New California Bill Could Raise Fees for Millions of Homeowners
Similar legislation already introduced in Florida sent HOA fees through the roof. Some fear the same would happen in California.
California Governor Gavin Newsom must make a decision within nine days about signing or vetoing Assembly Bill 2050, which could raise homeowners association (HOA) fees for millions of homeowners in the state. Introduced by Democrat Jessica Caloza in February and supported by co-authors Diane Dixon and Richard Chavez Zbur, the bill is based on the lessons learned from the Champlain Towers South collapse in Surfside, Florida in 2021, where 98 people were killed.
The bill requires HOAs to maintain a 30-year reserve fund for significant maintenance and repairs, which they must proactively and adequately save for. If HOA reserves fall below zero over the period, homeowners would face a special assessment to cover the gap. With the median HOA fee in Florida rising to $390 last year from $232 in 2022, California homeowners fear similar increases.
Robert Herrell, executive director of the Consumer Federation of California, expressed concern that the bill could lead to massive assessment increases for 3.3 million Californian households, who currently pay a median monthly HOA fee of $278.
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