Can your California HOA levy a special assessment without a vote — and did they follow the 5% rule?

California at a glance

The 5% rule

Under Civ. Code § 5605, the board may impose special assessments totaling up to 5% of the association's budgeted gross expenses in a fiscal year, and raise regular dues up to 20%, without a member vote. Beyond those caps, it needs member approval by a majority of a quorum — where the quorum is more than 50% of all members. That's a high bar, and it's the protection a large assessment is supposed to clear.

The emergency exception — and how it's misused

Section 5605 carves out 'emergencies' — a court order, a safety threat, or an extraordinary unforeseen expense — that let the board bypass the vote if it documents the emergency in the minutes. Practitioners widely report this exception being stretched to avoid a member vote. If your assessment exceeded 5% and there's no documented emergency in the board minutes, that's a red flag worth raising.

What's driving California assessments now

Three forces dominate in 2025–2026: insurance premium spikes (often 100–500% at a single renewal), SB 326 balcony repairs (Civ. Code § 5551, first deadline January 1, 2025), and local soft-story seismic retrofits. The reserve disclosure (§ 5570) is the early-warning system — California requires the study every three years but does not require the board to fully fund it, so a thin percent-funded number plus any of these drivers usually precedes an assessment.

Sources

• Cal. Civ. Code § 5605 — assessment limits (5% / 20%)(High)
• Cal. Civ. Code § 5570 — reserve funding disclosure(High)
• SB 326 (Cal. Civ. Code § 5551) — balcony inspections(High)

Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a California-licensed professional.