Homeowners associations (HOAs) manage many planned communities in California. Various local, state, and federal regulations as well as governing documents oversee HOAs in California.
Who Regulates HOAs in California?
In California, HOAs are governed by the Davis-Stirling Common Interest Interest Development Act found in California Civil Code section 4000-6150. This act applies to all common interest developments that contain separate units and common elements or association memberships.
HOAs are also regulated by their governing documents. The governing documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions, and, other rules and regulations. However, all HOAs are different in what documents they may or may not include.
HOAs in California may be subject to applicable federal laws such as:
HOAs may be subject to certain state laws such as:
- California Fair Employment and Housing Act
- California Corporations Code
- California Certified Common Interest Development Manager
- California Business and Professions Code
How to Find HOA Regulations in California
The documents governing an HOA are not available to the public in California. HOA governing documents are only available upon request by members and must be recorded with the County Recorder to be enforced.
HOA records filed with the California Secretary of State are accessible to anyone online and include the creation of an HOA, financial statements, and dissolution of an HOA.
Alternatively, the California Uniform Commercial Code can also hold HOA business records that include financial statements, amendments, or other modifications of the business. Record requests can be handwritten or accessed through the California Secretary of State website.
HOA Powers in California
In California, an HOA has the power to:
- Maintain common areas
- Collect payments for assessments
- Levy reasonable fines
- Foreclose on a house for unpaid liens
An HOA’s governing documents can also grant added powers such as restrictions on membership, parking, fencing, and exterior paint colors.
Can an HOA Impose Fines on a Homeowner in California?
In California, an HOA can impose fines on a homeowner for late payment of assessments and other reasonable charges. Charges are considered late 15 days after they are due.
There are multiple ways HOAs can impose fines on a homeowner. Fines can include attorney’s fees, interest on the total amount owed, and a late charge not to exceed 10% of the fine owed or $10, whichever is greater. The interest rate cannot exceed 12% annually.
An HOA cannot fine a homeowner for (or generally prohibit) any of the following:
- Displaying the American flag so long as the flag is displayed in a manner consistent with federal flag display law
- Displaying religious items on the entry door or entry door frame
- Displaying noncommercial signs, posters, flags, or banners
- Keeping at least one pet
- Installing fire retardant roof covering material
- Installing satellite dishes and antennas
- Regulating or restricting the use of water according to the California Water Code
- Pressure washing the exterior of an individual unit
- Renting or leasing a portion of an individual unit
- Installing an electric vehicle charging station
- Installing an EV-dedicated TOU meter
- Modifying the property to accommodate a disability
- Operating a family day care home
- Installing a solar energy system
An HOA’s governing documents may include reasonable regulations and rules about the placement, manner, and display of the items listed above.
Can an HOA Take a Homeowner’s House in California?
An HOA in California can foreclose on a home within its community. The process starts with an HOA placing a lien on a property when the owner neglects to pay their dues. If a lien goes unresolved, the HOA can foreclose on the house.
An HOA cannot evict a homeowner. However, if the homeowner is leasing a tenant, the HOA may be able to evict the tenant. For example, an HOA may be able to evict a tenant if the lease was not properly authorized by the HOA.
In addition, the HOA may have other powers or restrictions regarding rental properties in its governing documents.
Can an HOA Enter a Homeowner’s Property in California?
In California, there is no provision in the law allowing an HOA to enter a homeowner’s property. However, most governing documents contain a provision allowing an HOA to enter the homeowner’s house as reasonably necessary to maintain the units, common elements, or shared utilities.
Units are private spaces only intended for the property owner’s use but have certain spaces that require maintenance by the HOA, such as balconies. Common elements are the shared spaces around the units owned by the HOA, such as elevators. Shared utilities may include water or trash removal directly provided by the HOA.
Before entering a property, except in the case of an emergency, an HOA should give prior notice to the homeowner. Typically, an HOA will give 1-2 weeks’ notice, but notice requirements are determined by the governing documents.
Where Do Homeowners File Complaints Against Their HOA in California?
The venue for filing a Complaint against an HOA in California depends on the type of complaint.
Complaints about HOA fees can be filed with the Federal Trade Commission, the Consumer Financial Protection Bureau, or hire a private attorney. Under the Fair Debt Collection Practices Act, homeowners may also file in state or federal court within one year of the violation date.
For complaints of housing discrimination, they can file a complaint with the California Civil Rights Department, the U.S. Department of Urban Housing, or file a private lawsuit in California state or federal court.
Alternatively, a homeowner with any other complaints can bring a claim in state court in the appropriate county or, if certain conditions have been met, to the Office of the Attorney General.
Joining and Leaving an HOA in California
In California, if a person is an owner of a separate interest unit in an HOA, they are automatically a member. The rights and duties of members are defined in the HOA’s governing documents.
If a person bought a house in an area where an HOA is present, they cannot leave the HOA. To depart from an HOA, the homeowner can sell their house or petition to have their home removed from the association. However, there is no guarantee the petition will be granted.
How to Dissolve an HOA in California
The dissolution process of an HOA in California may be found in the HOA’s governing documents. If it is not, a unanimous vote by the HOA members is required to approve the dissolution.
If 100% of the members approve the dissolution, the HOA needs to transfer all assets and file a certificate of dissolution with the Secretary of State.
Sources
- 1 Ca. Civ. Code § 5200-5240
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(1) Any financial document required to be provided to a member… (a) The association shall make available association records
for the time periods and within the timeframes provided in Section
5210 for inspection and copying by a member of the association, or
the member’s designated representative.
Source Link - 2 Documents Governing Homeowners Associations
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CC&Rs and Bylaws differ in two major ways. First the CC&Rs define the way in which the association will be governed and provide for solutions in the event of certain events such as fire or disaster. The Bylaws give greater definition to the items that are mentioned in the CC&Rs. And second, the CC&Rs are the only document that is recorded (with the County Recorder) with the title when the property is sold and the document that binds the homeowners together.
Source Link - 3 Ca. Com. Code § 22600
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(i) “UCC record” means an initial financing statement, an amendment, an assignment, a continuation, a termination or a information statement and shall not be deemed to refer exclusively to paper or paper–based writings…
Source Link - 4 Ca. Com. Code §§ 22600.2, 22600.8
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UCC search requests may be delivered to the Secretary of State’s office by any of the means by which UCC records may be delivered to the Secretary of State’s office… Search requests may be submitted directly to the Secretary of State’s office using the UCC information management system which can be accessed through the Secretary of State’s website.
Source Link - 5 Ca. Civ. Code § 4775
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(a) (1) Except as provided in paragraph (3), unless otherwise provided in the declaration of a common interest development, the association is responsible for repairing, replacing, and maintaining the common area…
Source Link - 6 Ca. Civ. Code § 5600
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(a) Except as provided in Section 5605, the association shall levy regular and special assessments sufficient to perform its obligations under the governing documents and this act.
Source Link - 7 Ca. Corp. Code § 7140
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Subject to any limitations contained in the articles or bylaws and to compliance with other provisions of this division and any other applicable laws, a corporation, in carrying out its activities, shall have all of the powers of a natural person, including, without limitation, the power to… (g) Levy dues, assessments, and admission and transfer fees.
Source Link - 8 Ca. Civ. Code § 5705
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(c) The decision to initiate foreclosure of a lien for delinquent assessments that has been validly recorded shall be made only by the board and may not be delegated to an agent of the association. The board shall approve the decision by a majority vote of the directors in an executive session. The board shall record the vote in the minutes of the next meeting of the board open to all members. The board shall maintain the confidentiality of the owner or owners of the separate interest by identifying the matter in the minutes by the parcel number of the property, rather than the name of the owner or owners. A board vote to approve foreclosure of a lien shall take place at least 30 days prior to any public sale.
Source Link - 9 Ca. Civ. Code § 5650
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(b) Regular and special assessments levied pursuant to the governing documents are delinquent 15 days after they become due… (1) Reasonable costs incurred in collecting the delinquent assessment, including reasonable attorney’s fees. (2) A late charge not exceeding 10 percent of the delinquent assessment or ten dollars ($10), whichever is greater…(3) Interest on all sums imposed in accordance with this section, including the delinquent assessments, reasonable fees and costs of collection, and reasonable attorney’s fees, at an annual interest rate not to exceed 12 percent, commencing 30 days after the assessment becomes due, unless the declaration specifies the recovery of interest at a rate of a lesser amount, in which case the lesser rate of interest shall apply.
Source Link - 10 Ca. Civ. Code § 4700-4753
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This article includes provisions that limit the authority of an association or the governing documents to regulate the use of a member’s separate interest. Nothing in this article is intended to affect the application of any other provision that limits the authority of an association to regulate the use of a member’s separate interest, including, but not limited to, the following provisions… relating to the display of signs… relating to solar energy systems… relating to the modification of property to accommodate a disability… relating to the operation of a family day care home…
Source Link - 11 Member Defined
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As provided for in Civil Code § 4160, membership in a California homeowners or condominium association is coupled with an ownership interest in a common interest development. This requirement is frequently mirrored in an association’s governing documents, i.e., members must be owners of real property (lots or units) subject to the association’s CC&Rs. In short, a person must be on title to be a member…
Source Link - 12 Ca. Corp. Code § 8724
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Without the approval of 100 percent of the members, any contrary provision in this part or the articles or bylaws notwithstanding, so long as there is any lot, parcel, area, apartment, or unit for which an owners’ association, created in connection with any of the forms of development referred to in Section 11004.5 of the Business and Professions Code, is obligated to provide management, maintenance, preservation, or control, the following shall apply: (a) The owners’ association or any person acting on its behalf shall not do either of the following: (1) Transfer all or substantially all of its assets. (2) File a certificate of dissolution.
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