Homeowners associations (HOAs) play a vital role in managing and maintaining communities, helping maintain common areas and implement community guidelines. However, managing HOA fee collection and enforcement can become a complex issue when homeowners fail to pay their dues.
In California, HOA assessment collection is governed by detailed statutes that set out procedures for both homeowners and boards of directors.
Whether you're a homeowner facing delinquent assessments or a board member navigating HOA collection and foreclosure rules, understanding the general legal framework is important. Below is an overview of HOA fee collection and enforcement in California.

Understanding HOA Fee Collection in California

HOA fees are essential for the operation and upkeep of common areas in shared communities. These fees are typically assessed regularly to cover maintenance costs, insurance, and other shared expenses. When a homeowner fails to pay these fees, the HOA may have legal options to pursue the amounts owed.
In California, the Davis-Stirling Common Interest Development Act (Civil Code § 4000 et seq.) governs the collection of HOA assessments. Homeowners who fall behind on payments may face consequences such as late charges, interest, collection costs (as permitted by statute), and potentially an assessment lien and foreclosure in some circumstances. If you’re dealing with delinquent HOA fees, it can be helpful to understand the applicable procedures and timelines.

California HOA Delinquent Assessments and Collection Policies

When a homeowner becomes delinquent in paying HOA fees, the collection policy of the HOA will often describe the general steps the association intends to follow, consistent with California law. Typically, before an assessment lien is recorded, the association must send a written pre-lien notice that includes specific disclosures and information required by California Civil Code § 5660.
If the fees remain unpaid, the HOA may initiate further collection actions, including recording an assessment lien on the property. California law outlines statutory requirements for assessment liens and for judicial and nonjudicial foreclosure, including prerequisites and limitations on when foreclosure may be used.
The HOA’s collection policy should outline the process for dealing with delinquent assessments, including information about payment plans. Under California law, an association must offer an owner the opportunity to enter into a payment plan for delinquent assessments, provided the owner submits a written request that meets the statutory requirements. (See, e.g., Civil Code § 5665.)

The HOA Lien Process in California

Once a homeowner becomes delinquent on assessments, the HOA may record an assessment lien. This lien is a legal claim against the homeowner's property for certain amounts owed, subject to statutory requirements and limitations.
The HOA must record a Notice of Delinquent Assessment with the county recorder's office, and the content and timing of the lien are governed by California Civil Code § 5675 and related provisions. Recording the lien generally provides notice that the association is claiming a debt secured by the property.
If the homeowner does not pay the overdue amounts, the HOA may be able to proceed with foreclosure, but only if statutory prerequisites are satisfied, including minimum delinquency thresholds and board approval requirements.

HOA Foreclosure Rules in California

Under California law, an HOA may be able to foreclose on a property to collect delinquent assessments, but foreclosure is not an immediate or automatic process. Among other requirements, California law limits when an association may use foreclosure for delinquent assessments (including minimum delinquency thresholds). (See Civil Code § 5720.)
HOAs can choose between judicial and nonjudicial foreclosures when foreclosure is permitted. A judicial foreclosure involves a court proceeding, where the HOA files a lawsuit and seeks a judgment.
In contrast, nonjudicial foreclosure is often used for assessment lien enforcement when the statutory requirements are met. Nonjudicial foreclosure generally follows California’s trustee sale procedures (including Civil Code § 2924 et seq.), along with the additional requirements in the Davis-Stirling Act.

Homeowners’ Rights and Protections

While HOAs have authority to collect delinquent assessments, homeowners in California also have protections. Depending on the circumstances and the parties involved, debt collection laws such as the Rosenthal Fair Debt Collection Practices Act (and, in some situations, the federal Fair Debt Collection Practices Act) may apply to third-party debt collectors or others involved in collection activity. These laws restrict certain abusive, unfair, or misleading collection practices.
Homeowners may also have rights to review certain association records, and to dispute charges through available association procedures.
In addition, the Davis-Stirling Act provides for internal dispute resolution (IDR) and alternative dispute resolution (ADR), such as mediation, in certain contexts. (See, e.g., Civil Code §§ 5900–5920, 5925–5965.)

What to Do If You’re Facing Delinquent HOA Fees

If you find yourself in a situation where you're facing delinquent assessments and potential foreclosure, it may help to act promptly. Here are a few general steps to consider:
Review the HOA’s Collection Policy: Understand the rules and timeline for fee collection and what options you have for payment plans or dispute resolution.

Additional Information

For additional general information about resolving HOA disputes in California, you can review: resolving your HOA fee issues and avoiding foreclosure.