Many associations have approved a budget for 2026 but have not increased their assessments sufficiently to cover all known and anticipated expenses including at least 10% of the budget for reserves. These associations and their members should anticipate special assessments next year and possibly a delay in getting essential work completed. It is the responsibility of all HOA boards to approve a budget that covers all expenses. See: Breach of Fiduciary Duty by Directors of Homeowner Associations.

Sometimes HOAs need to borrow funds for large projects because their reserves are inadequate. These projects often include new roofs, the replumbing of buildings, major termite repairs and tenting, and repaving. Loans to homeowner associations are most often made by commercial banks or credit unions. They require extensive legal documentation and financial information, which our company can provide the lender. Contact Michael Chulak about the process and the cost of this service.

Community gardens have become popular amenities that can often be offered to homeowners within condominiums developments where land is available for growing flowers and/or vegetables. A community garden is a parcel of land that is divided among a group of homeowners where each person can grow flowers and/or vegetables on a designated plot of land. Sometimes the association will charge a small fee to each owner to cover the cost of water and insurance. A community garden is not the same as a collective garden where the land is not divided into individual plots. With a collective garden, the harvest belongs to the entire group and is divided according to an agreement. Collective gardens are not popular in the United States.

California recently enacted AB 130 which became effective on June 30, 2025. It is now California Civil Code Section 5855.

The law caps HOA fines to $100 per violation unless the violation involves “a significant and imminent threat to health or safety.” Unfortunately our brilliant state legislature has opened the door to litigation by not providing clear definitions of key terms. The result of the new law is to make it easier for those who violate CC&Rs and Operating Rules to do so without facing meaningful penalties. This may also be the intent of the law.

The new law is nearly certain to result in more violations of HOA CC&Rs and Operating Rules and it will undoubtedly cost associations more money to prevent these violations. Most HOAs will be required to rewrite most their rules at additional expense in order to comply.

Unless the CC&Rs of a community association prohibit spending association funds on Christmas or other holiday decorations and lights, in or on the common areas, boards may spend a reasonable amount of money on these items, assuming funds are available. If criticized, board members can cite the business judgment rule.

Members of HOAs that refuse to provide their email address to the management company will not receive timely notices. This should be obvious. When the management company does not have an email address, notices must be mailed which means they may not be received for days. Some notices are emergency notices; others deal with the shut-off of utilities. Members that refuse to provide their email address are creating inconvenience and risk for themselves.

Community associations that fail to meet the January 1, 2026 deadline for obtaining an Elevated Structure Inspection are asking for trouble for at least the following reasons: (1) They will be subject to financial penalties; (2) They will be placing their members, guests, and visitors at unnecessary risk; (3) They will make it extremely difficult for owners to refinance their property; and (4) They will make it far more difficult for owners to sell their property at a good price.

Some HOA management companies are requiring members of associations to mail their monthly assessments to out-of-state addresses. Given that it takes significantly longer for assessment checks to reach the management company’s out-of-state address, more late fees are being paid by owners which could be avoided if a local address was utilized.

October, November, and December are considered fire season in Southern California because of the annual Santa Ana winds and history of wild fires. See: Brush Clearance Minimum Guidelines and Fire and Carbon Monoxide Safety Checklist.