When you buy a home in a community governed by a homeowners association (HOA), you agree to pay regular dues that support shared services, amenities, and long-term maintenance. However, when an HOA imposes an unexpected special assessment—especially a substantial one—it can catch homeowners off guard and lead to significant financial strain.
In California, the law places limits on how and when HOAs can issue special assessments, and it gives homeowners certain rights related to notice, voting, and access to association records. Understanding these rules can be helpful for anyone who wants to challenge an HOA special assessment or evaluate whether their board is following required procedures.
This article provides general information about special assessments under California’s Davis-Stirling Common Interest Development Act and related laws. It is not legal advice.

What Is a Special Assessment?

A special assessment is an extra charge that an HOA levies on its members in addition to regular assessments. Special assessments may be used to address unplanned expenses like storm damage, emergency repairs, or major repairs or replacements that are not fully funded through the regular budget.
There are different types of assessments depending on the need:
Emergency Assessments: Issued for certain urgent expenses that may qualify as “emergency assessments” under California law.
Capital Improvement Assessments: Used to pay for upgrades such as elevator replacements, structural repairs, or other projects.
Reimbursement Assessments: In some circumstances, an association may levy a reimbursement assessment against an owner for costs tied to damage, repair obligations, or other matters, as permitted by the governing documents and applicable law.
The Davis-Stirling Act governs HOA assessments in California, including special assessments, and sets requirements for how and when they can be imposed.

California HOA Special Assessment Cap

Under California law, HOAs generally can’t impose unlimited special assessments without member approval. Civil Code §5605(b) limits special assessments to no more than 5% of the association’s budgeted gross expenses for that fiscal year, unless approved by the membership as required by statute.
This is often referred to as the California HOA special assessment cap, and it is intended to limit larger unapproved assessments. If an association attempts to exceed this limit without the required approval, affected members may have options to raise the issue with the board and, in some situations, challenge the assessment.

Special Assessment Notice Requirements

Homeowners generally have a right to notice when a special assessment is levied. Under the Davis-Stirling Act, associations must provide written notice of an increase in a regular or special assessment not less than 30 days and not more than 60 days before the due date for the increased assessment.
This notice generally includes:
The amount of the assessment
The reason for the assessment
The due date(s)
If an association levies a special assessment without providing the notice required by law, members may request that the board correct the process and provide appropriate information.

The HOA Assessment Approval Process

Not all special assessments require a membership vote, but some do. Here's how it generally works in California:
If the total special assessment exceeds 5% of the current year's budgeted gross expenses, approval by the membership is generally required under Civil Code §5605(b) (typically by a majority of a quorum of members, as provided by the statute).
For emergency assessments, a membership vote is not required if the assessment meets the statutory requirements for an emergency assessment.
Still, even in urgent cases, the board must follow the procedures required by law. Emergency assessment authority is limited, and whether an expense qualifies can depend on the facts and the association’s documentation.

Fighting Improper HOA Assessments

If you believe your HOA is levying an improper or excessive assessment, there are several steps homeowners commonly consider:

1. Request Financial Documents

Start by requesting copies of relevant association records, such as financial statements, reserve funding information, meeting minutes, and bids or contracts. Many of these are “association records” that members generally have the right to inspect and copy under California law (subject to statutory exceptions and reasonable procedures).

2. Challenge the Assessment Formally

You can submit a written request to the board asking for clarification and supporting documentation. Depending on the dispute, some owners also consider using the association’s internal dispute resolution (IDR) procedures, if available.

3. Call for a Community Vote

If the assessment is one that requires member approval, members may be able to ask the association to follow the voting procedures required by statute and the governing documents. The process for member meetings and votes can vary based on the association’s governing documents and corporate status.

4. File a Legal Challenge

In some situations, homeowners may pursue legal proceedings related to allegedly unlawful assessments. Assessment disputes may also arise in the context of collection efforts.
A California attorney familiar with common interest developments can help evaluate how the Davis-Stirling Act and the governing documents apply to a particular set of facts.

When Emergency Assessments Go Too Far

Emergency assessments have become more common in the wake of natural disasters, aging infrastructure, and underfunded reserve accounts. However, disagreements sometimes arise about whether a particular expense qualifies as an “emergency assessment” under California law.
Generally, emergency assessments are permitted only in limited circumstances set by statute, which may include certain court-ordered expenses, expenses needed to address an immediate threat to personal safety or to prevent substantial property damage, or certain necessary repair or maintenance expenses that could not have been reasonably foreseen and are not otherwise funded.
Whether an emergency assessment is proper can depend on details such as insurance coverage, available funds, and the board’s findings and documentation.

Protecting Yourself from Financial Hardship

If you’re facing a steep special assessment that you can’t afford, some associations may offer payment arrangements, depending on the governing documents and board policy. California law also requires associations to offer certain payment plan options for qualifying delinquent assessments.
Keep in mind that failing to pay assessments can lead to late charges and collection actions. In some circumstances, unpaid assessments may result in a lien, and nonjudicial foreclosure may be available only if statutory requirements and thresholds are met.

Work with an Attorney to Challenge HOA Special Assessments

Special assessments can involve detailed statutory requirements, governing documents, and factual questions (such as budgeting, reserve funding, and whether an expense is an “emergency”). Some homeowners choose to consult an attorney to better understand how these rules may apply to their situation and what dispute-resolution options may be available.

Protect Your Property and Finances — Practical Next Steps

If you believe your HOA has exceeded its authority or did not follow required procedures for a special assessment, common next steps may include reviewing the notice you received, requesting relevant association records, and checking the association’s governing documents and the Davis-Stirling Act provisions that apply to assessments.