Understanding California's Davis-Stirling Act: A Complete Guide

If you serve on an HOA board in California—or you're a homeowner trying to understand your rights—you've probably heard of the Davis-Stirling Act. Maybe you've even tried to read it. All 150+ sections of it.

Here's the thing: California has some of the strictest (and most homeowner-protective) HOA laws in the country. That's actually good news—but only if you understand what it means for your community.

This guide breaks down everything you need to know about the Davis-Stirling Act in plain English, including the major 2025 updates that affect how your HOA operates.

What Is the Davis-Stirling Act?

The Davis-Stirling Common Interest Development Act is California's comprehensive framework for governing homeowners associations, condominiums, and other common interest developments (CIDs). Think of it as the rulebook that every California HOA must follow—regardless of what your CC&Rs say.

This is important: The Davis-Stirling Act is state law. That means it supersedes any HOA policy or governing document that conflicts with it. If your CC&Rs were written in 1995 and say you can fine homeowners $500 for parking violations, that's no longer enforceable—state law now caps most fines at $100.

Assessments & Finances

Money matters. It's often where HOA disputes start. The Davis-Stirling Act puts strict limits on what boards can do with assessments.

Foreclosure Protections

Here's where California really protects homeowners. An HOA cannot foreclose on your home for unpaid assessments unless:

• The debt exceeds $1,800 (not including late fees or interest), OR
• The debt is more than 12 months overdue

Even then, the board must vote to record a lien in an open meeting, and you have 90 days after any foreclosure sale to redeem your property.

Elections & Voting

California takes HOA elections seriously. The rules are designed to ensure fair, transparent elections—and they've gotten even more flexible with recent updates.

2025 Update: Electronic Voting (AB 2159)

Good news for associations struggling with participation: you can now offer electronic voting. But there's a catch—members must be able to opt out and receive a paper ballot instead. Your election rules need to clearly explain this option.

2025 Update: Reduced Quorum (AB 1458)

Can't get enough people to vote? If your election doesn't reach quorum, you can now adjourn to a later date where the quorum requirement drops to just 20%. This is a game-changer for associations that have struggled with voter apathy.

Enforcement & Fines

This is where the 2025 updates made the biggest splash. AB 130, effective June 30, 2025, fundamentally changed how California HOAs can enforce rules.

Due Process Requirements

Before your board can impose any fine, you must:

1. Provide the homeowner with at least 10 days notice
2. Hold a hearing where they can present their side
3. Issue a written decision within 14 days of the hearing

Skip any of these steps, and your fine won't hold up if challenged.

Reserves & Maintenance

Deferred maintenance is how communities get into trouble. California law requires proactive planning.

Reserve Studies

Every California HOA must conduct a visual reserve study at least every 3 years, with annual financial updates. This isn't optional—it's how you plan for roof replacements, repaving, and other major expenses without hitting homeowners with surprise special assessments.

The "Balcony Bill" (SB 326)

If your condominium has 3 or more units, you're required to have exterior elevated elements—balconies, decks, walkways—inspected by a licensed architect or structural engineer every 9 years.

The first deadline was January 1, 2025. If your association missed it, schedule an inspection immediately and document your efforts. This law came out of the Surfside condo collapse tragedy and inspectors are taking it seriously.

Rental Restrictions

California limits how much HOAs can restrict rentals—a big deal for homeowners who rely on rental income.

• No total rental bans: You cannot prohibit rentals entirely
• 25% minimum: Rental caps cannot be lower than 25% of units
• 30-day minimum lease: You can require leases of at least 30 days, but not longer

Also note: governing documents cannot unreasonably restrict Accessory Dwelling Units (ADUs). California is serious about housing supply, and HOAs can't stand in the way.

Meetings & Transparency

Board meetings must be open to all members (with limited exceptions for executive sessions). Here's what you need to know:

• 4-day notice: Meeting agendas must be posted at least 4 days in advance
• Virtual meetings: Now permitted without a physical location under certain conditions (AB 648)
• Member participation: Homeowners have the right to speak at open meetings

Solar Energy Rights

California law strongly protects homeowners who want to install solar panels. Your HOA cannot:

• Prohibit solar energy systems
• Impose restrictions that significantly increase costs (more than $1,000)
• Impose restrictions that decrease system efficiency by more than 10%

Reasonable aesthetic guidelines are allowed, but they can't effectively block solar installation.

What You Need to Do

If you're on a California HOA board, here's your compliance checklist:

The Bottom Line

The Davis-Stirling Act might be 150+ sections of legal code, but its purpose is straightforward: protect homeowners while giving boards the tools they need to maintain healthy communities.

The 2025 updates—particularly AB 130's fine caps—represent a significant shift toward homeowner-friendly enforcement. Boards that get ahead of these changes will avoid disputes and build trust with their communities.

Not sure if your documents are compliant? Outdated CC&Rs and policies are the #1 source of HOA legal trouble in California.