Cal. Corp. Code §7110
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Nonprofit Mutual Benefit Corporations — Formation
The opening section of the California Nonprofit Mutual Benefit Corporation Law (Corp Code §§7110–8910). Establishes the formation and powers of nonprofit mutual benefit corporations — the corporate form used by the vast majority of California HOAs and condominium associations. Mutual benefit corporations exist to benefit their members (homeowners), distinct from public benefit corporations (§5110+, serving charitable purposes) and religious corporations (§9110+).
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Statutory Text
Verified Aug 5, 2026 · CA_LEG_INFO
Corporations Code - CORP TITLE 1. CORPORATIONS [100 - 14707] ( Title 1 enacted by Stats. 1947, Ch. 1038. ) DIVISION 2. NONPROFIT CORPORATION LAW [5000 - 10841] ( Heading of Division 2 amended by Stats. 1978, Ch. 567. ) PART 3. NONPROFIT MUTUAL BENEFIT CORPORATIONS [7110 - 8910] ( Part 3 added by Stats. 1978, Ch. 567. ) CHAPTER 1. Organization and Bylaws [7110 - 7160] ( Chapter 1 added by Stats. 1978, Ch. 567. ) ARTICLE 1. Title and Purposes [7110 - 7111] ( Article 1 added by Stats. 1978, Ch. 567. ) 7110. This part shall be known and may be cited as the Nonprofit Mutual Benefit Corporation Law. (Added by Stats. 1978, Ch. 567.)
Governance
| Ref | Requirement |
|---|---|
| When the two statutes overlap, the more specific HOA-focused Davis-Stirling Act wins. When Davis-Stirling is silent — formation, mergers, dissolution, indemnification — the Corp Code's mutual benefit provisions take over. | |
| Most California HOAs are incorporated as 'nonprofit mutual benefit corporations' — a specific corporate form created to serve the corporation's members. The Corp Code gives them their corporate existence; Davis-Stirling tells them how to operate as community associations. | |
| (a) | Unlike public benefit nonprofits (which serve the broader public) and religious nonprofits (which serve their faith community), mutual benefit nonprofits serve their MEMBERS. HOAs serving their owners fit cleanly into this category. |
| (b) | The Corp Code gives HOAs broad statutory powers as corporations: to sue, contract, own and sell property, borrow money, levy assessments, and indemnify their directors. These corporate powers exist independently of any specific HOA-statute grant. |
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Legal references last verified July 4, 2026.
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