In California, nearly five million homes belong to a homeowners association (HOA), and the average HOA fees in the state are around $300. Yet, many pay between $600 and $700 per month.
California is already one of the most expensive states to live in, and an inflated HOA fee can make it all the more expensive. Luckily, the California Homeowners Association and government officials regulate HOA fees so they don't grow out of control.
To learn more about HOA laws in California, continue reading.
What Are HOA Fees?
An HOA fee is an owner's monthly fee to cover association dues and maintenance costs. These regular dues help to maintain all properties, shared amenities, and common areas. In some instances, it may also cover the following:
- Insurance
- Municipal services
- Shared services
California Civil Code Section 5605 states that the association may only impose an annual increase on these regular dues to community members. This prevents the targeting of specific families. Additionally, the HOA fee increase cannot exceed 20% of the value of the previous year's dues.
This protects residents against sudden and untenable spikes in the cost of living. Further, if the association is going to increase its HOA fees, it must give residents at least 30 days' notice.
Special Assessments
If an HOA has a large project it needs to fund, the funds collected from regular dues may not be enough.
In this case, the HOA needs a special assessment. This is most common when an emergency occurs, such as a flood that causes the property to be unsafe or an immediate substantial repair arises. The special assessment will pay for the community task.
However, the HOA must follow specific rules for collecting these fees.
First, the assessment cannot exceed 5% of the current year's gross expense budget. Also, the residents must split the costs evenly. If the assessment is $10,000 and there are 50 residents, each home contributes $200.
This is because the associate must apply the special assessment to all residents and can only use the money for an emergency that impacts the whole community.
Finally, the association must also notify residents of the special assessment. Residents should have between 30 and 60 days' notice before receiving a bill.
New California HOA Laws in California in 2024
In addition to current California HOA regulations, several new laws dealing with HOAs are going into effect this year. They include:
- AB 572 (Limitations on Assessments)
- AB 648 (Virtual/Electronic Meetings)
- AB 1033 (Turning ADUs Into Condos)
- AB 1458 (Adjourning Election Meeting for Lack of Quorum)
- AB 1572 (Potable Water)
- AB 1764 (Election Rules)
Since HOA laws are constantly changing, it's best to ensure your HOA board understands the regulations to remain compliant. If the board is insufficient in doing it, it's best to work with a property management company that understands the rules to the fullest extent.
HOA Management With Menifee Association Management
Although the state limits HOA fees, you still don't want to pay an extraordinary amount for nothing. You should always ask your HOA what the money is being used for to understand better how they maintain the property.
When in doubt, work with a local property management company to help operate the HOA board, like us at Menifee Association Management. With a management portfolio of over 3,500 units, we're the professionals to help with HOA management and anything else you need for your property. So contact us today!
