California HOA Compliance Guide

Regular assessment increases exceeding 20% of the previous year require member approval.

Special assessments exceeding 5% of gross budgeted expenses require member approval.

Foreclosure is only permitted for delinquent assessments totaling $1,800+ or 12+ months delinquent.

Director elections must use secret ballots, independent inspectors, and double-envelope system.

Reserve study with diligent visual inspection is required at least every 3 years; annual review required.

Condos with 3+ units must inspect exterior elevated elements (balconies/decks) every 9 years ("Balcony Bill"). First inspection deadline was Jan 1, 2025.

HOAs cannot ban rentals entirely or limit short-term rentals to more than 30 days. Rental caps cannot be lower than 25%.

Fines for non-health/safety violations are capped at $100. Interest and late fees on fines are prohibited.

Before fining, board must provide 10 days notice and hold a hearing; written decision must be provided within 14 days.

Annual Budget Report must be distributed 30 to 90 days before the fiscal year end.

Electronic voting is permitted only if the association uses a secure system and allows members to opt-out to paper ballots (AB 2159).

Governing documents cannot unreasonably restrict the construction or use of Accessory Dwelling Units (ADUs).

Architectural procedures must be fair, reasonable, and expeditious. They must state a maximum time for response and require written decisions.

Governing documents cannot effectively prohibit or significantly increase the cost of solar energy systems.

Notice of open board meetings must be posted in a prominent location at least 4 days in advance.

If a quorum is not present for an election, the meeting may be adjourned to a date where the quorum requirement reduces to 20% (AB 1458).

Virtual-only meetings (teleconference) are permitted without a physical location if strict notice and participation conditions are met (AB 648).