Civil Code Assessments & Liens
Levying Assessments
Chapter 8 · Assessments and Assessment Collection · Establishment and Imposition of Assessments
Text current as of 2026-07-07 · Last amended by AB 805, eff. 2014-01-01
The code says CIV §5600
(a) Except as provided in Section 5605, the association shall levy regular and special assessments sufficient to perform its obligations under the governing documents and this act.
(b) An association shall not impose or collect an assessment or fee that exceeds the amount necessary to defray the costs for which it is levied.
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
In plain English
Editorial summary — not the statute’s text.
The association must levy assessments sufficient to meet its obligations — and may not collect more than the cost being defrayed. Under-assessing to keep dues popular is as much a violation as padding fees.
What this means for you
Editorial summary — not the statute’s text.
- Assessments track obligations: if the budget can’t fund your duties, the board must raise them.
- Every fee needs a cost basis — “revenue” is not a permissible purpose.
- Watts v. Oak Shores applied this cost-basis test to short-term rental fees.
How courts have read this
Editorial summaries — not the court’s words.
- Watts v. Oak Shores Community Assn. 235 Cal.App.4th 466 · 2015 Associations may reasonably regulate short-term rentals.
The cap on fees — no more than needed to defray the cost — is met by a reasonable good-faith estimate; an exact correlation between a use fee and its cost is not required.
- Dey v. Continental Central Credit 170 Cal. App. 4th 721 · 2008 Statutory fee caps bind associations, not their outside vendors.
decided before the current text (eff. 2014-01-01, AB 805)
- Berryman v. Merit Property Management, Inc. 152 Cal. App. 4th 1544 · 2007 Document and transfer fee caps bind associations, not their managing agents.
decided before the current text (eff. 2014-01-01, AB 805)
- Brown v. Professional Community Management, Inc. 127 Cal. App. 4th 532 · 2005 The fee-cost limit binds associations, not their managing agents.
decided before the current text (eff. 2014-01-01, AB 805)
- FOOTHILLS TOWNHOME ASSN. v. Christiansen 65 Cal. App. 4th 688 · 1998 Reserve-replenishing special assessments do not exceed the costs they defray.
decided before the current text (eff. 2014-01-01, AB 805)
- Park Place Estates Homeowners Assn. v. Naber 29 Cal. App. 4th 427 · 1994 Owners cannot offset assessments against grievances with the association.
decided before the current text (eff. 2014-01-01, AB 805)
- Ruffier v. Volcano Hills Road Maintenance Assn. 2026 A board cannot raise regular assessments without member approval or budget compliance.
cited 4×
- In re: Maria A. Basave De Guillen 604 B.R. 826 · 2019 Assessment liens secure only the amounts stated in the recorded notice.
cited 2×
- Huntington Continental Townhouse Ass'n v. Miner 230 Cal. App. 4th 590 · 2014 Associations must accept partial payments toward delinquent assessments.
cited 2×
- Lauckhart v. El Macero Homeowners Assn. 92 Cal. App. 5th 889 · 2023 Acquiring common area brings a development under the Davis-Stirling Act.
mentioned in passing
Decided under the former numbering
- Fowler v. M&C Ass'n Management Services, Inc. 220 Cal. App. 4th 1152 · 2013 · as former §1366.1 Manager transfer fees are Act-authorized and need no recorded notice.
decided before the current text (eff. 2014-01-01, AB 805)
- Cebular v. COOPER ARMS HOMEOWNERS ASS'N 142 Cal. App. 4th 106 · 2006 · as former §1366.1 Assessments proportioned to voting power are not wholly arbitrary.
decided before the current text (eff. 2014-01-01, AB 805)