Owning a home in a planned community or condominium often means being part of a homeowners association (HOA). While these associations help maintain property values and create a sense of order, they also come with financial responsibilities. Understanding HOA fees and assessments in California can help you avoid costly surprises and protect your rights as a homeowner.
What Are HOA Fees?
HOA fees are regular payments that every member of the association must make. These funds cover the day-to-day costs of maintaining shared spaces and community operations.
Typical expenses include:
- Landscaping, pool, and gym maintenance
- Common area repairs and cleaning
- Management company fees and administrative costs
- Utilities for shared areas
- Insurance premiums and reserve funds for future repairs
The amount varies depending on the size of the property, the amenities offered, and the overall financial health of the community. Before buying a home, always review the HOA’s budget and fee schedule to understand what you’re agreeing to pay.
What Are Special Assessments?
Special assessments are one-time charges that HOAs impose to cover unexpected or major expenses that regular fees cannot handle. These are often used for large-scale repairs, emergency work, or to replenish reserves after an unforeseen event.
Common reasons for special assessments include:
- Roof or structural repairs
- Replacing outdated plumbing or electrical systems
- Damage from storms or natural disasters
- Legal settlements involving the HOA
Unlike regular dues, special assessments can come with short notice and significant costs, which is why it’s important for homeowners to understand the association’s rules before purchase.
Legal Rules Governing HOA Fees and Assessments in California
California HOAs are governed by the Davis-Stirling Common Interest Development Act, which establishes clear rules about how fees and assessments must be managed.
Under this law:
- HOAs must provide annual budgets and reserve studies to all members.
- Any increase in regular dues of more than 20% requires member notice.
- Special assessments that exceed 5% of the annual budget must be approved by the membership.
- Homeowners have the right to review the HOA’s financial records upon request.
These requirements are designed to protect homeowners from unfair or unexpected charges and to promote financial transparency within the community.
What Happens If You Don’t Pay HOA Fees or Assessments
Failure to pay HOA fees or assessments can result in serious financial and legal consequences. HOAs can impose late fees, interest, and collection costs. If payments remain unpaid, the association can record a lien against the property and, in some cases, initiate foreclosure proceedings.
If you’re struggling to pay, communicate with your HOA as soon as possible. Many associations offer payment plans or other options to help you avoid penalties and protect your home.
Common Disputes Between Homeowners and HOAs
Disagreements between homeowners and HOAs are common, especially when it comes to money. Typical conflicts include:
- Excessive or improperly approved special assessments
- Mismanagement or lack of transparency in HOA finances
- Disputes over late fees or penalties
- Disagreements about whether repairs are covered by the HOA or the homeowner
When these issues arise, homeowners often benefit from working with an attorney familiar with California real estate and HOA law.
How a Real Estate Attorney Can Help
At Stone & Sallus, our attorneys have extensive experience helping both homeowners and associations resolve disputes efficiently and fairly. We can:
- Review HOA governing documents and budgets for compliance
- Negotiate or challenge unfair assessments
- Represent homeowners in mediation or court proceedings
- Provide strategic guidance to protect your property rights
Understanding your legal position early can prevent long-term financial stress and unnecessary conflict.
Practical Tips for Homeowners
To avoid misunderstandings and financial strain, keep these best practices in mind:
- Review your HOA’s bylaws and financial reports annually
- Attend meetings to stay informed about budget changes
- Keep written copies of all correspondence with your HOA
- Budget for potential special assessments or increases
Staying proactive helps ensure you’re never caught off guard by an unexpected fee or policy change.
Protecting Your Rights as a California Homeowner
HOA fees and assessments are a normal part of community living, but they must be handled lawfully and transparently. If you believe your HOA is charging unreasonable fees, acting outside its authority, or mishandling funds, you have legal options.
Contact Stone & Sallus to speak with an experienced real estate attorney who understands California HOA law. Our team can help you review your rights, resolve disputes, and protect your investment.
Frequently Asked Questions
What’s the difference between HOA dues and assessments?
Dues are recurring payments for ongoing maintenance and operations. Assessments are one-time charges for major or unexpected expenses.
Can an HOA increase fees without notice in California?
No. California law requires HOAs to notify members of fee increases and, in some cases, to hold a vote if increases exceed certain limits.
Can you refuse to pay an HOA special assessment?
Homeowners are legally required to pay assessments approved under the HOA’s governing documents. However, if the assessment was imposed improperly, you may challenge it.
What legal rights do homeowners have against unfair HOA fees?
Homeowners can review financial records, challenge noncompliant assessments, and pursue legal action for violations of the Davis-Stirling Act.
How can a real estate attorney help with HOA disputes?
An attorney can evaluate your case, communicate with the HOA on your behalf, and take legal steps to protect your property and financial interests.
