New California law could raise HOA fees for millions of homeowners
A bill pending Gov. Gavin Newsom's signature would force homeowners associations to keep larger reserve funds and may trigger special assessments, potentially increasing fees for many Californians.
The pending legislation, Assembly Bill 2050, would obligate homeowners associations across California to sustain a 30-year reserve account and to conduct a reserve-fund study. Beginning in January 2032, any HOA whose projected reserves fall below zero must allocate a minimum of 15% of its gross annual budget to the reserve fund each year. Should the HOA’s operating budget be insufficient for this transfer, the bill mandates a special assessment, effectively raising homeowner fees.
Nearly 25% of California households pay HOA dues, so the law could impact millions. Consumer advocates argue the bill lacks caps on fee increases, while supporters claim it secures long-term maintenance funding. The governor has until September 30 to act on the proposal.
Why it matters
The bill could increase monthly housing costs for millions of Californians and reshape how community finances are managed.
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