California HOA Legislation 2025–2026: What to Know

Overview

California's 2025 legislative session was one of the most active in years for HOA law. Several bills targeted the Davis-Stirling Common Interest Development Act directly — addressing disclosure requirements, EV charging, and disaster rebuilding. Several passed, and the sections below cover the ones that became law.

This guide summarizes every significant 2025 bill affecting California HOAs, what it means for your board, and how to prepare. This is not legal advice — consult qualified HOA counsel for guidance specific to your community.

SB-410: SB-326 Balcony Inspection Reports Must Be Disclosed to Buyers

**What it proposed:** SB-410 (Grayson) requires HOAs to provide potential buyers with the exterior elevated element inspection reports required under Civil Code §5551 (SB-326). This closes a significant gap: SB-326 mandated inspections, but did not previously require that the resulting reports be included in the disclosure package provided to prospective purchasers.

**What happened:** The bill passed out of the Senate 34–0.

**What this means:** If your Bay Area condo or townhome association has completed its SB-326 inspection (as required by the January 2025 deadline for most associations), you will be required to provide the report to prospective buyers as part of the standard disclosure package. If you have not yet completed your SB-326 inspection, this becomes doubly urgent — you face both the compliance deadline and the inability to make legally complete disclosures in sales transactions.

**What boards should do now:** Confirm your SB-326 inspection has been completed and the report is in your association's records. Work with your management company to ensure the report will be included in future disclosure packages. If your inspection revealed deficiencies requiring repair, document the remediation plan and status — buyers will have this information.

SB-770: EV Charging Station Insurance Requirement Changed

**What it passed:** SB-770 (Allen) deletes the prior requirement that an EV charging station owner in a common area or exclusive use common area provide a certificate of insurance naming the association as an additional insured. The previous requirement had created friction in EV charging station approvals.

**What this means:** EV charging station requests in California HOAs are now easier to approve from an insurance standpoint. Boards that previously denied or delayed EV charging applications based on insurance certificate requirements should revisit their policies. The association can still require appropriate installation standards and liability allocation.

SB-625: HOA Obligations in Disaster Reconstruction

**What it passed:** SB-625 (Wahab/Richardson) creates a streamlined ministerial approval process for rebuilding residential structures damaged in a disaster, establishes timelines for HOA review of development proposals, limits HOA covenant restrictions that would prevent reconstruction of disaster-damaged structures, and allows mobile home habitation on property for up to three years following a declared disaster.

**What this means for Bay Area HOAs:** Following the significant wildfire activity in California, this bill directly addresses HOA obligations in disaster reconstruction. Bay Area associations — particularly those in fire-adjacent areas — should review their architectural and design review procedures to ensure they can process disaster reconstruction proposals within the required timelines and do not have CC&R provisions that could be found to unreasonably restrict reconstruction.

Corporate Transparency Act: HOAs Now Exempt

**The background:** The Corporate Transparency Act (CTA) had created significant uncertainty and compliance burden for HOAs since 2024, with conflicting court rulings and regulatory guidance.

**The resolution:** On March 21, 2025, FinCEN issued an interim final rule removing the beneficial ownership information reporting requirement for U.S. companies and U.S. persons. Domestic HOAs (including California community associations) are now fully exempt from CTA reporting requirements. The focus has shifted entirely to foreign reporting companies.

**What boards should do:** No CTA filings are required for your California HOA. If your association began a CTA compliance process, you may discontinue it. Work with your association's counsel if you have questions about prior filings.

FAIR Plan Insurance: What Bay Area HOAs Need to Know

Several 2025 bills addressed the California FAIR Plan insurance crisis:

**AB-1:** Requires the Department of Insurance to periodically update regulations on building hardening measures and wildfire mitigation — passed the Assembly 79–0. This signals continued regulatory pressure on HOAs in wildfire-adjacent areas to implement hardening measures.

**AB-226:** Authorizes FAIR Plan to issue bonds to increase claims-paying capacity — passed the Assembly 77–0. This provides some stability to the FAIR Plan, which is the insurer of last resort for many California HOAs that have lost standard market coverage.

**What Bay Area HOAs with FAIR Plan coverage should do:** FAIR Plan policies should be treated as temporary, last-resort coverage — not a permanent insurance solution. Work with a broker experienced in HOA insurance to develop a path back to the voluntary market. Boards should document wildfire mitigation efforts (defensible space, ember-resistant vents, Class A roofing) as these factors influence underwriting in the voluntary market.

"Missing Middle" and "Gentle Density" Housing: Emerging HOA Issues

Two overlapping housing policy concepts are reshaping California's approach to residential development — and will increasingly affect HOA communities:

**Missing middle housing** refers to medium-density housing types (ADUs, condos, duplexes, fourplexes) positioned between single-family homes and mid-rise construction. California policy increasingly supports missing middle housing to address the housing shortage.

**Gentle density** encompasses ADUs, duplexes, fourplexes, townhomes, and other moderately dense developments that predate modern zoning restrictions.

**For HOA boards:** Expect continued legislative pressure to void HOA CC&R restrictions that prohibit or impede ADU construction, lot splits, and other gentle density housing types. SB-677 (Wiener/Wicks) — which would have required local agencies to ministerially approve certain housing developments and urban lot splits and voided HOA private restrictions that effectively prohibit them — did not make it out of committee in 2025 but reflects where California housing policy is headed.

Review your governing documents for restrictions that prohibit ADUs, lot splits, or housing conversions. These provisions may increasingly be at risk of being voided by future legislation.

What California HOA Boards Should Do Before January 2026

1. **Complete SB-326 inspection immediately** if not done — the deadline has passed and SB-410 now requires disclosure to buyers

2. **Review your fine schedule** against the $100 cap in AB 130 (see our California fine-cap guide)

3. **Update EV charging policies** to reflect SB-770's removal of the insurance certificate requirement

4. **Review disaster reconstruction provisions** in your CC&Rs in light of SB-625

5. **Discontinue any CTA compliance efforts** — domestic HOAs are fully exempt

6. **Audit wildfire insurance** — FAIR Plan coverage should be a temporary bridge, not a permanent solution

Association Property Managers serves HOA and condo communities throughout the Bay Area and Michigan, and we stay current on every relevant California legislative development so your board doesn't have to. Contact us for a free proposal and compliance consultation.

How APM Keeps Your Board Ahead of California Legislative Changes

APM Management reviews every California legislative session for bills affecting HOA governance and proactively updates our management procedures and client communications. When new California requirements take effect, APM clients do not scramble to catch up — the updates are already built into our operating procedures.

Our HOA Alchemy platform's unified messaging system creates a documented record of board communications. And our annual disclosure preparation process ensures every required document — including updated EV policy language reflecting SB-770 — is included in the Annual Budget Report package delivered on schedule.

Stay Compliant With APM

APM serves HOA and condo communities throughout the Bay Area — Pleasanton, Dublin, San Ramon, Fremont, and Newark — and in Lansing, Michigan. Contact us at billing@apmhoa.com or visit apmhoa.com for a free legislative compliance review and proposal.