Community Associations Institute (CAI) California Legislative Action Committee (CLAC) spent the 2026 legislative session advocating on behalf of the approximately 14,500,000 Californians living in 5,065.000 homes in more than 51,250 community associations across the Golden State.
GRASSROOTS ADVOCACY OVERVIEW
In April 2026, California held their annual Advocacy Days and met with 86% of the California Legislature. CLAC participated in , with an additional 56 CAI member advocates who responded to an email call to action and sent over 100 messages to their California Legislators. In total, 84 California advocates traveled to Sacramento to educate lawmakers on a variety of issues impacting community associations; from fighting back on an attempt to reduce local control, to protecting HOA reserve funding, to improving expansive community association reform bills. 
LEGISLATIVE OVERVIEW
California’s 2026 legislative session began on January 5 and adjourned on August 31. The legislature operates in two-year cycles, beginning in odd years. CLAC tracked a total of 185 during the legislative session, including 14 bills with a significant, direct impact on community associations noted in this report. Governor Gavin Newsom has until September 30, 2026, to sign or veto the bills that passed the legislature this session. A bill in California automatically becomes law without the Governor’s signature if the Governor does not sign or veto it within 12 days during the normal session or 30 days at the end of the legislative session. Below are highlights from the 2026 California state legislative session.
PRIORITY LEGISLATION
AB 2050 – Common Interest Developments Reserve Accounts
CLAC supported AB 2050, critical reserve study and funding legislation. The bill, beginning January 1, 2032, would update reserve study requirements for homeowner’s associations by requiring the study to identify the minimum annual reserve contribution needed to ensure the association reserve balance does not fall below zero over the next 30 years. Associations would be required to transfer a minimum of 15% of its operating budget to the reserves fund if the reserves fund is projected to fall below zero at any point over the 30-year projection of the reserve study. The association would also be allowed to utilize a reserve special assessment, equal to 5% of the operating budget, no more than once every 9 years to bring the funding level of the reserves fund back above zero.
CAI supports mandated reserve studies and funding for new and existing community associations as well as periodic reserve study updates. Community associations are responsible for maintenance and replacement of shared common components. These costs are typically determined during the annual budget process and funded by ongoing assessments charged to the homeowners in the community. For new communities, developers must create an initial budget that adequately provides for both operating expenses and reserves. Reserve studies, when prepared in conformance with the Reserve Study Standards provide an in-depth, unbiased perspective from a reserve specialist, reserve professional, or other qualified professional (e.g., engineer or architect).
Safety is the most important factor in any community. In the wake of any issue which arises that would threaten the life or safety of homeowners or the association itself, this legislation would allow associations to utilize a reserve special assessment, equal to 5% of the operating budget, no more than once every 9 years to bring the funding level of the reserves fund back above zero. CLAC Chair Stacie Donnelly testified in support of AB 2050 in all four policy committees that had jurisdiction over the bill, helping usher the bill onto the governor’s desk.
Status: Signed by the Governor on September 29, 2026.
SB 1007 – Common interest developments: annual reports: discipline
CLAC opposed SB 1007, which sought to cap assessment increases at the rate of inflation, a change from existing law which allows assessments to increase by no more than twenty percent. CAI opposes arbitrary limitations on assessment increases. An association’s board must retain reasonable discretion to adjust assessments as needed to effectively manage the community. Inflation caps ignore real costs like insurance, utilities, and repairs that rise faster than inflation. Community associations are mandated by state law to address these issues. Under California statute, associations are only allowed to budget for actual operating costs. There is no profit or fluff built into the budget.
SB 1007 would have force deferred maintenance, leading to large unpredictable special assessments as well as further declining infrastructure if associations cannot obtain financial support to meet maintenance and repair obligations. The bill would also have mandated a membership vote to increase assessments, an ineffective process. Elections are costly and votes involving finances are hard to pass because homeowners often reject necessary budget increases, creating safety risks.
Existing law in California prohibits an association from increasing regular assessments by more than twenty percent, without the approval of a majority of a quorum of members. SB 1007 would have disrupted this proven framework, which has worked through multiple economic cycles without driving unaffordability.
CLAC delegates testified against this bill in legislative hearings. CLAC also engaged in a grassroots campaign urging advocates contact their legislators in Sacramento to express opposition to SB 1007. As a result of multiple calls to action as the bill moved through the Senate, 2,006 messages were sent to the California state senators. Of these messages, 1,210 of them were sent by first time advocates who have not previously responded to a CAI call to action in California. The bill was reported out of the Senate with an amendment advocated by CLAC which limited assessment increase to 8% annually. After the bill was sent to the Assembly and scheduled for a committee vote, an additional call to action was sent out by CLAC to members of the Assembly Housing and Community Development Committee resulting in 88 messages and dozens of phone calls to members of the committee. As a result of these actions and CAI’s advocacy work, the author removed the bill from the committee calendar, effectively killing the bill for the remainder of the session.
Status: Amended and passed in the Senate. Died in committee in the Assembly.
SB 1238 – Common Interest Developments: management
CLAC opposes SB 1238, which would revise the definition of agent to include a person or company that facilitates activities pursuant to specified provisions of the Davis Stirling Act and provides that the agent owes a duty of care that is prudent and provides the highest good faith effort to the board of a homeowner’s association and its members.
While CLAC appreciates the bill author’s intent to improve governance, transparency, and building safety within homeowner associations, the provision in the bill extending a manager’s duty of care to the members of the association will result in increased litigation and costs to associations.
The bill includes language regarding a manager’s ‘duty of care’ to the association and members of the association. CLAC agrees the manager owes a duty of care to the association because of the contractual relationship between the two and supports transparency in management and governance of community associations. However, CAI cannot support extending in statute a manager’s duty to the members of the association. The manager is the association’s agent, and the manager’s contractual duty is owed to the corporation. The association already owes a duty to the members. If the manager fails to comply with the Davis-Stirling Act, that failure is imputed to the association. There is no need to impose a duty on the manager. It will only create litigation expenses which will be passed on to homeowners, further increasing the cost of ownership.
After the bill passed, CAI began a grassroots campaign urging homeowners and community association managers to contact Governor Gavin Newsom to encourage a veto of the bill. At the time of this report, 256 advocates have contacted the governor, including 85 first time advocates who have not previously responded to a CAI call to action in California.
Status: Vetoed by Governor. In Senate. Consideration of Governor’s veto pending.
CAI SUPPORTED THE BELOW BILLS
CAI LACs support legislation that aligns with CAI’s public policy positions. If a LAC believes it may need to consider or adopt any legislative or regulatory position that would be in conflict with these official positions, it must submit a request for a deviation to be considered by CAI’s Government & Public Affairs Committee and/or Board of Trustees.
AB 1892 – Common interest developments: associations
CLAC supported this bill, which clarifies an HOA’s responsibility for restoring interrupted gas, heat, water, or electrical service originating in the common area. It also updates election rules by requiring 30-day notice for electronic secret ballots and shortening the acclamation election notice period from 90 days to 30 days before the nomination deadline.
Status: Signed by the Governor on August 31, 2026.
AB 2579 – Common interest developments: discipline
CLAC sponsored AB 2579, which would have addressed issues related to AB 130, adopted in 2025 and which capped association fines at $100 regardless of the severity of the violation. While AB 130 took into account the needs of communities to address health or safety risks impacting common areas, like fire hardening rules, it failed to address homeowner safety and other serious violations impacting California’s community associations. AB 2579 would have added to the list of exemptions from the $100 cap and fixed the issue with allowing individuals to cure violations prior to hearing of the Board. Prior to receiving a vote in the Assembly, the author moved the bill to the inactive file for improvements in the next session.
Status: Moved to the inactive file by the author and did not move out of the Assembly.
SB 1267 – Common interest developments: electric vehicle charging stations
CLAC supported this bill, which would state the intent of the Legislature to provide an association that complies with those requirements with civil liability protection for injuries and damages emanating from an electric vehicle charging station or its use that the association does not own, except as specified. The bill would additionally make the owner and each successive owner responsible for the costs for the specified damage resulting from the use of the electric vehicle charging station. The bill would require that the installer of the electric vehicle charging station indemnify or reimburse the association or its members for loss or damage caused by the installation of the electric vehicle charging station.
CAI supports legislation that recognizes the core principle of self-governance and co-ownership of common property and the community association housing model. As each association is unique, legislation should allow the community to determine the most efficient, fair, and effective method to provide electric vehicle charging stations. Legislation or policy must respect the financial capability of associations to provide for the stations and allow associations to equitably allocate the cost of the charging stations to those who benefit.
Status: Signed by the Governor on September 20, 2026.
CAI OPPOSED THE BELOW BILLS
CAI LACs oppose legislation that is at odds with CAI’s public policy positions. If a LAC believes it may need to consider or adopt any legislative or regulatory position that would be in conflict with these official positions, it must submit a request for a deviation to be considered by CAI’s Government & Public Affairs Committee and/or Board of Trustees.
AB 956 – Accessory dwelling units and junior accessory dwelling units
CLAC opposed this bill, which would have allowed increased flexibility and construction of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) by updating existing laws to support zoning that permits these structures on single-family residential lots. The bill mandates that local agencies must approve building permits for up to two detached ADUs on such lots, with certain conditions, and prohibits restrictive covenants or conditions that unreasonably limit their construction. Additionally, the updated regulation specifies that a JADU permit cannot be approved on lots that already have two detached ADUs, imposing new procedural responsibilities on local governments. Lastly, the bill stipulates that no reimbursement is required for certain local program mandates as per constitutional provisions.
Importantly, the bill would allow ADUs to be built in common interest developments, including condominiums. As originally drafted, the bill did not align with CAI’s public policy on Accessory Dwelling Units which recognizes the need for affordable housing options, including accessory dwelling units, but opposes legislation which restricts a community association’s ability to adopt reasonable rules and restrictions on these structures. Through CLAC’s advocacy work, the bill was amended back to existing law, but CLAC expects the issue to return in the 2027 legislative session.
Status: Favorably amended. Signed by the Governor on September 29.
AB 1903 – Construction defects
CLAC opposed this bill, which proposed sweeping changes to California’s construction defect laws and would have created major issues for associations and homeowners dealing with construction defects.
Existing law specifies the rights and requirements of a claimant or homeowner to bring a civil action for construction defects of a dwelling, including applicable standards for home construction, detailed prelitigation procedures, statute of limitations, burden of proof, and the damages recoverable. Existing law specifies the rights and prohibitions for a builder to defend against a civil action for construction defects, including a prohibition against a builder obtaining a release or waiver in exchange for repair work mandated by law.
This bill would have modified specific rights, requirements, and prohibitions for the parties to a civil action for construction defects of a dwelling by revising, among other things, the requirements for a prelitigation notice from the claimant to the builder and the evidence a claimant is required to affirmatively demonstrate to make a claim. Among other changes, the bill would have repealed the prohibition on, and, instead, authorize, a builder to obtain a release or waiver in exchange for certain repair work, as specified. Commencing July 1, 2027, the bill would have prohibited an insurer from asserting repairs as a voluntary payment or as a payment made without the insurer’s consent, or denying counting the costs associated with those repairs, against a deductible or self-insured retention. The bill would have provided that its provisions apply to structures subject to the provisions governing the rights of a claimant or homeowner to bring a civil action for construction defects of a dwelling, except as provided. The bill would have further provided that its provisions are severable.
CLAC successfully lobbied for significant amendments prior to the bill’s passage in the Senate Judiciary Committee but remained opposed to the bill. CLAC had positive conversations over the summer recess, and the bill sponsor made additional positive changes to the bill as a result, allowing CLAC to drop its opposition to the bill late on the final day of session. However, the bill, as amended by the Senate, was held at the desk and never submitted for a concurrence vote in the Assembly, effectively killing the bill. CLAC believes the final agreed-to version is likely to come back in 2027.
Status: Passed Assembly; Amended in Senate. Failed to receive a concurrence vote in Assembly. Successfully died at adjournment.
AB 2439 – Common Interest Developments governing documents: assessments
CLAC opposed this bill, which prohibits governing documents of common interest developments from imposing restrictions on a member’s use of public streets, except when enforcing public health or safety standards.
The legislation also impacts the payment of assessments. Under this legislation, if the designated party for receiving assessment payments changes, the association must notify owners individually via electronic delivery (for those who have opted in) or first-class mail (with a certificate of mailing) within 60 days. If an association member misses two consecutive assessment payments after such a notice, the association must send a certified letter with return receipt requested. Associations must maintain these records for five years.
CAI recommends that every association establish a collection policy that is adopted by its board of directors, reviewed by the community association’s attorney, and distributed annually to its owners. The policy must be subject to the provisions of the governing documents and comply with all applicable laws of the jurisdiction.
CAI believes that in order to fully realize the benefit of the lien priority, the lien must be perpetually renewable, meaning that it may not be limited by a single priority payment. While the lien priority may be as modest as six months’ worth of assessments, there should be no limit over time. By way of example, the payment of a priority claim in the current year should not affect the ability to reassert a priority claim if a foreclosure commences in a subsequent year.
If the association fails to follow proper lien procedures or notification requirements, it bears the costs of restarting the process and is liable for fees. Three violations within five years trigger a $1,000 civil penalty for an association, and the board must notify all members of repeated noncompliance. notification records for five years.
Status: Vetoed by the Governor on September 20, 2026.
SB 222 – Residential heat pump systems: water heaters and HVAC: installations
CLAC opposed this bill, which sought to establish a statewide framework to streamline and encourage the installation of residential heat pump water heaters and HVAC systems. The legislation does not apply to new residential construction, focusing solely on retrofits and replacements in existing homes.
If this legislation becomes law, by July 1, 2027, local governments must offer asynchronous inspections, removing the requirement for contractor and inspector to be simultaneously present. By July 1, 2028, real-time, online automated permitting for installations is required for qualifying contractors, significantly reducing administrative burdens. Certain simple installations would not require local permits nor inspections.
Under this legislation, homeowner associations and similar bodies are prohibited from enforcing rules or covenants that restrict or prevent the replacement of gas appliances with electric ones or the installation of heat pump water heaters and HVAC systems.
CAI opposes retrofitting requirements with which compliance could be costly for community associations. CAI also opposes legislation that impedes on a community association’s ability to establish reasonable rules and regulations for residents, recognizing that the long-term operation and social success of a community association is heavily dependent upon a rulemaking and rules enforcement process that operates in the best interest of the community and guarantees fair and consistent treatment of all residents.
Status: Passed both chambers of the legislature. Signed by the Governor on September 28, 2026.
CAI SOUGHT AMENDMENTS TO THE BELOW BILLS
CAI works with legislators to champion amendments to legislation to help the language better align with CAI’s public policy positions on any given topic impacting the community association industry.
AB 1684 – Common interest development cooling systems
CAI sought amendments to this legislation, which would make any HOA governing document, architectural guideline, deed restrictions, or policy that prohibits or restricts the installation, upgrade, replacement, or use of a cooling system void and unenforceable. It would also make it unlawful for an association to block or limit a member from installing or using a cooling system in their separate interests, subject to certain exceptions. An association that willfully violates these provisions would be liable for actual damages and a civil penalty of up to $2,000 paid to the member.
Status: Passed both chambers of the legislature. Signed by the governor on September 30.
CAI MONITORED THE BELOW BILLS
CAI LACs monitor legislation with the potential to impact those living and working in community associations across their state, as well as legislation that may indirectly or unintentionally impact community associations.
AB 1184 – Common interest developments: association management and meeting procedures
CLAC monitored this legislation, which pertains to community association board meetings and procedures. The legislation prohibits a majority of board members from conducting business or deliberations outside authorized meetings via any series of communications, except in emergencies. Informational, scheduling, and ministerial communications are exempt. Additionally, if open session meetings are recorded, those recordings become official association records and must be made available to members like written minutes. Electronic distribution of minutes cannot incur a charge, and posting minutes on the association website satisfies distribution requirements. The legislation also removes the secret ballot requirement for operating rule changes and adds a requirement to include information on any active litigation involving the association in annual budget reports.
Status: Bill amended, passed Senate and returned to Assembly for concurrence vote. Died in Assembly at adjournment.
AB 2035 – Common interest developments: declarations: amendments
CLAC monitored this legislation, which amends the Davis-Stirling Act by modifying the court approval process for amending declarations in common interest developments. For qualifying senior citizen housing developments, it lowers the threshold for court-approved amendments from more than 50% of member votes to more than 37%, provided specific conditions are met. Those conditions include that the declaration has not been amended in at least 35 years.
Status: Passed both chambers of the legislature. Awaiting action by the governor.
CLAC monitored this legislation, which would prohibit governing documents from limiting or prohibiting the owner of a separate interest within a common interest development from replacing existing residential windows with California Energy Code compliant windows. CLAC sought amendments to the legislation and successfully worked with the author to add reasonable restrictions for the associations and responsibility of the owner.
Status: Passed both chambers of the legislature. Signed by the governor on September 29.
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