# California HOA Special Assessments: The 5 Percent Rule (2026) > Under California Civil Code 5605, an HOA board can impose special assessments that add up to 5 percent of the association's budgeted gross expenses for the year, and can raise regular assessments up to 20 percent, without a vote of the members. Anything above those limits needs the approval of a majority of a quorum of owners. Narrow emergency assessments under Civil Code 5610 are an exception. The section was last amended by AB 572, effective January 1, 2024. Before you buy, read the budget, the reserve study, and the board minutes in the disclosure packet for any approved or looming special assessment, because that cost transfers to you at closing. _Source: https://hoanotes.com/hoa/california/special-assessments/ | Last reviewed 2026-05-31_ ## The 5 percent rule, explained California caps what an HOA board can charge owners without putting it to a vote. Under Civil Code 5605, the board may levy special assessments that add up to no more than 5 percent of the association's budgeted gross expenses for the fiscal year, and may raise the regular assessment by no more than 20 percent over the prior year. To go above either limit, the board has to get the approval of a majority of a quorum of the members. The 5 percent is an aggregate for the year, not a per-assessment cap. An association with a 1,000,000 dollar annual budget can levy up to 50,000 dollars in total special assessments in a year on the board's own authority; beyond that, it goes to a vote of the owners. There is a narrow exception. Emergency assessments under Civil Code 5610, for an extraordinary expense the board could not have reasonably foreseen, such as a court order or a sudden threat to safety, are not subject to the 5 percent limit. ## What to check in the disclosure packet Special assessments are the most expensive surprise in an HOA purchase. Read these together: - The reserve study, for how well the association has funded its long-term repairs. A reserve funded at a fraction of its target is the classic setup for a special assessment. - The budget and financial statements, for the size of the operating budget, which sets the 5 percent ceiling, and for any operating deficit. - Recent board meeting minutes, for any special assessment that has been discussed, approved, or put to a vote. An approved but not yet billed assessment is a cost you inherit. - Any member vote in progress on an assessment above the 5 percent or 20 percent limit. ## Why this matters to your offer A special assessment does not care who owned the home when the roof failed; it follows the property. Buy into an association with an underfunded reserve and a major repair due, and the bill can land on you within months of closing. The 5 percent rule limits how fast it can arrive without a vote, but it does not prevent the assessment, and a large project goes to the owners for approval anyway. The signals are all in the disclosure packet, spread across the reserve study, the budget, and the minutes. An HOA Notes brief reads all three together, scores the special-assessment risk, and points to the page behind every finding. ## What the statute says **Civil Code section 5605** (Regular assessment increase limit). The board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the association's preceding fiscal year without the approval of owners constituting a quorum casting a majority of votes at a duly called meeting. The board may increase regular assessments up to 20 percent per year without member approval and may impose a special assessment up to 5 percent of budgeted gross expenses without member approval (Civil Code section 5605). ## California HOA special assessments: common questions ### How much can a California HOA charge in a special assessment without a vote? Under Civil Code 5605, an HOA board can levy special assessments that total up to 5 percent of the association's budgeted gross expenses for the year without a member vote. Above 5 percent in aggregate, the board needs the approval of a majority of a quorum of the members. ### Can my HOA raise my dues without asking the owners? A California HOA board can raise the regular assessment by up to 20 percent over the prior year without a member vote, under Civil Code 5605. A larger increase requires the approval of a majority of a quorum of members. ### Are emergency assessments subject to the 5 percent limit? No. Emergency assessments under Civil Code 5610, for an extraordinary expense the board could not have reasonably foreseen, such as a court order or a sudden threat to safety, are an exception to the 5 percent special-assessment limit. ### How do I find out if a special assessment is coming before I buy? Read the reserve study, the budget, and recent board minutes in the disclosure packet. An underfunded reserve plus a major repair due, or an assessment already discussed in the minutes, is the warning sign. An HOA Notes brief reads these together and scores the risk. ## Sources (verified 2026-05-31) 1. California Civil Code section 5605 (assessment increases; requirements and limitations), California Legislative Information. Verified 2026-05-31. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=5605.&lawCode=CIV 2. Civil Code Section 5605: assessment increases, requirements and limitations, FindHOALaw. Verified 2026-05-31. https://findhoalaw.com/civil-code-section-5605-assessment-increases-requirements-and-limitations/ 3. California Civil Code section 5605, Justia California Codes. Verified 2026-05-31. https://law.justia.com/codes/california/code-civ/division-4/part-5/chapter-8/article-1/section-5605/ HOA Notes is not a law firm and this is not legal advice.