HOA Special Assessments in California: Rules & Limits

California has some of the most detailed HOA special assessment rules in the country, all housed in the Davis-Stirling Common Interest Development Act (Civil Code §§ 4000–6150). Here’s what the statute says about when your board can levy a special assessment and what protections you have as an owner.

General information, not legal advice. California law changes, and your governing documents may add further requirements. Consult an HOA lawyer about your situation.

When the board can levy without a vote

Under Civil Code Section 5605, the board can impose a regular or special assessment without a member vote as long as the total of all assessments (regular + special) imposed in any fiscal year does not exceed an amount equal to 5% of the budgeted gross expenses for that fiscal year.

In practice, this means small special assessments — a few thousand dollars for a modest repair — can often be approved by the board alone. Anything that pushes the total above the 5% threshold requires a membership vote.

When a member vote is required

A special assessment that exceeds the 5% threshold requires approval by a majority of a quorum of the membership, conducted by secret ballot under the Davis-Stirling election rules (Civil Code §§ 5100–5145). The association must:

• Provide written notice of the proposed assessment
• Hold a meeting at which the assessment is discussed
• Conduct a secret ballot vote
• Announce the results at an open meeting

The governing documents may set a lower threshold (requiring a vote at a smaller amount) or a higher approval percentage (e.g., two-thirds). The statute sets the floor, not the ceiling.

A “regular” assessment is the routine, recurring dues charge. A “special” assessment is a one-time charge for a specific extra cost, like a roof replacement or a reserve shortfall. Civil Code Section 5605 counts both toward the same 5% threshold, but they’re billed and disclosed differently. See can an HOA raise dues without notice for how the two are treated differently for notice purposes.

Emergency assessments

The statute provides an exception for emergency assessments — situations where the board needs to act immediately to:

• Address an imminent threat to personal safety or structural integrity
• Comply with a court order or legal obligation
• Restore essential services that have been interrupted

Emergency assessments can bypass the normal vote requirement, but the board must still provide notice as soon as practicable and must explain the emergency at the next board meeting.

Owner protections

California gives HOA owners several protections when it comes to special assessments:

Payment plans. Under Civil Code Section 5615, an owner who is unable to pay a special assessment in a lump sum may request a payment plan before the assessment becomes delinquent. The association must accommodate a plan of at least 12 months under its collection policy. This right only applies before delinquency — once you’re past due, the association’s standard collection process kicks in.

Notice requirements. The association must provide written notice before any assessment increase or special assessment takes effect. For assessments requiring a member vote, the notice and ballot procedures of the Davis-Stirling election rules apply.

Assessment limits in the CC&Rs. Many California CC&Rs set their own caps on special assessments — sometimes expressed as a dollar amount, sometimes as a percentage. These limits are enforceable and may be stricter than the statute.

Insurance may cover part of it. Your HO-6 or condo owner’s policy can include loss-assessment coverage, but it typically only reimburses your share when the assessment traces back to a separate covered loss, like fire or storm damage. It does not cover a reserve shortfall or routine repair, and it rarely covers the full amount even for a covered loss. See loss assessment coverage for how much a typical policy pays and when filing a claim is worth it.

Liens and foreclosure protections. California allows associations to place a lien for unpaid assessments, but the foreclosure process includes specific notice, waiting periods, and the right to cure before the association can proceed. For debts under $1,800 (exclusive of fees and penalties), the association cannot foreclose through a non-judicial power of sale. Foreclosure isn’t the only route, either. In some cases the association can sue an owner directly for the unpaid assessment instead of placing a lien. See can an HOA sue you for when that comes up.

Tax treatment

Special assessments on a primary residence in California are generally not tax deductible. On a rental property, the treatment depends on whether the assessment funds a repair (potentially deductible) or an improvement (capitalized and depreciated). See our guide on are HOA fees tax deductible for the full breakdown.

How to prepare

• Read the reserve study. A current reserve study shows whether your community is saving enough. Underfunded reserves are the #1 predictor of special assessments.
• Attend budget meetings. This is where you learn what’s coming.
• Know your vote threshold. Check your CC&Rs — they may require a higher approval percentage than the statute’s baseline.
• Request a payment plan early. If an assessment is approved, contact the board or manager immediately to set up a plan before the due date passes.

If you think the assessment is wrong

You aren’t stuck just accepting it. Start by requesting the reserve study and other financial records the board relied on. Then check whether the notice met Davis-Stirling’s requirements, since a missing or defective notice can affect the assessment’s validity. See our HOA special assessment guide for how to fight one, what records you’re entitled to see, and when a notice defect gives you real grounds to push back.

Bottom line

California law gives boards the power to levy special assessments, but it also gives owners meaningful protections: vote thresholds, payment plans, notice requirements, and foreclosure safeguards. For the full picture of how the state regulates community associations, see our California HOA laws guide. Know your rights under the Davis-Stirling Act and your CC&Rs, and engage early — before the assessment is a done deal.