California Statewide Rule

California HOA Assessments, Liens & Foreclosure (Davis-Stirling Act)

Heavy RestrictionsApplies statewide across California (2026)

Key Facts

Late charge: 10% of delinquent assessment or $10, whichever is greater (Civ. Code 5650)
Max interest: 12% per year, starting 30 days after due (Civ. Code 5650)
Pre-lien notice: 30-day itemized notice by certified mail (Civ. Code 5660)
Foreclosure threshold: $1,800 delinquent OR more than 12 months overdue (Civ. Code 5720)
Delinquency starts: 15 days after assessment due date (Civ. Code 5650)

Last verified: September 5, 2026

Summary

California HOAs may levy regular and special assessments, charge late fees and interest, record liens, and ultimately foreclose on delinquent owners under the Davis-Stirling Act. State law (Civil Code sections 5650-5740) caps fees and interest and imposes strict notice steps and a delinquency threshold before any foreclosure may proceed.

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.

View official code

Full Breakdown

Under Civil Code section 5650, an assessment is delinquent 15 days after it is due. The HOA may add a late charge of 10% of the delinquent amount or $10, whichever is greater, plus interest up to 12% per year and reasonable collection costs and attorney's fees. Before recording a lien, the association must mail a 30-day itemized pre-lien notice by certified mail (section 5660). Section 5720 bars nonjudicial foreclosure to collect regular assessments unless the delinquency (excluding fees, interest, and late charges) reaches $1,800 or is more than 12 months overdue. Smaller debts must be pursued via small claims or a recorded lien instead.

Violations & Penalties

Owners who fall behind face late fees, 12% interest, collection costs, attorney's fees, a recorded lien and, once the $1,800/12-month threshold is met, judicial or nonjudicial foreclosure and forced sale of the home.

Frequently Asked Questions

Can a California HOA foreclose on my home for unpaid dues?

Yes, but only after the unpaid regular assessments (not counting late fees, interest, or collection costs) total at least $1,800 or are more than 12 months overdue, per Civil Code section 5720. Below that, the HOA must use small claims court or a recorded lien.

How much can a California HOA charge in late fees and interest?

Civil Code section 5650 caps late fees at 10% of the delinquent assessment or $10 (whichever is greater) and interest at 12% per year, beginning 30 days after the assessment is due, unless the governing documents set lower amounts.

Does the HOA have to warn me before recording a lien?

Yes. Civil Code section 5660 requires the association to mail an itemized notice of the debt and collection options by certified mail at least 30 days before recording an assessment lien.

Sources

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