California HOA Disclosure Requirements 2026: SB 410, AB 130, SB 326, and Civil Code 4525 Explained

California regulates homeowners associations more extensively than any other state. The Davis-Stirling Common Interest Development Act (Civil Code 4000-6150) establishes a comprehensive framework covering governance, finances, disclosures, and enforcement.

For boards, property managers, and real estate professionals, keeping track of which requirements apply — and which recent legislation has changed them — is a full-time compliance challenge.

This guide provides the complete picture as of 2026.

The Foundation: Civil Code 4525-4530

Civil Code sections 4525 through 4530 establish the core disclosure requirements for California HOA resales. These are the items that must be provided to a prospective buyer when a unit in a common interest development is sold.

Required Disclosures (15 Items)

What "Board-Confirmed Disclosures" Means in Practice

Several of these items require the board to actively confirm information rather than simply exporting data. For example:

• Pending litigation — The board (or legal counsel) must affirm whether any litigation is pending, threatened, or resolved. The financial system cannot determine this automatically.
• CC&R violations — Known violations must be identified, which requires board knowledge beyond what ledger data shows.
• Assessment enforcement policy — The association's specific collection procedures, including timing, notice requirements, and escalation steps.

Until the board confirms these items, they must be reported as "unknown" with an explanation — never omitted.

SB 410: EEE Reserve Reports

Senate Bill 410 (effective January 1, 2024) amended Civil Code 5300 to require associations to include information about Exterior Elevated Elements (EEE) — balconies, decks, walkways, and stairways — in their annual budget and reserve disclosures.

What SB 410 Requires

• The annual budget report must include a summary of the association's EEE inspection obligations under SB 326 (Civil Code 5551)
• The reserve study must address EEE components and their anticipated repair or replacement costs
• If inspections have been completed, the results (or a summary) must be disclosed

Why This Matters

SB 410 connects the SB 326 inspection regime (see below) to the financial planning process. Associations cannot treat EEE inspections as a standalone compliance checkbox — the costs and findings must flow through to the budget and reserve study.

For boards, this means the reserve study must specifically identify EEE components, assign useful life estimates, and fund their maintenance. An inspection that reveals deficiencies triggers a direct financial planning obligation.

AB 130: HOA Fine Limits

Assembly Bill 130 (effective January 1, 2022) established California's first statutory cap on HOA fines and formalized the hearing process.

Fine Schedule Requirements

What Boards Must Do

1. Review existing fine schedules — Any fine exceeding $200 per violation must be reduced
2. Formalize the hearing process — Written notice, 10-day minimum, opportunity to present evidence
3. Document every enforcement action — The fine, the violation, the notice sent, the hearing (if held), and the board's decision must all be recorded
4. Apply the IDR/ADR framework — Davis-Stirling requires internal dispute resolution (IDR) and alternative dispute resolution (ADR) before formal enforcement. Boards must offer IDR before imposing fines

SB 326: Balcony and EEE Inspections

Senate Bill 326 (effective January 1, 2020) requires condominiums with three or more multifamily dwelling units to inspect exterior elevated elements (EEEs) — balconies, decks, stairways, walkways, and railings — on a specific timeline.

Key Requirements

Financial Impact

SB 326 inspections frequently reveal deferred maintenance that requires significant capital expenditure. This creates two financial challenges:

1. Special assessment risk — If reserve funds are insufficient to cover required repairs, a special assessment may be necessary
2. Reserve study updates — Inspection findings must be incorporated into the reserve study, potentially increasing annual contribution requirements

For a deeper analysis of SB 326's impact on reserve planning and special assessments, see California SB 326 Reserve Studies and Special Assessments.

SB 770: Expanded Reserve Studies

Senate Bill 770 (effective January 1, 2024) expanded reserve study requirements to include an evaluation of the association's EEE inspection obligations and findings.

What Changed

• Reserve studies must now account for EEE components identified through SB 326 inspections
• The study must include cost estimates for EEE repair or replacement
• Associations must disclose the status of their EEE inspection compliance in the annual budget report

Practical Impact

SB 770 closes the loop between inspections (SB 326) and financial planning (reserve studies). An association that has completed its SB 326 inspection now has specific data about EEE condition — and the reserve study must reflect that data.

Associations that have not yet completed their SB 326 inspection face a disclosure gap: they cannot accurately project EEE-related costs in the reserve study.

Compliance Checklist for California Boards

• Annual budget report includes EEE inspection summary (SB 410 / Civil Code 5300)
• Reserve study addresses EEE components with cost estimates (SB 770)
• SB 326 inspection completed (or scheduled) with qualified inspector
• Fine schedule does not exceed $200 per violation (AB 130 / Civil Code 5850)
• IDR offered before formal enforcement actions
• Hearing process formalized with 10-day written notice requirement
• Resale disclosures cover all 15 items under Civil Code 4525-4530
• Board-confirmed disclosures (litigation, violations, enforcement policy) documented and current
• Insurance coverage summary current and complete
• Meeting minutes for prior 12 months available for disclosure

How CommunityPay Supports California Compliance

CommunityPay maintains an active California compliance profile (Civil Code 4525-4530) that maps every required disclosure item to its data source:

• Financial disclosures (budget, balance sheet, income/expense, assessment status) auto-populate from the live general ledger
• Board-confirmed disclosures (litigation, enforcement policy, meeting minutes) are stored as persistent defaults that pre-fill on future certificates
• Unknown items are surfaced transparently — never omitted — with explanatory statements until the board provides confirmation
• Assessment enforcement policies and meeting minutes are tracked as first-class disclosure items with statutory citations

The platform also provides the underlying financial infrastructure — double-entry fund accounting, enforcement guards, immutable audit trails — that makes accurate disclosures possible in the first place.

Explore CommunityPay's compliance capabilities | Request a demo

For deeper coverage of specific California requirements: - California AB 130 HOA Fine Limits — The $200 cap, hearing process, and IDR/ADR framework - California SB 326: Balcony Inspections and Reserve Planning — Inspection timeline, special assessment risk, and funding strategies - HOA Reserve Study Requirements: WA, OR, CA Compared — How California's reserve study framework compares to Washington and Oregon

This guide covers California HOA disclosure requirements as of 2026. Specific legislative provisions may be subject to amendment. For legal advice specific to your community, consult a California real estate attorney. For a walkthrough of CommunityPay's California compliance profile, contact us.