California • Special assessment notice
Can your California HOA levy a special assessment without a vote — and did they follow the 5% rule?
California gives owners more of a say than most states — but only if the board respects the limits. The Davis-Stirling Act caps what a board can assess without a vote, and the most common way owners get an improper assessment is through a misused 'emergency' declaration.
The short answer
California's Davis-Stirling Act lets the board impose a special assessment only up to 5% of the budget without a member vote; anything larger needs member approval (Civ. Code § 5605). There's an 'emergency' exception that boards sometimes lean on. CondoSignal checks your notice against the 5% rule, the emergency carve-out, and your reserve disclosure to tell you whether it was done right. Free.California at a glance
No-vote special cap
5% of budget
Above this needs member approval (§ 5605).
No-vote dues increase
20% / year
Larger regular increases also need a vote.
Member-vote quorum
> 50% of members
A high statutory threshold (§ 5605(c)).
Reserve study
Every 3 years
Required — but full funding is not (§ 5570).
Balcony inspection
SB 326
First deadline was Jan 1, 2025 (§ 5551).
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.
Your rights in California
As a California owner you're entitled to a vote on special assessments above 5% of the budget (or dues increases above 20%), and to the reserve and assessment disclosures in the annual budget report and at resale (§ 4525). If the board used the emergency exception, it must have documented the emergency in the minutes. None of this is legal advice — California requires internal dispute resolution before litigation, and you should confirm against the current Civil Code and counsel.
What to check
- Calculate whether the assessment exceeds 5% of the budgeted gross expenses.
- If it did, look for the member vote — or a documented emergency in the minutes.
- Check the § 5570 reserve summary for a 'special assessment anticipated' flag.
- See whether it traces to an SB 326 balcony repair or an insurance spike.
- For a pre-1978 building, confirm any local soft-story retrofit status.
- Request 2–3 years of board minutes to see when this formed.
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.
FAQ
Frequently asked questions
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