance guide, because an uninsured building loss can come back to owners as a special assessment.
How to resolve a dispute with your HOA
Internal dispute resolution first
The annual policy statement must summarize the association's dispute resolution procedures, and a member who is not satisfied after a disciplinary hearing has the right to request internal dispute resolution (Civil Code 5855). Associations also offer a meet-and-confer program before foreclosure (Civil Code 5705). Ask in writing, so there is a record of the request and the answer.
Alternative dispute resolution before most lawsuits
The DRE brochure notes that, with some exceptions, either the owner or the association must offer some form of alternative dispute resolution, such as mediation, before filing a lawsuit to enforce the governing documents. Ask an attorney which exceptions apply to your dispute, and keep copies of every letter and request.
Court as the last step
The CC&Rs are enforceable as equitable servitudes by the association or any owner (Civil Code 5975), and the prevailing party in an enforcement action is awarded reasonable attorney's fees and costs. That fee rule cuts both ways, so get advice from an attorney who handles common interest development cases before you sue.
Common mistakes with California HOA law
- Assuming a state agency will step in. No agency polices association operations; owners use records requests, internal dispute resolution and the courts.
- Ignoring the minutes when buying. Special assessments are usually discussed for months before they are levied.
- Treating a fine notice as final. You have a right to notice, a hearing and a chance to cure, and most fines are capped at $100.
- Letting dues fall behind. Late fees, 12% interest and collection costs add up quickly, and the $1,800 foreclosure floor is reached in a few months for many owners.
- Missing the budget report. It shows the reserve funding plan and any planned dues increase before it takes effect.
- Relying on an old summary of the law. The fine cap and the utility repair rules both changed in 2025, and further changes were proposed in 2026.