Calif.: Bill that could raise fees for millions of homeowners passes state legislature

A new bill that could lead to millions of homeowners in the Golden State paying higher homeowners association (HOA) fees has passed the California state legislature.

Taking effect in January 2032, Assembly Bill 2050 would amend state law to require California homeowners associations (HOAs) to maintain a positive reserve balance across a 30-year projection.

Under the bill, if an association projects a financial shortfall over that timeframe, it must transfer at least 15% of its gross annual budget into its reserve account. If standard operating funds cannot cover this requirement, the HOA is legally mandated to levy a special assessment on property owners.

The legislation aims to ensure HOAs properly fund ongoing maintenance and structural repairs, with the text stressing that proactive savings are vital to protect health, safety, and property values.

 

However, media reports highlight growing consumer anxiety over potential price hikes — particularly given that nearly a quarter of California households live in HOA-governed communities.

“To protect the health, safety, and property values of homeowners, it is imperative that homeowners’ associations proactively and adequately save for these significant long-term structural and operational obligations,” the text reads.

California Governor Gavin Newsom (D-Calif.)

 

has until September 30^th to sign or veto the bill.

Credit:  https://www.oann.com/