California Homeowner Association HOA and Condo Regulations Summary Guide for 2020

ByRussell Munz
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Some states have comprehensive regulations for the HOA and Condominium Association industry.  California having the second largest number of community associations in the country, with over 46,000 associations, is one of them.  We have a growing number of homeowner association and condo community clients in California and wanted to distill these regulations into an easier to read format to make it easier for them to stay in compliance.  Here is our California Homeowner Association HOA and Condo Regulations Summary Guide for 2020

Here is an excerpt:

Late Fees & Interest on Late Payments

As provided for in Civil Code $5650(b), regular and special assessments are delinquent 15 days after they become due (unless an association’s governing documents provide a longer period of time). If an assessment is delinquent, associations may recover all of the following:

  1. A late charge not to exceed 10% of the delinquent assessment or $10.00, whichever is greater (unless the CC&Rs specify a smaller amount).
  2. Interest on delinquent assessments, reasonable fees and costs of collection, and reasonable attorney’s fees, at an annual interest rate not to exceed 12%, commencing 30 days after the assessment becomes due, unless the CC&Rs specify a lower interest rate, in which case the lesser rate applies.
  3. Reasonable attorneys’ fees and costs incurred in collecting the delinquent assessment.

Authority to Collect. The authorization to collect late charges and interest need not be in the governing documents. Authority is granted by Civil Code $5650(b).


Fee or Penalty? Some try to argue that late fees cannot be greater than documented expenses to the HOA due to the delinquency. They use Civil Code $5600 to make their argument because the statute restricts associations from posing assessments or fees that exceed the amount necessary to defray the costs for which it is levied. This fee restriction does not apply to late charges. Associations are allowed to charge a 10% fee regardless of the true costs incurred. That’s because the “fee” is actually a penalty to encourage owners to be on time with their payments.


One Late Charge Per Assessment. Associations cannot levy late charges month after month on the same unpaid assessment. A late charge is a one-time penalty of 10% or $10 (whichever is greater) to encourage timely payment of assessments. (Civ. Code $5650) Thereafter, the

We are also making this 47-page California HOA and Condo Regulations Summary Guide available to you as well free of charge.

To download this guide CLICK HERE.