Cal. Civ. Code §5605
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Assessment increase limits — 20% / 5% caps without member approval
Limits the board's authority to raise assessments without member approval. The board cannot increase regular assessments more than 20% over the preceding fiscal year, or levy special assessments greater than 5% of budgeted gross expenses, without owner approval by majority of a quorum.
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Statutory Text
Verified Aug 5, 2026 · CA_LEG_INFO
Civil Code - CIV DIVISION 4. GENERAL PROVISIONS [3274 - 9566] ( Heading of Division 4 amended by Stats. 1988, Ch. 160, Sec. 16. ) PART 5. Common Interest Developments [4000 - 6150] ( Part 5 added by Stats. 2012, Ch. 180, Sec. 2. ) CHAPTER 8. Assessments and Assessment Collection [5600 - 5740] ( Chapter 8 added by Stats. 2012, Ch. 180, Sec. 2. ) ARTICLE 1. Establishment and Imposition of Assessments [5600 - 5625] ( Article 1 added by Stats. 2012, Ch. 180, Sec. 2. ) 5605. (a) Annual increases in regular assessments for any fiscal year shall not be imposed unless the board has complied with paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b) of Section 5300 with respect to that fiscal year, or has obtained the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election. (b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the association’s preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election. (c) (1) (A) For an association that records its original declaration on or after January 1, 2025, notwithstanding more restrictive limitations placed on the board by the governing documents, except as provided in paragraph (3), the board shall not impose a regular assessment against an owner of a deed-restricted affordable housing unit that is more than 5 percent plus the percentage change in the cost of living, not to exceed 10 percent greater than the preceding regular assessment. (B) For purposes of this paragraph, “percentage change in the cost of living” means the percentage change from April 1 of the prior year to April 1 of the current year in the regional Consumer Price Index for the region where the residential real property is located, as published by the United States Bureau of Labor Statistics. If a regional index is not available, the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations, shall apply. (2) For an association that records its original declaration on or after January 1, 2025, notwithstanding any other law, except as provided in paragraph (3), the board may impose an assessment against an owner of a deed-restricted affordable housing unit that is lower than the assessment imposed against other owners according to the proportional ownership of total subdivision interests subject to assessments. (3) This subdivision does not apply to any of the following: (A) A development where the percentage of the units, exclusive of a manager’s unit or units, that are deed-restricted affordable housing units exceeds the percentage required by an …
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Assessment
| Ref | Requirement |
|---|---|
| (b) | Special assessments adopted by the board alone cannot exceed 5% of the year's budgeted expenses. Anything larger requires owner approval. |
| (b) | A board cannot raise regular dues by more than 20% in a single year without an owner vote — a quorum of owners must vote and a majority must approve. |
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Legal references last verified July 4, 2026.
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