Local costs and rules
HOA Fees and Rules in the Sacramento Region
How HOA dues, special assessments, reserves and CC&Rs work in California, and what to ask before you buy.
What is an HOA, and what are CC&Rs?
A homeowners association, or HOA, runs the shared parts of a planned community or condo building. It collects dues, keeps up the common areas and enforces the community's rules.
Those rules start with the CC&Rs, short for covenants, conditions and restrictions. The CC&Rs are recorded against the property, so they bind every owner, including you once you buy. They can cover paint colors, fences, parking, pets, rentals and more. The association's bylaws and its rules and regulations add detail.
In California, most HOAs fall under the Davis-Stirling Common Interest Development Act, found in Civil Code sections 4000 and following. It sets rules for budgets, reserves, meetings, assessments and what a seller must hand to a buyer.
This page is general information, not legal advice. For a dispute or a contract question, talk with a real estate attorney.
What's the difference between HOA dues and a special assessment?
Regular dues are the monthly or quarterly amount every owner pays. They cover the yearly budget and the savings for future repairs.
A special assessment is an extra charge for something the budget didn't cover, such as a roof replacement or a lawsuit settlement. It can be a single bill or spread over months.
California limits how far a board can go without an owner vote. Under Civil Code section 5605 (checked October 22, 2026), the board can't raise regular dues more than 20 percent over the prior year without member approval. Special assessments can't total more than 5 percent of the year's budgeted gross expenses without member approval either. Other parts of the law allow exceptions in an emergency.
What is an HOA reserve study, and why does it matter?
A reserve study looks at the big shared items the HOA must repair or replace, such as roofs, paving, pools and building systems. It estimates how long each one will last and what it will cost. Then it shows how much the HOA should be saving each year.
Civil Code section 5550 (checked October 22, 2026) requires a visual inspection at least once every three years when those components are worth at least half the yearly budget. The board must review the study every year.
Why you care: an HOA that hasn't saved enough may need a special assessment or a dues increase later. Compare the reserve balance in the disclosures to what the study says the HOA should have. A wide gap is worth a question before you remove your contingencies.
What HOA documents does a California seller have to provide?
Civil Code section 4525 (checked October 22, 2026) lists what a seller gives a buyer as soon as practicable before the sale closes. It includes:
- All governing documents, such as the CC&Rs, bylaws and rules
- The most recent budget and financial disclosures the HOA sent owners
- A statement of current dues, special assessments and any unpaid amounts on the home
- Any unresolved violation notices sent to the seller
- Notice of any approved dues or assessment changes not yet due
- Any rule that limits renting or leasing
- Information about any construction defect claims, when there are any
- The most recent inspection report under section 5551, which covers balconies and other elevated wood structures
- Board meeting minutes from the past 12 months, if you ask for them
Ask for the minutes. They often show what the board is planning before it reaches a budget.
Selling a home in an HOA? Order the packet early. Our seller disclosures guide covers the rest of what a California seller provides.
How do HOA fees affect your mortgage payment?
Lenders count them. Fannie Mae's Selling Guide (section B3-6-03, checked October 22, 2026) includes association dues and special assessments in the monthly housing expense. That number feeds your debt-to-income ratio.
A worked example in words: two homes cost the same. One has monthly HOA dues and the other has none. The home with dues has a higher payment, so it may cut the price you qualify for. The dues might also cover things you'd pay for anyway, such as exterior upkeep, water or a pool. Compare the full monthly cost, not the dues alone.
Maggie B. Hopkins builds that full payment for each home you're considering and shops the loan across a network of approved lenders. Try your own numbers in our mortgage calculator.
How are condo HOAs different from single-family HOAs?
In a condo, the HOA usually owns and insures more, such as the roof, exterior walls and shared hallways. Dues tend to cover more, and the reserve study carries more weight. You'll usually carry your own policy for the inside of your unit and your belongings. Read the HOA's insurance summary to see where its coverage stops and yours starts.
Some loan programs also look at the condo project itself, such as its finances and how many units are rented. If you plan to use an FHA or VA loan, check early whether the project meets that program's rules.
In a single-family HOA, you usually own and insure your house and lot. The HOA covers common areas like parks, gates, landscaping or a clubhouse, and its rules focus on how homes look and how the community is used.
What should you know about HOAs in 55+ communities?
Many 55+ communities in Roseville, Lincoln and El Dorado Hills have an HOA that runs the clubhouse, pools, fitness rooms and activities. Dues often reflect those amenities. Rules often cover guest stays and who may live in the home.
California's age rules for senior housing are in Civil Code section 51.3. Section 4525 says that when an HOA's age rules differ from that section, the seller must give a statement that the restriction is enforceable only as far as section 51.3 allows.
Our 55+ community guide compares communities across the region. If you're selling a home in one, see our 55+ selling page.
What should you ask before buying a home with an HOA?
- What are the dues now, and how much have they gone up in recent years?
- Is there a special assessment approved, proposed or under discussion?
- How much is in reserves compared to what the reserve study recommends?
- Is the HOA in a lawsuit, or has it filed a construction defect claim?
- What do the dues cover, such as water, trash, exterior paint or the roof?
- Can you rent the home out, and for how long at a time?
- Are there limits on pets, parking, RVs, solar panels or remodeling?
- What do the last 12 months of board minutes talk about?
Write your questions down as you read the packet and get answers in writing before your contingencies end. Our inspections and contingencies guide explains that timeline.
How do you get started with a home in an HOA?
Call Maggie at (916) 549-3131 or send us a note. If you're buying, we'll read the HOA packet with you and flag what needs a question. If you're selling, we'll order the documents early so your buyer has them on time.
Our free buyer guide and seller guide walk through the rest of the process.
Frequently Asked Questions
What law governs HOAs in California?
Most fall under the Davis-Stirling Common Interest Development Act, Civil Code sections 4000 and following. It covers budgets, reserves, assessments, meetings and resale disclosures.
Can my HOA raise dues whenever it wants?
Not without limits. Civil Code 5605 bars raising regular dues more than 20 percent over the prior year without member approval, with exceptions allowed in an emergency.
How big can a special assessment be without a vote?
Under Civil Code 5605, special assessments can't total more than 5 percent of the year's budgeted gross expenses without member approval, apart from emergency exceptions.
Who pays for the HOA documents when I sell?
The HOA charges a fee for the resale packet, and the purchase contract says who pays it. It's often the seller, and it can be negotiated.
Do HOA dues count against my loan approval?
Yes. Lenders include association dues and special assessments in your monthly housing expense when they figure your debt-to-income ratio.
Can an HOA stop me from renting my home?
Some can limit rentals. The seller must disclose any rule that prohibits renting or leasing, so read it before you buy if you might rent the home later.
What's a reserve study?
A plan for the big repairs the HOA will face, what they'll cost and how much it should save each year. California requires a visual inspection at least every three years for most HOAs.
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