Davis-Stirling Act 2026: Key Updates Every California HOA Board Must Know

Overview

The Davis-Stirling Common Interest Development Act — California's primary statute governing homeowners associations and condominium associations — continues to evolve. California's legislature has remained active in HOA regulation, and 2026 brings continued refinements to assessment collection, election administration, owner disclosure rights, and board governance requirements.

This guide summarizes the key provisions California HOA boards need to understand in 2026, with practical guidance on compliance. This is not legal advice — consult qualified HOA counsel for guidance specific to your community's situation.

Assessment Collection: What Changed and What Stayed

Assessment collection under Davis-Stirling remains one of the most technically precise areas of California HOA law. Associations that fail to follow the required procedures lose enforcement rights and expose themselves to significant legal risk.

**The delinquency notice sequence** requires that before an association can record a lien on a delinquent owner's property, it must:

1. Provide written pre-lien notice (the "30-day notice") specifying the amount owed, payment options, the right to request an installment payment plan, and the right to request internal dispute resolution (IDR)

2. Wait at least 30 days after the pre-lien notice is sent

3. Adopt a resolution in an open board meeting authorizing lien recordation

4. Provide a second notice to the owner at least 10 days before recording the lien

5. Record the lien

**Installment payment plans.** California law requires associations to offer owners a payment plan for delinquent assessments upon request. The payment plan must extend at least 3 months, and the association must provide written notice of the right to request a payment plan in the pre-lien notice. Associations that fail to offer payment plans when requested face penalties and potentially lose their lien rights.

**IDR and ADR.** Davis-Stirling requires associations to offer internal dispute resolution (IDR) and provide information about alternative dispute resolution (ADR) options before pursuing legal action against an owner. The specific IDR and ADR requirements interact with the delinquency process and can affect litigation timelines.

**Enforcement costs.** Reasonable collection costs (attorney fees for lien work) can be added to the delinquent balance, but only if the association's collection policy (required to be adopted and distributed annually) authorizes it. Review your collection policy annually.

Board Elections: Procedures and Common Failures

Board elections under Davis-Stirling are governed by California Corporations Code and the Civil Code, and the California Department of Real Estate (DRE) has been increasingly active in enforcing election requirements. The most common election compliance failures:

**Failure to use independent third-party inspectors of election.** Davis-Stirling requires that elections (other than elections by acclamation when the number of candidates equals the number of open seats) be conducted by independent third-party inspectors. Using board members, management staff, or community volunteers who are not genuinely independent inspectors violates the statute.

**Deficient election rules.** Every association is required to adopt election rules that comply with Davis-Stirling. Election rules must cover candidate qualifications, the nomination process, the voting period, methods for casting ballots, the inspector's role, and ballot handling procedures. Many associations adopted election rules years ago that have not been updated to reflect statutory changes.

**Failure to use secret ballots.** Davis-Stirling requires secret balloting for elections of directors and votes on assessment increases above certain thresholds. The outer envelope must have the voter's name and signature but be separated from the inner envelope containing the secret ballot before counting.

**Nomination procedure failures.** Proper notice of the nomination deadline, candidate submission procedures, and the information provided to candidates before the election must comply with the association's election rules and the statute.

**Retention and inspection.** Ballots, outer envelopes, and all election materials must be retained for at least one year following the election and made available for inspection by members on request.

Owner Inspection Rights

California HOA members have broad rights to inspect association records under Civil Code Section 5200 et seq. The statute specifies:

**Records that must be made available.** Financial documents (statements, general ledger, check register, bank reconciliations, reserve study, annual budget), board meeting minutes (except executive session minutes), membership lists (subject to opt-out), executed contracts, current governing documents, and insurance documents must be made available to members for inspection and copying.

**Response time.** The association must respond to a member inspection request within 10 business days of receiving a written request. The inspection must be made available within the time period specified by statute (typically within 30 days of the written request).

**Penalties for non-compliance.** An association that fails to comply with a proper inspection request may be liable to the member for a statutory penalty up to $500, plus actual damages and court costs if the member is required to file an action to enforce inspection rights.

**What can be withheld.** Executive session minutes, attorney-client privileged communications, and certain personnel records are not subject to member inspection. The association has no obligation to create records it does not already maintain.

Reserve Study Requirements

**California's reserve funding requirements** are among the most stringent in the country. Key 2026 provisions:

**Annual reserve disclosure.** Every year, the association must provide members with a Reserve Funding Disclosure that includes: current reserve balance, the estimated cost of major components, the current funding plan, and an assessment of whether reserves are adequate. This must be delivered to members within 30 days of the end of the fiscal year as part of the Annual Budget Report.

**Reserve study update frequency.** A full reserve study (including a site inspection) is required at least every three years. An update (without full site inspection) is permitted in intervening years. Boards that skip reserve study updates are non-compliant.

**Reserve account restrictions.** Reserve funds may only be disbursed for reserve purposes — major component repair and replacement. Using reserve funds for operating expenses requires a formal board resolution and a repayment plan. Improper reserve fund use is a significant liability issue.

Board Meeting Requirements

**Open meeting requirements.** Board meetings must generally be open to all members, with proper advance notice (at least 4 days for regular meetings). Members must be afforded an opportunity to speak on any item within the board's authority before the board takes action on that item.

**Executive sessions.** Boards may meet in closed executive session to discuss litigation, member discipline, personnel, and certain contract negotiations. Actions taken in executive session must be reported in the minutes of the next open board meeting.

**Meeting minutes.** Minutes of board meetings must be available to members within 30 days of the meeting. Executive session minutes are maintained separately and are not subject to member inspection.

**Emergency meetings.** Emergency meetings may be called with less than 4 days notice when prompt action is required to protect the community. Emergency meetings must be preceded by the best available notice and ratified at the next regular meeting.

Common Compliance Failures in California HOAs

Based on common patterns seen in California community associations, the most frequent compliance failures are:

1. Delinquency collection procedures that skip required steps or fail to offer payment plans

2. Elections conducted without compliant inspectors or proper ballot procedures

3. Annual budget report/reserve disclosure packages that are missing required elements

4. Governing documents that have not been updated to reflect statutory changes

5. Board meeting procedures that don't provide adequate member comment opportunity

6. Failure to respond timely to member inspection requests

Each of these failures carries real legal risk, including liability for the association and potentially for individual board members.

APM's Davis-Stirling Compliance Expertise

California HOA management requires genuine expertise in Davis-Stirling Act compliance — it is not optional, and the compliance burden is real. APM Management's California management teams specialize in Davis-Stirling compliance, including:

• Assessment collection procedures that comply with Civil Code Section 5600 et seq.
• Election administration by independent inspectors with compliant procedures
• Annual budget report and reserve disclosure packages that meet all statutory requirements
• Member inspection request management within statutory timeframes
• Board meeting procedures that comply with open meeting requirements

[Learn more about APM's California HOA management services](/who-we-serve/california).

Frequently Asked Questions

Does Davis-Stirling apply to all homeowners associations in California?

Davis-Stirling applies to all common interest developments (CIDs) in California, including planned developments (HOAs), condominiums, stock cooperatives, and community apartment projects. Nearly all residential HOAs and condo associations in California are governed by Davis-Stirling.

What happens if our HOA violates Davis-Stirling?

Violations can result in: loss of lien rights for assessment collection, invalid elections (requiring re-election), statutory penalties to aggrieved members, and liability in civil litigation. Persistent non-compliance can also result in complaints to the California Attorney General's office or the Department of Real Estate.

Do we need an HOA attorney to ensure Davis-Stirling compliance?

A qualified HOA management company with California expertise handles most day-to-day compliance requirements. An HOA attorney is important for significant matters: reviewing governing document amendments, advising on litigation, and navigating complex collection or election disputes. Most California HOA boards maintain a relationship with HOA-specialized legal counsel for periodic review and specific matters.

How often does Davis-Stirling change?

The California legislature amends Davis-Stirling virtually every session. Annual review of statutory updates — through your management company, your HOA attorney, or industry association resources like the California Association of Community Managers (CACM) — is essential to staying current.