HOA rules by state / California

California HOA dues, late charge and collection rules

What California's Davis-Stirling Act says about HOA assessments, the late charge and interest caps, notices before a lien, foreclosure limits and assessment increases.

This page quotes the Davis-Stirling Common Interest Development Act, California Civil Code sections 4000 to 6150. Every point below was read in the California Legislature's official bulk data of the codes (downloads.leginfo.legislature.ca.gov), archive dated November 2026. The links below open the same sections on leginfo.legislature.ca.gov, on November 9, 2026. It is researched by DuesDesk and has not been reviewed by an attorney.

At a glance

• Regular and special assessments are delinquent 15 days after they become due, unless the declaration provides a longer period. (Cal. Civ. Code 5650(b))
• On a delinquent assessment the association may recover a late charge not exceeding the greater of 10 percent of the delinquent assessment or $10, unless the declaration specifies a smaller late charge. (Cal. Civ. Code 5650(b)(2))
• Interest may be recovered at an annual rate not to exceed 12 percent, commencing 30 days after the assessment becomes due, unless the declaration specifies a lesser rate. (Cal. Civ. Code 5650(b)(3))
• An owner's payments must first be applied to the assessments owed, and only after those are paid in full to fees and costs of collection, attorney's fees, late charges, or interest. (Cal. Civ. Code 5655(a))
• At least 30 days before recording a lien for a past-due debt under 5650, the association must notify the owner of record in writing by certified mail of the listed items. (Cal. Civ. Code 5660)
• An owner may submit a written request to meet with the board to discuss a payment plan for the noticed debt; the board must meet with the owner in executive session within 45 days of the postmark of the request if the request is mailed within 15 days of the postmark of the notice. (Cal. Civ. Code 5665(a), (b))
• Delinquent assessments of less than $1,800 (not counting accelerated assessments, late charges, collection fees and costs, attorney's fees, or interest) may not be collected through judicial or nonjudicial foreclosure; a recorded lien may not be foreclosed until that amount equals or exceeds $1,800 or the secured assessments are more than 12 months delinquent. (Cal. Civ. Code 5720(b), (b)(2))
• A nonjudicial foreclosure by an association for delinquent assessments is subject to a right of redemption that ends 90 days after the sale. (Cal. Civ. Code 5715(b))
• Without approval of a majority of a quorum of members, the board may not impose a regular assessment more than 20 percent greater than the preceding fiscal year's regular assessment. (Cal. Civ. Code 5605(b))
• Without that member approval the board may not impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses for the fiscal year; for this section "quorum" means more than 50 percent of the members. (Cal. Civ. Code 5605(b), (d)(3))
• A monetary penalty for a violation of the governing documents may not exceed the lesser of the scheduled penalty or $100 per violation (with a stated health-or-safety exception in subdivision (d)); a late charge or interest may not be charged on a monetary penalty. (Cal. Civ. Code 5850(c), (e))

What we did not find in the statute

People often ask about these. We looked for them in the text and did not find them. That is not the same as saying no such rule exists anywhere: other laws, court decisions and your own governing documents may add one.

• A rule that a late charge may be imposed only once per overdue assessment. Section 5650(b)(2) sets the cap; it does not say this.
• A duty to grant a payment plan. Section 5665 gives an owner the right to ask for a meeting with the board to discuss one.
• The notice period and default quorum for member meetings. These were not in the sections we read (the Corporations Code was not checked).
• A general period for keeping records. The Act says which years are open to inspection (s. 5210) and requires election materials to be kept for one year (s. 5200(c)).

Good to know

• Condominiums are covered by the same Act: s. 4100 lists a condominium project as a common interest development.
• Several exceptions in s. 5650(b) refer to "the declaration", not to the governing documents in general.
• Associations register with the California Secretary of State under s. 5405. The Attorney General and the Department of Real Estate both publish HOA information pages.

The statute, point by point

Delinquency, late charge, interest, application of payments

Delinquency date. Regular and special assessments are delinquent 15 days after they become due, unless the declaration provides a longer period. (Cal. Civ. Code 5650(b))

"Regular and special assessments levied pursuant to the governing documents are delinquent 15 days after they become due, unless the declaration provides a longer time period, in which case the longer time period shall apply."

Late charge cap. On a delinquent assessment the association may recover a late charge not exceeding the greater of 10 percent of the delinquent assessment or $10, unless the declaration specifies a smaller late charge. (Cal. Civ. Code 5650(b)(2))

"A late charge not exceeding 10 percent of the delinquent assessment or ten dollars ($10), whichever is greater, unless the declaration specifies a late charge in a smaller amount"

Interest cap and start date. Interest may be recovered at an annual rate not to exceed 12 percent, commencing 30 days after the assessment becomes due, unless the declaration specifies a lesser rate. (Cal. Civ. Code 5650(b)(3))

"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"

What interest is charged on. The interest provision applies to "all sums imposed in accordance with this section", listing delinquent assessments, reasonable fees and costs of collection, and reasonable attorney's fees. (Cal. Civ. Code 5650(b)(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"

Collection costs. If an assessment is delinquent the association may recover reasonable costs incurred in collecting it, including reasonable attorney's fees. (Cal. Civ. Code 5650(b)(1))

"Reasonable costs incurred in collecting the delinquent assessment, including reasonable attorney’s fees."

Constitutional interest limits. Associations are exempted from the interest-rate limitations of Article XV of the California Constitution, subject to the limits of section 5650. (Cal. Civ. Code 5650(c))

"Associations are hereby exempted from interest-rate limitations imposed by Article XV of the California Constitution, subject to the limitations of this section."

Application of payments. An owner's payments must first be applied to the assessments owed, and only after those are paid in full to fees and costs of collection, attorney's fees, late charges, or interest. (Cal. Civ. Code 5655(a))

"shall first be applied to the assessments owed, and, only after the assessments owed are paid in full shall the payments be applied to the fees and costs of collection, attorney’s fees, late charges, or interest"

Receipts and overnight payment address. On request the association must give the owner a receipt for a payment showing the date and who received it; the association must provide a mailing address for overnight payment of assessments in the annual policy statement. (Cal. Civ. Code 5655(b), (c))

"When an owner makes a payment, the owner may request a receipt and the association shall provide it." ... "The association shall provide a mailing address for overnight payment of assessments."

Payment under protest. Where a disputed charge does not exceed the small claims limit, the owner may pay the disputed amount and other amounts levied under protest and bring a small claims action. (Cal. Civ. Code 5658(a))

"pay under protest the disputed amount and all other amounts levied" ... "and commence an action in small claims court"

Notices and steps before a lien

Pre-lien notice, 30 days, certified mail. At least 30 days before recording a lien for a past-due debt under 5650, the association must notify the owner of record in writing by certified mail of the listed items. (Cal. Civ. Code 5660)

"At least 30 days prior to recording a lien upon the separate interest of the owner of record to collect a debt that is past due under Section 5650, the association shall notify the owner of record in writing by certified mail"

Pre-lien notice contents. The notice must include, among other items, an itemized statement of charges owed, and a prescribed foreclosure warning statement in 14-point boldface type (if printed) or capital letters (if typed). (Cal. Civ. Code 5660(a), (b))

"An itemized statement of the charges owed by the owner, including items on the statement which indicate the amount of any delinquent assessments, the fees and reasonable costs of collection, reasonable attorney’s fees, any late charges, and interest, if any."

Payment plan meeting. An owner may submit a written request to meet with the board to discuss a payment plan for the noticed debt; the board must meet with the owner in executive session within 45 days of the postmark of the request if the request is mailed within 15 days of the postmark of the notice. (Cal. Civ. Code 5665(a), (b))

"The board shall meet with the owner in executive session within 45 days of the postmark of the request, if the request is mailed within 15 days of the date of the postmark of the notice"

Late fees during a payment plan; plan does not block a lien. Additional late fees do not accrue during the payment plan period if the owner complies with the plan; a payment plan does not impede the association's ability to record a lien. (Cal. Civ. Code 5665(c), (d))

"Additional late fees shall not accrue during the payment plan period if the owner is in compliance with the terms of the payment plan." ... "Payment plans shall not impede an association’s ability to record a lien on the owner’s separate interest to secure payment of delinquent assessments."

Dispute resolution offer before lien. Before recording a lien for delinquent assessments, the association must offer the owner, and if requested participate in, dispute resolution under its "meet and confer" program. (Cal. Civ. Code 5670)

"Prior to recording a lien for delinquent assessments, an association shall offer the owner and, if so requested by the owner, participate in dispute resolution pursuant to the association’s “meet and confer” program"

Board decision to record a lien. The decision to record a lien for delinquent assessments may be made only by the board, not delegated to an agent, by majority vote of the directors in an open meeting, with the vote recorded in the minutes. (Cal. Civ. Code 5673)

"the decision to record a lien for delinquent assessments 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 open meeting."

How the lien arises; copy to owners. The amounts become a lien from the time the association records a notice of delinquent assessment with the county recorder; a copy of the recorded notice must be mailed by certified mail to every owner of record in the association's records no later than 10 calendar days after recordation. (Cal. Civ. Code 5675(a), (e))

"shall be mailed by certified mail to every person whose name is shown as an owner of the separate interest in the association’s records, and the notice shall be mailed no later than 10 calendar days after recordation"

Lien release. Within 21 days of payment of the sums in the notice of delinquent assessment, the association must record a lien release or notice of rescission and give the owner a copy. (Cal. Civ. Code 5685(a))

"Within 21 days of the payment of the sums specified in the notice of delinquent assessment, the association shall record or cause to be recorded in the office of the county recorder in which the notice of delinquent assessment is recorded a lien release or notice of rescission"

Consequence of skipping the procedure. An association that fails to comply with the article's procedures must recommence the notice process before recording a lien, at its own cost. (Cal. Civ. Code 5690)

"An association that fails to comply with the procedures set forth in this article shall, prior to recording a lien, recommence the required notice process. Any costs associated with recommencing the notice process shall be borne by the association and not by the owner of a separate interest."

Foreclosure limits and redemption

30 days after recording before enforcement. A lien may be enforced after the expiration of 30 days following its recording, in any manner permitted by law, except as otherwise provided in the article. (Cal. Civ. Code 5700(a))

"after the expiration of 30 days following the recording of a lien created pursuant to Section 5675, the lien may be enforced in any manner permitted by law"

$1,800 / 12 months foreclosure limit. Delinquent assessments of less than $1,800 (not counting accelerated assessments, late charges, collection fees and costs, attorney's fees, or interest) may not be collected through judicial or nonjudicial foreclosure; a recorded lien may not be foreclosed until that amount equals or exceeds $1,800 or the secured assessments are more than 12 months delinquent. (Cal. Civ. Code 5720(b), (b)(2))

"equals or exceeds one thousand eight hundred dollars ($1,800) or the assessments secured by the lien are more than 12 months delinquent"

Board decision to foreclose. The decision to initiate foreclosure may be made only by the board (not delegated), by majority vote of the directors in executive session; the vote must take place at least 30 days before any public sale. (Cal. Civ. Code 5705(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."

Dispute resolution offer before foreclosure. Before initiating a foreclosure the association must offer the owner, and if requested participate in, "meet and confer" dispute resolution or alternative dispute resolution; the choice is the owner's. (Cal. Civ. Code 5705(b))

"Prior to initiating a foreclosure on an owner’s separate interest, the association shall offer the owner and, if so requested by the owner, participate in dispute resolution"

Right of redemption, 90 days. A nonjudicial foreclosure by an association for delinquent assessments is subject to a right of redemption that ends 90 days after the sale. (Cal. Civ. Code 5715(b))

"A nonjudicial foreclosure by an association to collect upon a debt for delinquent assessments shall be subject to a right of redemption." ... "ends 90 days after the sale"

Fines are not foreclosable assessments. A monetary penalty imposed as a disciplinary measure (except for late payments) may not be treated in the governing documents as an assessment that may become a lien enforceable by sale. (Cal. Civ. Code 5725(b))

"may not be characterized nor treated in the governing documents as an assessment that may become a lien against the member’s separate interest enforceable by the sale of the interest"

Levying assessments; limits on increases and special assessments

Duty to levy; no excess assessments. The association must levy regular and special assessments sufficient to perform its obligations, and may not impose an assessment or fee exceeding the amount necessary to defray the costs for which it is levied. (Cal. Civ. Code 5600(a), (b))

"An association shall not impose or collect an assessment or fee that exceeds the amount necessary to defray the costs for which it is levied."

20 percent limit on regular assessment increases. Without approval of a majority of a quorum of members, the board may not impose a regular assessment more than 20 percent greater than the preceding fiscal year's regular assessment. (Cal. Civ. Code 5605(b))

"the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the association’s preceding fiscal year"

5 percent limit on special assessments; quorum for this section. Without that member approval the board may not impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses for the fiscal year; for this section "quorum" means more than 50 percent of the members. (Cal. Civ. Code 5605(b), (d)(3))

"or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members" ... "“Quorum” means more than 50 percent of the members."

Emergency exception. Section 5605 does not limit assessment increases necessary for emergency situations as defined in 5610. (Cal. Civ. Code 5610)

"Section 5605 does not limit assessment increases necessary for emergency situations."

Notice of an assessment increase. The association must give members individual notice of any increase in regular or special assessments not less than 30 nor more than 60 days before the increased assessment becomes due. (Cal. Civ. Code 5615)

"not less than 30 nor more than 60 days prior to the increased assessment becoming due"

Budget, policy statement, financial review, reserves

Annual budget report. The association must distribute an annual budget report 30 to 90 days before the end of its fiscal year, including a pro forma operating budget on an accrual basis. (Cal. Civ. Code 5300(a), (b)(1))

"an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year" ... "A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis."

Annual policy statement. Within 30 to 90 days before the end of its fiscal year the board must distribute an annual policy statement, which must include a statement of the association's policies on enforcing lien rights or other remedies for default in payment of assessments. (Cal. Civ. Code 5310(a), (a)(7))

"Within 30 to 90 days before the end of its fiscal year, the board shall distribute an annual policy statement that provides the members with information about association policies."

Statutory assessment-and-foreclosure notice to owners. The annual policy statement must include a prescribed "NOTICE ASSESSMENTS AND FORECLOSURE" in at least 12-point type. (Cal. Civ. Code 5730(a))

"The annual policy statement, prepared pursuant to Section 5310, shall include the following notice, in at least 12-point type:"

CPA review of financial statement. For any fiscal year in which gross income exceeds $75,000, a review of the financial statement must be prepared by a licensee of the California Board of Accountancy and a copy distributed to members within 120 days after the close of the fiscal year (unless governing documents are more stringent). (Cal. Civ. Code 5305)

"for any fiscal year in which the gross income to the association exceeds seventy-five thousand dollars ($75,000). A copy of the review of the financial statement shall be distributed to the members within 120 days after the close of each fiscal year"

Reserve study. At least once every three years the board must have a visual inspection of the accessible areas of the major components done as part of a reserve study, if the current replacement value of the major components is at least half the gross budget (excluding the reserve account); the board must review the study annually. (Cal. Civ. Code 5550(a))

"At least once every three years, the board shall cause to be conducted a reasonably competent and diligent visual inspection of the accessible areas of the major components" ... "if the current replacement value of the major components is equal to or greater than one-half of the gross budget of the association"

Monthly board financial review. Unless governing documents are more stringent, the board must review monthly: reconciliations of operating and reserve accounts, actual vs budget, bank statements, income and expense statement, and the check register, general ledger and delinquent assessment receivable reports. (Cal. Civ. Code 5500(a)-(f))

"Review, on a monthly basis, a current reconciliation of the association’s operating accounts." ... "Review, on a monthly basis, the check register, monthly general ledger, and delinquent assessment receivable reports."

Reserve withdrawals and large transfers. Reserve account withdrawals require two signatures (two directors, or one director and one non-director officer); transfers from reserve or operating accounts need prior written board approval unless below the lesser of $5,000 or 5 percent of estimated annual operating income (50 or fewer separate interests) or the lesser of $10,000 or 5 percent (51 or more). (Cal. Civ. Code 5510(a); 5502(a))

"The signatures of at least two persons, who shall be directors, or one officer who is not a director and one who is a director, shall be required for the withdrawal of moneys from the association’s reserve accounts."

Records access

Member right to inspect and copy. The association must make association records available for inspection and copying by a member or the member's designated representative, for the periods and within the timeframes in 5210. (Cal. Civ. Code 5205(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."

Which years are open to inspection. Association records are subject to member inspection for the current fiscal year and each of the previous two fiscal years; minutes of member and board meetings are subject to inspection permanently. (Cal. Civ. Code 5210(a)(1), (a)(2))

"For the current fiscal year and for each of the previous two fiscal years." ... "minutes of member and board meetings are subject to inspection permanently"

Time limits to provide access. Access must be granted within 10 business days of the association's receipt of the request for records prepared in the current fiscal year, and within 30 calendar days for records prepared in the previous two fiscal years. (Cal. Civ. Code 5210(b)(1), (b)(2))

"Association records prepared during the current fiscal year, within 10 business days following the association’s receipt of the request." ... "Association records prepared during the previous two fiscal years, within 30 calendar days following the association’s receipt of the request."

Cost of copies and redaction; penalty. The association may bill the direct and actual cost of copying and mailing, plus up to $10 per hour and not more than $200 per written request for redacting an enhanced association record; a court may assess a civil penalty of up to $500 per denied written request if access was unreasonably withheld. (Cal. Civ. Code 5205(f), (g); 5235(a))

"The association may bill the requesting member for the direct and actual cost of copying and mailing requested documents." ... "an amount not in excess of ten dollars ($10) per hour, and not to exceed two hundred dollars ($200) total per written request"

Meetings and elections

Board meeting notice. The association must give notice of the time and place of a board meeting at least four days before the meeting (two days for a nonemergency meeting held solely in executive session; none required for an emergency meeting); the notice must contain the agenda. (Cal. Civ. Code 4920(a), (b)(2), (d))

"the association shall give notice of the time and place of a board meeting at least four days before the meeting" ... "Notice of a board meeting shall contain the agenda for the meeting."

Board minutes availability. Minutes, draft minutes, or a summary of minutes of any board meeting other than an executive session must be available to members within 30 days of the meeting. (Cal. Civ. Code 4950(a))

"shall be available to members within 30 days of the meeting"

Secret ballot elections, including assessment votes. Elections regarding assessments legally requiring a vote, election and removal of directors, governing document amendments, or grants of exclusive use of common area must be held by secret ballot under the Act's procedures. (Cal. Civ. Code 5100(a)(1))

"elections regarding assessments legally requiring a vote, election and removal of directors, amendments to the governing documents, or the grant of exclusive use of common area pursuant to Section 4600 shall be held by secret ballot"

Election notices and ballot timing. General notice of the nomination procedure and deadline must be given at least 30 days before the nomination deadline (director and recall elections); ballots must be mailed or delivered to every member not less than 30 days before the voting deadline (subject to the electronic-ballot exception in the same subdivision). (Cal. Civ. Code 5115(a), (c))

"An association shall provide general notice of the procedure and deadline for submitting a nomination at least 30 days before any deadline for submitting a nomination." ... "shall be mailed by first-class mail or delivered by the association to every member not less than 30 days prior to the deadline for voting"

Fines; state registration

Fine cap; no late charge or interest on fines. A monetary penalty for a violation of the governing documents may not exceed the lesser of the scheduled penalty or $100 per violation (with a stated health-or-safety exception in subdivision (d)); a late charge or interest may not be charged on a monetary penalty. (Cal. Civ. Code 5850(c), (e))

"A monetary penalty for a violation of the governing documents shall not exceed the lesser of the following:" ... "One hundred dollars ($100) per violation." ... "A late charge or interest shall not be charged to a member for a monetary penalty."

Secretary of State registration. Each association, incorporated or not, must submit specified identifying information to the Secretary of State on a prescribed form for a fee not to exceed $30. (Cal. Civ. Code 5405(a))

"each association, whether incorporated or unincorporated, shall submit to the Secretary of State, on a form and for a fee not to exceed thirty dollars ($30) that the Secretary of State shall prescribe"

How this page is kept accurate

• Statute text last checked: November 9, 2026. We re-check every six months and after each legislative session.
• Each quotation was compared word for word with the official text by a program, not retyped.
• We quote; we do not interpret. If your situation turns on one of these rules, read the full section and ask an attorney licensed in the state.
• Found something out of date? Write to support@duesdesk.app.

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