United States | California
California HOA Law: The Davis-Stirling Act for Small Associations
California calls condos, planned developments and similar communities common interest developments, and the Davis-Stirling Common Interest Development Act (Civil Code section 4000 and on) governs them. The Foundation for Community Association Research, an industry group, estimates 51,700 associations in California in 2025, the most of any state. The Department of Real Estate says developments range "from a simple two-unit development" to thousands of homes.
The short answer
- The DRE: "there is no State or local agency that directly regulates associations or their members."
- Membership is automatic, and most associations are nonprofit mutual benefit corporations.
- The board can raise regular assessments up to 20 percent a year without owner approval, and special assessments up to 5 percent of budgeted expenses (DRE, June 2016).
- A late fee of $10 or 10 percent of the monthly assessment, whichever is greater, after 15 days; interest up to 12 percent a year after 30 days.
- Owners or the association must offer alternative dispute resolution before most lawsuits.
The board
- The governing documents set the number of directors and their terms. Directors are elected yearly or less often.
- Each lot or unit has one vote, with an exception for the subdivider for a time.
- The board may hire a management company, but "it is the board that is responsible for the oversight".
- Owners have the right to attend board meetings and be heard.
- The board circulates a budget 30 to 90 days before the end of the fiscal year, and prepares a year-end financial statement.
Assessments
- Regular assessments fund day-to-day operations and reserves for long-term maintenance.
- Increases above 20 percent a year need approval of a majority of the members, with emergency exceptions such as a court-ordered expense.
- Special assessments above 5 percent of gross budgeted expenses in a year need member approval.
- A fine is a separate charge from a special assessment.
- Once a year the association sends each owner its collection policy.
- The association may lien the property and foreclose for unpaid assessments.
Disputes
The DRE booklet says the law "currently requires, with some exceptions, that either the owner or the association must offer to engage in some form of alternative dispute resolution process before filing a lawsuit." The DRE's FAQ says the Attorney General's office gives some oversight of incorporated associations, and that the DRE can help only while the developer still owns interests.
What we could not confirm
The Civil Code text for reserve studies, election rules, open meeting and notice periods, records deadlines, resale documents and every change made in 2025 or 2026. A small association should read those sections in the current code or ask a California attorney.
California's code site refused every request on 31 October 2026, so this page rests on the Department of Real Estate's booklet RE 39 (revised June 2016) and its FAQ (2019). Figures may have changed since. Check the current Civil Code before you rely on a number.
Common questions
What is the Davis-Stirling Act? +
California's law for common interest developments such as condos and planned communities, in Civil Code section 4000 and on.
Who regulates HOAs in California? +
The DRE says no state or local agency directly regulates associations. The DRE reviews a new development before sale, and the Attorney General has some oversight of incorporated associations.
How much can a California HOA raise dues? +
The DRE booklet (June 2016) says up to 20 percent a year without owner approval; more needs a majority of members.
What is the late fee for HOA dues in California? +
The DRE booklet says $10 or 10 percent of the monthly assessment, whichever is greater, after 15 days, unless the CC&Rs set less, plus interest up to 12 percent a year after 30 days.
Can a two-unit building be an HOA in California? +
Yes. The DRE says developments range from a simple two-unit development to thousands of homes.
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