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California · Davis-Stirling Act

The one election that cannot go electronic.

A board may raise regular assessments by 20 percent, and levy special assessments up to 5 percent of budgeted expenses, on its own. Past that it needs a vote of the members — a secret-ballot election, held on paper, with a quorum of more than half.

Article Civ. Code §§ 5600–5625 Chapter 8, Assessments · Article 1 Sections 6 Text verified 2026-10-11

A floor and a ceiling in two sentences

§ 5600(a) makes levying a duty: the association shall levy regular and special assessments sufficient to perform its obligations. Subdivision (b) caps it from the other side: it shall not impose or collect an assessment or fee exceeding the amount necessary to defray the costs for which it is levied. An association that under-funds and one that over-collects both breach the same section.

20 percent, 5 percent, and what lies past them

§ 5605(b) sets the board's own authority, notwithstanding more restrictive limitations in the governing documents. Without a member vote the board may not:

  1. impose a regular assessment more than 20 percent greater than the preceding fiscal year's; or
  2. impose special assessments that in the aggregate exceed 5 percent of the association's budgeted gross expenses for that fiscal year.

And subdivision (a) adds a condition most boards never check: an annual increase in regular assessments may not be imposed at all unless the board complied with seven of the twelve items in the annual budget report — paragraphs (1), (2), (4), (5), (6), (7) and (8) of § 5300(b) — for that fiscal year. Miss the budget report, lose the increase.

Three statutes meet here, and together they decide the whole thing

It is an election. § 5100(a)(1): elections regarding assessments legally requiring a vote shall be held by secret ballot under the election article — so it needs election operating rules and an independent inspector of elections.

It cannot be electronic. § 5105(i) permits an electronic secret ballot except for an election regarding regular or special assessments, as provided for in Chapter 8 — this chapter. Every other association vote may move online; this one stays on paper.

And the quorum is higher. § 5605(d)(3) defines quorum, for this section, as more than 50 percent of the members. Not the 20 percent that § 5115 allows a reconvened director election to fall back on. More than half the membership has to return a paper ballot, or the increase fails.

The exceptions

§ 5610 lifts the caps for an emergency, and defines one narrowly: an extraordinary expense ordered by a court; one necessary to operate, repair or maintain the development; or one that could not reasonably have been foreseen when the budget was prepared — the last requiring a board resolution with findings, in the minutes.

§ 5605(c) runs the other way, and is new. AB 572 added a cost-of-living ceiling on increases charged to affordable housing units — but only in associations that recorded their original declaration on or after 1 January 2025, and not where deed-restricted affordable units exceed the stated share, nor in a development of 20 units or fewer.

Notice, and two things an assessment is not

§ 5615: individual notice of any increase, not less than 30 nor more than 60 days before it becomes due. Another window rather than a deadline — notice given 90 days out does not comply.

§ 5620 exempts regular assessments from execution or levy, except for consensual pledges approved by a majority of a quorum under § 4070. And § 5625 forbids assessing on the taxable value of a separate interest — unless the association was already doing so on or before 31 December 2009 under its governing documents. A rule frozen at a date, which is why it reads oddly.

Civil Code § 5600 — the text

The Duty to Levy, and the Ceiling on What May Be Levied
Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.

(a)Except as provided in Section 5605, the association shall levy regular and special assessments sufficient to perform its obligations under the governing documents and this act.
(b)An association shall not impose or collect an assessment or fee that exceeds the amount necessary to defray the costs for which it is levied.

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5600.json — the same text with its subdivision anchors, dates and sources.

Civil Code § 5605 — the text

The 20 Percent and 5 Percent Caps, and the Vote to Exceed Them
Amended by Stats. 2023, Ch. 745, Sec. 1. (AB 572) Effective January 1, 2024.

(a)Annual increases in regular assessments for any fiscal year shall not be imposed unless the board has complied with paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b) of Section 5300 with respect to that fiscal year, or has obtained the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.
(b)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.
(c)(1)(A)For an association that records its original declaration on or after January 1, 2025, notwithstanding more restrictive limitations placed on the board by the governing documents, except as provided in paragraph (3), the board shall not impose a regular assessment against an owner of a deed-restricted affordable housing unit that is more than 5 percent plus the percentage change in the cost of living, not to exceed 10 percent greater than the preceding regular assessment.
(c)(1)(B)For purposes of this paragraph, “percentage change in the cost of living” means the percentage change from April 1 of the prior year to April 1 of the current year in the regional Consumer Price Index for the region where the residential real property is located, as published by the United States Bureau of Labor Statistics. If a regional index is not available, the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations, shall apply.
(c)(2)For an association that records its original declaration on or after January 1, 2025, notwithstanding any other law, except as provided in paragraph (3), the board may impose an assessment against an owner of a deed-restricted affordable housing unit that is lower than the assessment imposed against other owners according to the proportional ownership of total subdivision interests subject to assessments.
(c)(3)This subdivision does not apply to any of the following:
(c)(3)(A)A development where the percentage of the units, exclusive of a manager’s unit or units, that are deed-restricted affordable housing units exceeds the percentage required by an applicable zoning ordinance in effect at the time the development received final approval.
(c)(3)(B)A development that is located within a city, county, or city and county that does not have an applicable zoning ordinance requiring a percentage of deed-restricted affordable housing units and meet either of the following conditions:
(c)(3)(B)(i)The percentage of the units, exclusive of a manager’s unit or units, that are deed-restricted affordable housing exceeds 10 percent of the total number of units in the development at the time the development received final approval.
(c)(3)(B)(ii)If the development met the requirements described in subparagraph (B) of paragraph (1) of subdivision (b) of Section 65912.122 of the Government Code and was approved pursuant to Section 65912.124 of the Government Code, the percentage of the units, exclusive of a manager’s unit or units, that are deed-restricted affordable housing exceeds 15 percent of the total number of units in the development at the time the development received final approval.
(c)(3)(C)A development of 20 units or fewer.
(d)For the purposes of this section, all of the following definitions apply:
(d)(1)“Affordable housing unit” means a unit occupied by, or available at affordable housing cost to, lower income and moderate-income households, as defined by Sections 50079.5 and 50052.5, respectively, of the Health and Safety Code.
(d)(2)“Final approval” has the same meaning as defined in clause (ii) of subparagraph (D) of paragraph (2) of subdivision (o) of Section 65589.5 of the Government Code.
(d)(3)“Quorum” means more than 50 percent of the members.

Sources differ. Text taken verbatim from the Legislative Counsel of California official code database and checked word for word against an independent publisher. The two sources disagree on one word: the official database reads “as defined by Sections 50079.5 and 50052.5” where california.public.law reads “Section”. The plural is what the Legislative Counsel publishes and is what two citations require. The same substitution appears at §§ 4210, 5310, 5350 and 5375 — in every case immediately before a list of two or more section numbers and nowhere else, which is where the second source's own citation-linking rewrites the word.

What this section used to say

Read by comparing the Legislative Counsel's biennial publications of the code, one per session. The earliest is the 2013–2014 publication, which already carries the Act in its present numbering, so changes are recorded from the publication after it onward. This matters beyond the record: § 5145 gives a member one year to challenge an election, and the text that governs is the text in force on the day it was held, not today's.

  1. AB 572in force 2024-01-01

    Amended by Stats. 2023, Ch. 745, Sec. 1. (AB 572) Effective January 1, 2024.

    14 subdivisions changed

    See what changed
    1. (c)For the purposes of this section, “quorum” means more than 50 percent of the members.
    2. (c)(1)(A)For an association that records its original declaration on or after January 1, 2025, notwithstanding more restrictive limitations placed on the board by the governing documents, except as provided in paragraph (3), the board shall not impose a regular assessment against an owner of a deed-restricted affordable housing unit that is more than 5 percent plus the percentage change in the cost of living, not to exceed 10 percent greater …
    3. (c)(1)(B)For purposes of this paragraph, “percentage change in the cost of living” means the percentage change from April 1 of the prior year to April 1 of the current year in the regional Consumer Price Index for the region where the residential real property is located, as published by the United States Bureau of Labor Statistics. If a regional index is not available, the California Consumer Price Index for All …
    4. (c)(2)For an association that records its original declaration on or after January 1, 2025, notwithstanding any other law, except as provided in paragraph (3), the board may impose an assessment against an owner of a deed-restricted affordable housing unit that is lower than the assessment imposed against other owners according to the proportional ownership of total subdivision interests subject to assessments.
    5. (c)(3)This subdivision does not apply to any of the following:
    6. (c)(3)(A)A development where the percentage of the units, exclusive of a manager’s unit or units, that are deed-restricted affordable housing units exceeds the percentage required by an applicable zoning ordinance in effect at the time the development received final approval.
    7. (c)(3)(B)A development that is located within a city, county, or city and county that does not have an applicable zoning ordinance requiring a percentage of deed-restricted affordable housing units and meet either of the following conditions:
    8. (c)(3)(B)(i)The percentage of the units, exclusive of a manager’s unit or units, that are deed-restricted affordable housing exceeds 10 percent of the total number of units in the development at the time the development received final approval.
    9. (c)(3)(B)(ii)If the development met the requirements described in subparagraph (B) of paragraph (1) of subdivision (b) of Section 65912.122 of the Government Code and was approved pursuant to Section 65912.124 of the Government Code, the percentage of the units, exclusive of a manager’s unit or units, that are deed-restricted affordable housing exceeds 15 percent of the total number of units in the development at the time the development received final …
    10. (c)(3)(C)A development of 20 units or fewer.
    11. (d)For the purposes of this section, all of the following definitions apply:
    12. (d)(1)“Affordable housing unit” means a unit occupied by, or available at affordable housing cost to, lower income and moderate-income households, as defined by Sections 50079.5 and 50052.5, respectively, of the Health and Safety Code.
    13. (d)(2)“Final approval” has the same meaning as defined in clause (ii) of subparagraph (D) of paragraph (2) of subdivision (o) of Section 65589.5 of the Government Code.
    14. (d)(3)“Quorum” means more than 50 percent of the members.

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5605.json — the same text with its subdivision anchors, dates and sources.

Civil Code § 5610 — the text

Emergency Increases Outside the Caps
Amended by Stats. 2024, Ch. 288, Sec. 3. (SB 900) Effective January 1, 2025.

Section 5605 does not limit assessment increases necessary for emergency situations. For purposes of this section, an emergency situation is any one of the following:
(a)An extraordinary expense required by an order of a court.
(b)An extraordinary expense necessary to operate, repair, or maintain the common interest development or any part of it for which the association is responsible where a threat to personal health or safety or another hazardous condition or circumstance on the property is discovered.
(c)An extraordinary expense necessary to repair or maintain the common interest development or any part of it for which the association is responsible that could not have been reasonably foreseen by the board in preparing and distributing the annual budget report under Section 5300. However, before the imposition or collection of an assessment under this subdivision, the board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process, and the resolution shall be distributed to the members with the notice of assessment.

What this section used to say

Read by comparing the Legislative Counsel's biennial publications of the code, one per session. The earliest is the 2013–2014 publication, which already carries the Act in its present numbering, so changes are recorded from the publication after it onward. This matters beyond the record: § 5145 gives a member one year to challenge an election, and the text that governs is the text in force on the day it was held, not today's.

  1. SB 900in force 2025-01-01

    Amended by Stats. 2024, Ch. 288, Sec. 3. (SB 900) Effective January 1, 2025.

    2 subdivisions changed

    See what changed
    1. (b)An extraordinary expense necessary to repair operate, repair, or maintain the common interest development or … is responsible where a threat to personal health or safety or another hazardous condition or circumstance on the property is discovered.
    2. (c)… annual budget report under Section 5300. However, prior to before the imposition or collection of an assessment …

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5610.json — the same text with its subdivision anchors, dates and sources.

Civil Code § 5615 — the text

Notice of an Increase — 30 to 60 Days Before It Is Due
Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.

The association shall provide individual notice pursuant to Section 4040 to the members of any increase in the regular or special assessments of the association, not less than 30 nor more than 60 days prior to the increased assessment becoming due.

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5615.json — the same text with its subdivision anchors, dates and sources.

Civil Code § 5620 — the text

Regular Assessments Are Exempt From Execution
Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.

(a)Regular assessments imposed or collected to perform the obligations of an association under the governing documents or this act shall be exempt from execution by a judgment creditor of the association only to the extent necessary for the association to perform essential services, such as paying for utilities and insurance. In determining the appropriateness of an exemption, a court shall ensure that only essential services are protected under this subdivision.
(b)This exemption shall not apply to any consensual pledges, liens, or encumbrances that have been approved by a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election, or to any state tax lien, or to any lien for labor or materials supplied to the common area.

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5620.json — the same text with its subdivision anchors, dates and sources.

Civil Code § 5625 — the text

No Assessment on the Taxable Value of a Separate Interest
Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.

(a)Except as provided in subdivision (b), notwithstanding any provision of this act or the governing documents to the contrary, an association shall not levy assessments on separate interests within the common interest development based on the taxable value of the separate interests unless the association, on or before December 31, 2009, in accordance with its governing documents, levied assessments on those separate interests based on their taxable value, as determined by the tax assessor of the county in which the separate interests are located.
(b)An association that is responsible for paying taxes on the separate interests within the common interest development may levy that portion of assessments on separate interests that is related to the payment of taxes based on the taxable value of the separate interest, as determined by the tax assessor.

Reproduced verbatim from the California Legislative Counsel's published text and verified word-for-word against a second source (leginfo (Legislative Counsel official bulk code database, LAW_SECTION_TBL) · California Public Law (Public.Law)). California statutes are government edicts and carry no copyright. This is an unofficial reproduction — the official version is published by the Legislative Counsel at leginfo.legislature.ca.gov, and that version governs.
Machine-readable: /data/5625.json — the same text with its subdivision anchors, dates and sources.

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