HOA Law Update 2024–2025: What California Boards Need to Know
If you're on an HOA board in California, a few key legal changes are coming your way, and yes, they matter.
So, what changed?
First, the federal government now wants certain HOAs to report board member details under the Corporate Transparency Act. If you're incorporated, check if you're a "reporting company." The deadline is March 2025, and skipping it comes with penalties.
We’ve all been waiting for this one.
HOAs can finally offer electronic voting starting January 2025, as long as homeowners opt in and paper ballots are still available. Just remember to give members a 90-day heads-up before the election. HOA Simplified works with secure digital voting tools, if you're unsure where to start.
Another win for small communities: if your first election fails to meet quorum, the second round can now proceed with just 20% participation. Check your bylaws and update your notices accordingly.
Seen below is a Step-by-Step guide to running your own election:
There's also a big shift in maintenance responsibilities. If a utility line begins in the common area, even if it only serves one unit, the HOA now owns the repair. Boards may need to revisit reserve planning to cover this kind of expense.
Now, affordable housing HOAs get a dues cap.
If you have 20 or fewer deed-restricted units, you can’t raise assessments more than 5% plus CPI each year. Make sure this is disclosed to buyers and reflected in your budgets.
By January 2025, HOAs with three or more units and elevated wooden decks must complete a safety inspection by a licensed professional. Don’t delay, these inspections can take time to schedule. HOA Simplified can refer trusted vendors if needed.
One more update and this one’s huge.
Meetings can now finally be fully virtual! Just include Zoom or dial-in info in the notice. It’s a great option for remote or seasonal boards.
And finally, HOAs can now file small claims for up to $6,250. That makes it easier to resolve unpaid dues or minor disputes without jumping into full legal battles.
If this feels like a lot, you're not alone. HOA Simplified helps small boards stay ahead of legal changes, manage compliance, and keep budgets on track, all without full-service fees.
Want help adjusting your policies? We’re here for that too.
Key Definitions That Might Help:
Reporting Company: A legal entity that must file ownership and officer information under the Corporate Transparency Act unless exempt. Most incorporated HOAs fall into this category.
Quorum: The minimum number of homeowners who must participate in a vote or meeting for it to be legally valid.
Special Assessment: An extra fee charged to homeowners when regular dues or reserves aren’t enough to cover a major expense.
Common Area: Shared parts of a property managed by the HOA, such as landscaping, hallways, structural utilities, or recreational spaces.
Deed-Restricted Affordable Units: Homes with recorded restrictions that limit resale prices or require affordability compliance, often in exchange for development incentives.
Virtual Meeting: An HOA board or membership meeting conducted entirely online, permitted under California law as long as proper notice and access are provided.
Pre-Election Notice: A required communication sent to homeowners outlining the election process, candidate eligibility, and voting procedures—usually sent 30–90 days before ballots go out.
