Palo Alto HOA Rules: Assessment & Dues Rules (2026)

Under the Davis-Stirling Act, regular assessments cannot be increased by more than 20% over the prior year, and non-emergency special assessments in any fiscal year cannot exceed 5% of the current budget, unless a majority of members approve a higher amount under Civil Code 5605. Emergency assessments for extraordinary expenses, court orders, or threats to personal safety may be imposed without a vote. Delinquent assessments accrue late fees, interest, and collection costs as permitted by the governing documents. Before recording a lien on an owner's unit, the association must provide a pre-lien letter at least 30 days in advance under Civil Code 5660 listing the amount owed, dispute rights, and payment plan availability. Foreclosure is limited by Civil Code 5720 and requires delinquency of at least 12 months or $1,800.