Can My HOA Foreclose on My Home in California?

In California, a homeowners' association can foreclose on a home to collect unpaid assessments, but the Davis-Stirling Common Interest Development Act puts a dollar-or-time floor and a series of offers, votes, and notices in front of that remedy. For your specific situation, a licensed California attorney is the right resource. This is general information about how the statute is structured, not legal advice.

Where the rules come from: the Davis-Stirling Common Interest Development Act (Civil Code §§4000–6150, beginning at §4000) is the main state law governing California common interest developments, and its sections on collecting assessments and enforcing liens run from §5650 to §5740. It does not operate alone. The association's recorded declaration (CC&Rs) works alongside the act, though where the two conflict, "the law shall prevail" (§4205(a)). Applicable federal law also applies, and because the act defines an association as "a nonprofit corporation or unincorporated association" (§4080), an incorporated association is also subject to California's Nonprofit Mutual Benefit Corporation Law (Corp. Code §7110 and following).

The dollar-or-time threshold

The central protection is in §5720, which applies to "debts for assessments that arise on and after January 1, 2006" (§5720(a)). Below $1,800 in delinquent assessments, an association "may not collect that debt through judicial or nonjudicial foreclosure." It may instead sue in small claims court, record a lien, or use "Any other manner provided by law, except for judicial or nonjudicial foreclosure" (§5720(b)(1)–(3)). A recorded lien carries its own limit:

"may not foreclose until the amount of the delinquent assessments secured by the lien, exclusive of any accelerated assessments, late charges, fees and costs of collection, attorney's fees, or interest, equals or exceeds one thousand eight hundred dollars ($1,800) or the assessments secured by the lien are more than 12 months delinquent." — §5720(b)(2), Cal. Civ. Code

Two things stand out. First, the $1,800 figure counts only the assessments themselves: late charges, collection fees, attorney's fees, and interest don't count toward it. Second, the time-based alternative (more than 12 months delinquent) means a long-running delinquency can qualify even below the dollar amount.

The floor also has listed exceptions. Under §5720(c), the minimum does not apply to assessments secured by a lien that are more than 12 months delinquent, to assessments owed by time-share owners, or to "Assessments owed by the developer."

Fines are not foreclosable assessments

The threshold is about assessments. Fines sit in a different category under §5725(b): a monetary penalty for failing to comply with the governing documents, other than for late payments, "may not be characterized nor treated in the governing documents as an assessment that may become a lien against the member's separate interest enforceable by the sale of the interest." How California fines themselves are imposed is covered in California HOA fines and hearings.

What must a California HOA do before putting a lien on my home?

It must give notice, offer dispute resolution, and hold a board vote. Under Civil Code §5660, at least 30 days before recording a lien, the association must send a certified-mail notice, including the right to request a payment-plan meeting (§5665). It must also offer dispute resolution (§5670), and the board alone decides, by majority vote in an open meeting (§5673).

Foreclosure is the last step, not the first. At least 30 days before recording a lien, the association must send the owner a certified-mail notice under §5660. That notice includes, among other items, a statement that a home placed in foreclosure "MAY BE SOLD WITHOUT COURT ACTION," the right to request a meeting with the board about a payment plan under §5665, and the right to dispute the debt through the association's "meet and confer" program.

Before recording, the association must also offer that dispute resolution and participate if the owner asks (§5670). The decision to record the lien belongs to the board alone, approved "by a majority vote of the directors in an open meeting" (§5673). The notice and recording steps are walked through in how California HOA assessment liens are created.

What must a California HOA do before foreclosing on my home?

It must wait 30 days after recording the lien and take three more steps (Civil Code §5700). For debts arising since January 1, 2006, under §5705, the association must offer dispute resolution again, the board alone must approve foreclosure by majority vote at least 30 days before any public sale, and the owner must receive notice of the vote.

A recorded lien is not immediately enforceable. Under §5700(a), it may be enforced only "after the expiration of 30 days following the recording" of the lien. For debts arising on or after January 1, 2006, §5705 then adds three more steps:

• A second dispute-resolution offer. Before initiating foreclosure, the association "shall offer the owner and, if so requested by the owner, participate in dispute resolution." Which kind is the owner's choice, "except that binding arbitration shall not be available if the association intends to initiate a judicial foreclosure" (§5705(b)).
• A board-only vote. The decision "shall be made only by the board and may not be delegated to an agent of the association," by majority vote in executive session, recorded in the minutes of the next open meeting by parcel number rather than owner name (§5705(c)).
• Timing and service. "A board vote to approve foreclosure of a lien shall take place at least 30 days prior to any public sale" (§5705(c)), and an owner who occupies the home gets notice of the vote by personal service, while a non-occupying owner gets it by first-class mail (§5705(d)).

Does a California HOA need a court order to foreclose?

No, not always. Under Civil Code §5700, a lien may be enforced in any manner permitted by law, including sale by the court or sale by the trustee named in the notice of delinquent assessment. A trustee sale follows the Civil Code's deed-of-trust sale rules, and the home may be redeemed within 90 days after a nonjudicial sale (§5715(b)).

Under §5700(a), a lien may be enforced "in any manner permitted by law, including sale by the court, sale by the trustee designated in the notice of delinquent assessment." A trustee sale follows the Civil Code's deed-of-trust sale rules, and the association must also serve a notice of default on the owner (§5710). A nonjudicial sale is not necessarily final on the sale date:

"The redemption period within which the separate interest may be redeemed from a foreclosure sale under this paragraph ends 90 days after the sale." — §5715(b), Cal. Civ. Code

The bigger picture

California's statute allows assessment-lien foreclosure once the §5720 threshold is crossed and the pre-lien and pre-foreclosure steps are followed, and it keeps fines out of that remedy. Whether the threshold was met and each step observed is fact-specific, and a licensed California attorney is the right resource for advice on a particular situation. For how this compares to other states, see our general overview of whether an HOA can foreclose on your home.

Frequently asked questions

How far behind do I have to be before my California HOA can foreclose?

Under §5720(b)(2), the association generally cannot foreclose until the delinquent assessments alone reach $1,800, or the assessments are more than 12 months delinquent, whichever comes first. Section 5720(c) lists exceptions, including assessments owed by time-share owners or the developer.

Do late fees and attorney's fees count toward the $1,800?

No. The statute excludes accelerated assessments, late charges, collection fees and costs, attorney's fees, and interest from the $1,800 calculation; only the assessments themselves count.

Can a California HOA foreclose over unpaid fines?

Section 5725(b) says a disciplinary monetary penalty, other than for late payments, may not be treated as an assessment that becomes a lien enforceable by sale.

What can I do if my HOA threatens foreclosure?

The options depend on the specific facts: the amounts, the timeline, and whether the required notices, offers, and votes happened. The statute gives owners the right to request dispute resolution before foreclosure (§5705(b)) and, after a nonjudicial sale, a 90-day redemption period (§5715(b)). A licensed California attorney familiar with Davis-Stirling is the appropriate resource.

Sources

• California Civil Code §4000 — Davis-Stirling Common Interest Development Act; short title
• California Civil Code §4080 — Association defined
• California Civil Code §4205 — Conflicts between the law and governing documents
• California Civil Code §5660 — Notice before recording a lien
• California Civil Code §5665 — Payment plan meeting
• California Civil Code §5670 — Dispute resolution before recording a lien
• California Civil Code §5673 — Board vote to record a lien
• California Civil Code §5700 — Enforcement of a recorded lien
• California Civil Code §5705 — Dispute resolution, board vote, and notice before foreclosure
• California Civil Code §5710 — Trustee sale; notice of default
• California Civil Code §5715 — Right of redemption after nonjudicial foreclosure
• California Civil Code §5720 — Foreclosure of assessment lien; limitations
• California Civil Code §5725 — Fines and repair charges as liens
• California Corporations Code §7110 — Nonprofit Mutual Benefit Corporation Law