2026 Mid Session Legislative Update

 A record number of proposed new laws that may impact our California communities are making their way through the legislature.

Now that the second half of the legislative session is in full swing and the bill introduction deadline has passed, we provide here our annual mid-year update on pending legislation expected to impact California community associations.

As the legislation makes its way through the State Senate and Assembly, efforts to modify the language of these proposed new laws will continue, and we may see revisions.  The following summary represents the language of proposed community association legislation at this time.

Pending California Proposed Legislation

Financial Oversight and Disciplinary Requirements - SB 1007 (Menjivar)
Cap on Assessment Increases and Disciplinary Hearing Requirements

This proposed legislation would prohibit a board from imposing a regular assessment increase greater than 8% over the preceding year, without membership approval.

This bill would also require an association to provide any physical evidence of a violation at least 5 business days before the hearing where discipline is being considered.

This legislation would amend Civil Code Section 5606 that authorizes an association to increase assessments 20% over the preceding year without membership approval, reversing board authority over setting assessments needed to fulfill basic maintenance and operation of communities. This will have significant impact on a board’s ability to meet budget expenses given rising costs.  We are encouraging communities to reach out to their legislators with feedback on the damaging impact this legislation will have on budgets and maintenance.

The bill was passed through the Judiciary and Housing Committees in the Senate.

Common-Interest Discipline – AB 2579 (Petrie-Norris)
Review of AB 130 Enforcement Fine Limitations

Last year, Assembly Bill 130 imposed restrictive language that placed a $100 cap on enforcement fines, with narrow exceptions for determined health and safety impact violations. These vague amendments to Civil Code Sections 5850 and 5855 left many associations uncertain as to how to effectively enforce their governing documents. 

This proposed legislation attempts to provide clarity as to the types of violations that would warrant a health and safety exception to the $100 fine limit.  It does so by compelling the California Department of Real Estate to develop a list of specific violations of safety or environmental risks that are eligible for penalties exceeding $100. 

The bill has passed the Assembly Housing and Community Development Committee, the Assembly Judiciary Committee, and Appropriations with support.

Maintenance and Elections – AB 1892 (Davies)
Timely Restoration of Utilities; Cleanup of Election by Acclamation; Electronic Voting

Common Area Maintenance and Repair

This proposed legislation would require associations to be responsible for restoring use of gas, heat, water, and electrical services. It amends language in Civil Code Section 4775 that expands association obligation for repairs over any interruptions occurring in the common area, regardless of where the utility originates. Current law has language that only obligates an association to make repairs when issues originate in common area utilities. The new law will require an association to make timely repairs whenever any portion of the utility passes through the common area, regardless of where  it originates from.

Election By Acclamation; Timing

The proposed legislation also includes amendments to Civil Code Section 5103 allowing election by acclamation. The amendment would reduce the initial notice of intent to use acclamation from 90 days down to 30 before the deadlines for nominations.

Finally, the proposed legislation would clarify that the notice used during electronic voting shall be limited to those who will be casting electronic ballots. It would amend Civil Code 5105 to send the notice of the ballot no later than 30 days to those who expressed their desire to use electronic voting.

The proposed changes will maintain voter protections while allowing elections to proceed more quickly.

The bill has passed both the Assembly Housing and Community Development and Judiciary Committees and is now awaiting consideration on the Assembly Floor.

Assessment Notice– AB 2439 (Rubio and Lowenthal)
Requirement to Change Location of Assessment Payment

The proposed legislation would require associations to notify owners by certified mail within 60 days when there is a change in the person authorized to receive payment of assessments. It would add language to Civil Code 5690 that would create a civil penalty of $1,000 for associations who fail to provide timely notice of the change. 

This bill is another attempt by the legislature to address housing affordability by limiting possible fines or late fees owners can incur for late payments on their accounts. It would require associations to bear additional costs in mailings, and add to the burdens associations have in pursuing delinquent assessments.

The bill has passed through the Assembly and is currently in the Senate for assignment.

Reserve Accounts – AB 2050 (Caloza)
Identify Minimum Annual Contribution

The proposed legislation would require reserve studies to identify the minimum annual contribution necessary to prevent reserves from falling below zero over a 30-year period. It would amend Civil Code 5550 to allow an association to fund the reserves using a reserve special assessment in an amount to avoid the need for additional special assessments for 9 fiscal years.

The legislation was introduced to give boards strict requirements on funding association reserves consistent with the recommendations in the reserve study. This bill is an effort to lead associations toward greater financial stability with more adequately funded maintenance reserves thereby reducing the need for large special assessments when components require repair or maintenance.

The bill has passed both the Assembly Housing and Community Development Committee and the Assembly Judiciary Committee.

Reinstatement of Expired Declarations – AB 2692 (Irwin)
Process for Reinstatement of Expired Documents in LA County

This proposed legislation would allow associations in Los Angeles County to reinstate their CC&Rs after termination. It adds Civil Code Section 4726 that would require the association to seek approval of the reinstatement from the percentage of members required in their CC&Rs, and would automatically terminate the authority for reinstatement after January 1, 2028.

This legislation was specifically introduced in response to communities struggling through the Eaton and Palisades fires if January  2025. It will allow communities to reinstate expired CC&Rs to expedite use of insurance proceeds and simplify the rebuilding process.

The bill has passed through the Assembly and is currently in the Senate for assignment.

ENVIRONMENTAL HOA  LEGISLATION

Cooling Systems – AB 1684 (Ward)
Prevents Restrictions on Owner Cooling Systems

This proposed legislation would void any language in the governing documents that attempts to prohibit installation or upgrade of a cooling system. It adds language to existing Civil Code Section 4738 that would allow an association to limit systems that impact or damage common area, but would penalize associations up to $2,000 and actual costs for attempts to prohibit or restrict systems under individual owner control. 

This legislation would add a protected use for owners who want to install updated and environmentally compliant cooling systems.

The bill has passed through the Assembly and is currently in the Senate for assignment.

Heat Pumps - SB 222 (Weiner)
VOID documents prohibiting HVAC and Heat Pumps

This proposed legislation would require a local entity or association to approve plug-in ready window air-conditioner or window heat pump HVAC systems, provided that certain requirements are met. It adds Civil Code 4737 which will void any governing documents that attempt to prohibit or restrict the installation or use of a residential heat pump, water heater and heat pump heating, ventilation, and air-conditioning (HVAC).

This legislation would prevent boards from interfering with owners who want to install heat pumps or swap carbon burning appliances with electric appliances.

The bill is currently in the Senate.

Residential Windows - SB 908 (Wiener)
Requires Boards to Approve Energy Efficient Windows

This proposed legislation would require an association to allow an owner to complete a window replacement. It adds Civil Code 4754 which will also void any governing documents that attempt to prohibit or restrict the installation or use of Energy Compliant windows.

This legislation would prevent boards from interfering with owners who want to install updated windows.

The bill is currently in the Senate.

Construction Defect – AB 1903 (Wicks and Wilson)
Limit Developer Liability

This proposed legislation would essentially eliminate associations from pursuing defects in new construction after January 1, 2027. It would also prevent associations from pursuing construction defect claims on behalf of individual owners, and require a 70% approval by owners in the association before litigation can be filed.

This bill represents the legislature’s continued focus on affordable housing, and is designed to encourage more developers to enter the market by reducing the risk of defect litigation.

The bill has passed both the Assembly Appropriations and Judiciary Committees and is now awaiting consideration on the Assembly Floor. 

Amending Documents – AB 2035 (Dixon)
Lower Approval Requirements for Senior Communities

This proposed legislation would lower the percentage of votes needed to 37% in senior communities. It adds language Civil Code Section 4725 that would allow a senior community that has not amended in at least 35 years to petition the court to approve amendments in communities over 6,000 where more than 25% of those residences are occupied by tenants.

The bill has passed through the Assembly and is currently in the Senate for assignment.

ADU - SB 1117 (Cervantes)
Reducing Mandatory ADU Fees

This proposed legislation would reduce the overall charges that can be applied to the construction of an ADU. Current law allows fees on structures at 750 square feet, and the new law would allow those fees to be charged only on the portion of the ADU greater than 750 square feet.

This bill is intended to reduce the cost owners will see when finalizing ADU projects, and is intended to encourage more construction of ADU structures to address the California housing shortage.

The bill is currently in the Senate.

Manager Liability - SB 1238 (Wahab)
Manager Liability for Board Decisions

This proposed legislation would require that any person or entity that serves an association is liable to both an association and its owners. It adds Civil Code Section 5390 which imposes the highest good faith effort on managers who carry out duties for an association, including when reviewing or handling an association’s financial accounts.

This bill would burden associations by enlarging their obligations to ensure oversight and insurance over management, while also increasing the risk of individual managers who are carrying out duties as directed by the board.

The bill is currently in the Senate.

Our firm continues efforts to ensure more sensible legislation that enables our association clients to govern themselves effectively.

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Click Here to download our 2026 Mid Session Legislative Update booklet.