Millions of California Homeowners at Risk of HOA Fee Increases Under New Bill

Only days remain before California Gov. Gavin Newsom must make a decision on a bill that is designed to protect homeowners, but that critics say may raise homeowners association (HOA) fees for millions of residents.The bill in question, Assembly Bill 2050, was proposed in February by Democrat Jessica Caloza and co-authors Republican Diane Dixon and Democrat Richard Chavez Zbur. After several amendments were made to the proposal, it passed last month and is now in the hands of Newsom.The governor has until Sept. 30 to decide whether to sign the bill into law. With concerns about housing costs at the top of mind for many voters, the decision may be fraught.HOAs handle the maintenance, repair, and replacement of community communal areas, “including, but not limited to, roofs, paving, mechanical systems, and critical infrastructure,” the bill reads.In order to protect the safety and property values of their residents, HOAs must “proactively and adequately save for these significant long-term structural and operational obligations.” Associations that don’t properly fund reserve accounts put homeowners at risk of needing to levy steep special assessments, the legislation states.The legis...