CAI-CLAC Update
The 2026 California legislative session is well underway, the second year in our two-year legislative cycle. CAI-CLAC is tracking numerous bills this cycle, including a partial “fix” to AB 130. This brief will focus on the most impactful bills to affect HOAs, discussed below. All CAI-CLAC’s 13 “hot bills” can be reviewed on the CAI-CLAC website at: https://caiclac.com/legislative-session-hot-bills/.
AB 2050 (Caloza)
California already requires HOA budget reports to summarize reserve accounts and requires reserve studies with visual inspections of major components the association must maintain. In other words: boards are already supposed to keep an eye on the expensive stuff before it becomes very expensive stuff.
AB 2050 would tighten that framework by requiring reserve studies to identify a minimum annual contribution needed to keep reserve balances from dropping below zero over the next 30 years. Translation: no more crossing fingers and hoping the deferred maintenance components like roof, pavement, and plumbing all agree to wait their turn.
The bill would also require associations to fund reserves at least to that minimum level each year. If they cannot, they can levy a special assessment to restore the reserve account to the minimum threshold, once every 9 years.
If passed, the bill would take effect January 1, 2032, giving associations 6 years to phase in compliance. The goal is to address chronic reserve underfunding, deferred maintenance, and the financing headaches that can accompany these issues.
CAI-CLAC sponsored and supports AB 2050.
AB 2579 (Petrie-Norris)
AB 2579 is a response to AB 130, which took effect July 1, 2025. The big headline from AB 130 was the $100 cap on fines per violation, except in certain health or safety situations. The trouble is, the law left several practical questions hanging, most notably what counts as a “violation” and whether an owner‘s last-minute cure of the violation right before the hearing wipes the slate clean.
AB 2579 would amend Civil Code Section 5855 to clarify that habitual, repeated, or ongoing violations are not magically “cured” simply because they naturally ceased or are not happening at the exact moment of the hearing. Nice try, but enforcement should be permissible in these circumstances.
The bill was amended on April 30, 2026, to remove the CAI-CLAC recommended list of violations that could lead to fines above $100 and instead the bill adds Civil Code Section 5851 which directs the Department of Real Estate to create and publish that list by January 1, 2028. The list would be limited to violations involving significant risks to health, safety, or the integrity of the HOA.
CAI-CLAC supports this bill to address some of the concerns created by language in AB 130.
SB 1007 (Menjivar)
SB 1007 would significantly limit a board’s ability to raise regular assessments by requiring a majority of a quorum of member approval to impose a regular assessment increase that is 8% more than the prior year’s assessment. Current law allows increases of up to 20 percent without that member vote, so this would be a major shift.
The bill would also require the annual budget report and related summaries to include a high-level breakdown of what regular assessments pay for, along with a statement about management company compensation. Think quick budget snapshot, aka “pie chart.”
If the board does not include that breakdown, it could lose the ability to raise regular assessments that year. The bill would also require an association seeking to impose a monetary penalty to provide the member with any physical evidence supporting the alleged violation at least 5 business days before the hearing or response deadline.
CAI-CLAC opposes SB 1007 as currently written because limiting assessment increases could make it harder for associations to keep pace with real operating and maintenance costs.
AB 1892 (Davies)
AB 1892 is designed to fix timing issues in the vote by acclamation process. The practical effect is to better align that process with the existing election timeline, making it easier for associations to use acclamation in an election where there are the same number of candidates or fewer than open board seats.
Specifically, the bill would shorten the initial notice timeline under Civil Code Section 5103 from 90 days to 30 days before the deadline. It would also require associations to send individual notice to members voting electronically no later than 30 days before the election.
CAI-CLAC supports AB 1892, and at this point there is no known opposition.
AB 1903 (Wicks)
AB 1903 would substantially change the construction defect claims process governed by Civil Code Secs. 895-944 (commonly referred to as SB 800) by requiring proof of actual damage caused by a known defect before a claim can move forward. In practice, that would shift more investigation and repair costs onto homeowners and associations at the front end.
The bill would also create an alternative process for “certified buildings.” A builder could obtain that status through private inspection, repairs, and reinspection during construction by a licensed architect, engineer, or general contractor. Once certified, the building’s status could not later be challenged.
The builder of a certified building could also set its own post-construction claims process and would have broad rights to inspect and repair within timelines it establishes. If a claimant delays or blocks access for more than 7 days from the agreed date, the builder could be treated as having received a release.
CAI-CLAC opposes this bill.
Other notable bills:
SB 1238 (Wahab)
Existing law defines an agent as one who represents another, called the principal, in dealings with third persons. This bill would amend Civil Code Section 2295 to revise the above-described definition of agent to include a person or company that facilitates activities pursuant to specified provisions of the act and is required to provide a duty of care (a type of legal obligation) to the board of a homeowner’s association and its members.
This bill would require the owner to provide additional information to a prospective purchaser, including, among other things, a separate disclosure regarding exterior elements and units requiring imminent repairs, if the association employs an association manager or management company.
This bill would also amend Civil Code Section 5510 to prohibit the board from expending reserve funds for litigation, legal services, or to threaten litigation involving any real property owner of record or relative of the real property owner of record that is a member of the homeowner’s association.
CAI-CLAC opposes this bill.
AB 1184 (Patterson)
This bill would make substantive changes to the Open Meeting Act, association records inspection, and operating rule changes, aiming to enhance accountability and openness in governance and operations.
CAI-CLAC is neutral on this bill.
AB 1684 (Ward)
This bill would make any provision of the governing documents or architectural guidelines void and unenforceable if it prohibits or restricts the installation, upgrade, replacement, or use of a cooling system. 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
CAI-CLAC opposes this bill unless amended.
SB 222 (Weiner)
This bill would make any provision of the governing documents, architectural guidelines, or policies void and unenforceable if the provision prevents the replacement of a fuel-gas-burning appliance with an electric appliance. The bill would also make any covenant, restriction, or condition contained in any, among other specified agreements, deed, and any provision of a governing document, that effectively prohibits or restricts the installation or use of a residential heat pump water heater or heat pump HVAC system, void and unenforceable.
CAI-CLAC opposes this bill.
SB 908 (Wiener)
This bill 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.
This legislative update was prepared by CAI-San Diego Chapter’s Legislative Support Committee.
For more information on the above bills and how to support CAI’s advocacy efforts, visit www.caiclac.com.