California HOA Collections & Liens

Section 1: Overview — How assessment collection and liens work in California

The Davis-Stirling Common Interest Development Act (Cal. Civ. Code § 4000 et seq.) concentrates its collection and lien rules at §§ 5650 to 5740, and California's regime stands as one of the most owner-protective in the country. The law requires a detailed pre-lien notice and internal-dispute-resolution sequence before an association can record a lien. It bars foreclosure unless the debt reaches a dollar floor or a 12-month delinquency. And it gives a foreclosed owner a post-sale right of redemption that ordinary California mortgage law does not provide. Every figure on this page comes from current Civil Code text.

The association lien does not arise automatically when an assessment comes due. It arises only when the association records a notice of delinquent assessment with the county recorder. California grants no super-priority lien ahead of the first mortgage; the lien's priority dates from recording. An association may pursue foreclosure either judicially or non-judicially, by power of sale, at its own election. But it may not use foreclosure to collect delinquent regular or special assessments unless the amounts owed — exclusive of late charges, fees, attorney fees, interest, and collection costs — reach $1,800, or the assessments are more than 12 months delinquent. California is a threshold-restricted, non-UCIOA state: it bars foreclosure below a dollar or time minimum without granting any priority portion ahead of the first mortgage. That distinguishes it from super-priority states such as Nevada, which gives associations a nine-month super-lien under NRS 116.3116(2)(b), and Colorado, which provides a six-month super-lien under C.R.S. § 38-33.3-316(2)(b). The sections below set out the lien, its priority, the operational collection-and-foreclosure sequence, and recent legislative and judicial activity.

California HOA Collections & Liens at a glance

Source: Davis-Stirling Common Interest Development Act, Cal. Civ. Code §§ 5650–5740. Last verified: June 9, 2026.

Section 2: The lien and its priority

2A. Lien creation, authority, and what it secures

The assessment lien is a statutory creation of the Davis-Stirling Act. A regular or special assessment — plus any late charges, reasonable fees and costs of collection, reasonable attorney fees, and interest — becomes a debt of the owner of the separate interest at the time the association levies it.¹¹ That debt does not automatically become a recorded lien. Under § 5675, the assessment amount plus permitted costs becomes a lien on the owner's separate interest only from and after the time the association records a notice of delinquent assessment with the county recorder of the county where the separate interest is located.² The recorded notice must state the amount of the assessment and other sums, a legal description of the owner's separate interest, and the name of the record owner; the association must record the itemized statement of charges described in § 5660(b) alongside it.² A copy of the recorded notice must reach every record owner of the separate interest by certified mail no later than 10 calendar days after recordation.² These steps apply to both condominiums and planned developments.

The lien's scope is limited by statute. The association may recover the delinquent assessments themselves, reasonable costs of collection (including reasonable attorney fees), a late charge not exceeding 10 percent of the delinquent assessment or $10 (whichever is greater), and interest on all such sums at an annual rate not exceeding 12 percent, commencing 30 days after the assessment becomes due.¹¹ Fines and disciplinary monetary penalties fall outside a foreclosable assessment lien.¹² The lien attaches to the owner's separate interest — the unit or lot — and does not reach the owner's other property.²

A structural limitation matters for any running delinquency: the Davis-Stirling Act does not authorize a continuing or "rolling" assessment lien. In Highland Greens Homeowners Ass'n v. De Guillen, the Bankruptcy Appellate Panel for the Ninth Circuit held that the Act does not allow a continuing lien and imposes a duty on associations to provide additional pre-lien notices before recording a subsequent lien to capture assessments that accrued after the first recording.¹³ A single recorded notice secures only the amounts itemized in it.

2B. Lien priority and any super-priority component

California's priority rule comes from § 5680: a lien created under § 5675 takes priority over all other liens recorded after the notice of delinquent assessment, except that the declaration may provide for subordination of the association lien to other liens and encumbrances.³ Priority therefore dates from recording, and the association lien follows the ordinary "first in time, first in right" rule against earlier-recorded interests. A first mortgage or deed of trust recorded before the association's notice of delinquent assessment is senior and survives an association foreclosure; the buyer at an association sale takes title subject to that senior mortgage. A recorded tax lien or mechanic's lien that predates the association's recording is likewise senior; junior liens recorded after the association's notice are generally extinguished by the association's foreclosure.³

California has NO super-priority lien. Unlike Nevada — which gives a nine-month super-lien under NRS 116.3116(2)(b) — Colorado — which provides a six-month super-lien under C.R.S. § 38-33.3-316(2)(b) — and other states that follow the Uniform Common Interest Ownership Act, California grants the association no priority portion ahead of the first mortgage for any number of months of assessments. Because there is no super-priority portion, the "rolling lien" question that arises in super-priority states does not apply in California; the priority of the association lien is fixed at the recording date of the notice of delinquent assessment.³ Stated plainly: a California association lien is senior only to interests recorded after the association records its notice of delinquent assessment, and it is junior to any first mortgage recorded earlier.

2C. CC&R interaction, corporate-law overlay, and federal overlay

Recorded CC&Rs (the declaration) supplement the statutory lien and can subordinate the association lien to other liens and encumbrances, as § 5680 expressly contemplates.³ But CC&Rs cannot override the mandatory statutory protections: the pre-lien notice, the board-vote requirements, the dispute-resolution offers, the $1,800-or-12-month foreclosure threshold, and the 90-day redemption right all apply regardless of contrary provisions in the governing documents, because the relevant sections state they apply notwithstanding any contrary provision in the governing documents.⁴ Where the CC&Rs are silent or less protective than the statute, the statute controls.

The statute of limitations on the underlying assessment debt is four years. An action to collect a debt founded on a written instrument — including the recorded CC&Rs that obligate an owner to pay assessments — falls under the four-year limitations period of Code of Civil Procedure § 337.¹⁴

Three federal frameworks apply on top of the California regime regardless of state law, and every California association and its managing agent must observe them. The federal Fair Debt Collection Practices Act (FDCPA) reaches associations' law firms and third-party collectors and constrains the content and timing of collection communications; the Ninth Circuit held in Mashiri v. Epsten Grinnell & Howell that a pre-lien notice demanding payment on a timeline inconsistent with the FDCPA's 30-day debt-validation right can violate the Act.¹⁵ The automatic stay in bankruptcy halts collection, lien recording, and foreclosure the moment an owner files a petition. The Servicemembers Civil Relief Act (SCRA) protects active-duty servicemembers, including setting limits on foreclosure.

Section 3: The collection and foreclosure process

3A. Pre-lien collection sequence

An assessment becomes delinquent 15 days after it is due, unless the declaration provides a longer period.¹¹ Before recording an assessment lien, the association must complete a statutory pre-lien sequence that applies to both condominiums and planned developments.

At least 30 days before recording a lien on the owner's separate interest, the association must notify the owner of record in writing by certified mail.⁶ The § 5660 notice must contain: a general description of the association's collection and lien-enforcement procedures and the method of calculating the amount owed; a statement of the owner's right to inspect association records under § 5205; the statutory foreclosure warning in 14-point boldface type (if printed) or capital letters (if typed) reading "IMPORTANT NOTICE: IF YOUR SEPARATE INTEREST IS PLACED IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR ASSESSMENTS, IT MAY BE SOLD WITHOUT COURT ACTION."; an itemized statement of the charges owed showing how and when payments were applied; a statement that the owner is not liable for charges, interest, and collection costs if the assessment was paid on time; a statement that collection practices may be governed by state and federal fair-debt-collection laws; the owner's right to request a meeting with the board to discuss a payment plan under § 5665; the owner's right to dispute the debt through the association's internal dispute resolution (IDR) "meet and confer" program under § 5900 et seq.; and the owner's right to request alternative dispute resolution (ADR) with a neutral third party under § 5925 et seq. before the association initiates foreclosure.⁶ California courts hold associations to strict compliance with these requirements; in Diamond v. Superior Court, the Court of Appeal held that substantial compliance with the pre-lien and pre-foreclosure notice requirements is insufficient and that strict compliance is required.¹⁶

The owner carries real rights before any lien is recorded. The owner may submit a written request to meet with the board to discuss a payment plan for the noticed debt; if that request arrives within 15 days of the postmark of the pre-lien notice, the board must meet with the owner in executive session within 45 days of the request's postmark — unless no regularly scheduled board meeting falls within that window, in which case a committee of one or more directors may meet with the owner.⁸ California sets no statutory minimum payment-plan length or terms; the association must disclose its payment-plan standards if any exist, but the statute does not require it to grant a plan.⁸ Separately, before recording a lien, the association must offer the owner — and if requested, participate in — IDR under the association's "meet and confer" program.¹⁷ The owner also has the right to an itemized statement of charges (included in the pre-lien notice) and the right to inspect association records to verify the debt.⁶ Any payment the owner makes goes first to assessments owed and only then to fees, collection costs, attorney fees, late charges, or interest.¹⁸

3B. Recording and the pre-foreclosure sequence

The decision to record a lien belongs exclusively to the board and cannot be delegated to a managing agent or counsel. Under § 5673, for liens recorded on or after January 1, 2006, the board must approve recording the lien by a majority vote of the directors in an open meeting and must record the vote in the minutes of that meeting.¹⁹ This statutory requirement applies to both condominiums and planned developments. The association then records the notice of delinquent assessment with the county recorder; the notice must contain the contents described in § 5675 — amount, legal description, record owner's name, the itemized statement, and, for non-judicial enforcement, the name and address of the trustee authorized to enforce the lien by sale — and a copy must reach each record owner by certified mail within 10 calendar days after recordation.²

Recording the lien starts a 30-day clock. Under § 5700, after 30 days following the recording of a § 5675 lien, the association may enforce the lien by sale in court, by the designated trustee, or by a substituted trustee.⁵ Before initiating foreclosure, the association must again offer the owner the choice of IDR or ADR; if the owner requests it, the association must participate before moving to foreclosure — though binding arbitration is not available if the association intends to pursue judicial foreclosure.²⁰ The decision to initiate foreclosure of a validly recorded lien must come only from the board and may not be delegated to an agent; the board must approve it by a majority vote in executive session, record the vote in the minutes of the next open meeting (identifying the matter by parcel number rather than owner name), and the vote must occur at least 30 days before any public sale.⁹ The board must serve notice of its decision to foreclose on an owner-occupant by personal service in the manner of service of summons, or on a non-occupant owner by first-class mail.⁹ For a non-judicial sale, the association — through its trustee — must also serve and record a notice of default and a notice of sale under the general power-of-sale statutes, §§ 2924, 2924b, and 2924c.⁷

3C. Foreclosure mechanics and thresholds

Foreclosure may be judicial or non-judicial, at the association's election.⁵ Judicial foreclosure involves filing a lawsuit in superior court to obtain a court order authorizing the sale and, potentially, a personal money judgment against the owner. Non-judicial foreclosure — a trustee's sale — runs under the power-of-sale procedures of §§ 2924, 2924b, and 2924c that apply to mortgages and deeds of trust, with the additional notice of default served on the owner in the manner of service of summons.⁷ A non-judicial sale generally cannot be set until approximately 90 days or more after the notice of default is recorded, followed by a notice of sale that is published, posted, and recorded before the auction. These mechanics apply to both condominiums and planned developments.

The foreclosure threshold is the central operational limit. Under § 5720, for liens recorded on or after January 1, 2006, the association may not use judicial or non-judicial foreclosure to collect delinquent regular or special assessments unless the delinquent assessments — exclusive of accelerated assessments, late charges, fees, attorney fees, interest, and collection costs — equal or exceed $1,800, OR the assessments secured by the lien are more than 12 months delinquent.⁴ When the debt falls below $1,800 and the delinquency does not exceed 12 months, the association may not foreclose; it may still collect by a small claims action, by recording a lien and waiting until the threshold is met, or by any other method short of foreclosure.⁴ Under § 5655, the association must apply partial payments first to assessments; the Court of Appeal confirmed in Huntington Continental Townhouse Ass'n v. Miner that associations must accept partial payments and apply them under § 5655 even after recording a lien, which means an owner can keep the assessment balance below the foreclosure threshold by making partial payments.¹⁸

Fines and fees cannot support a foreclosure. A monetary penalty imposed as a disciplinary measure for failure to comply with the governing documents (other than late payments) may not be characterized or treated as an assessment that becomes a lien enforceable by sale under §§ 2924, 2924b, and 2924c.¹² An exception exists for charges to repair common area damaged by a member or a member's guests where the governing documents so provide, but ordinary disciplinary fines are not foreclosable.¹²

3D. Post-sale: redemption, deficiency, surplus, reinstatement

California gives a post-sale right of redemption after an association's non-judicial foreclosure — a feature that sets association foreclosures apart from ordinary California mortgage foreclosures. Under § 5715, a non-judicial foreclosure by an association to collect delinquent assessments is subject to a right of redemption, and the redemption period ends 90 days after the sale.¹⁰ Ordinary non-judicial (power of sale) foreclosures of deeds of trust in California carry no post-sale redemption, so this 90-day right is specific to association assessment foreclosures.¹⁰ The notice of sale must state that the property is being sold subject to the redemption right. After the sale, the trustee or levying officer must serve a notice of the right of redemption under Code of Civil Procedure § 729.050; failure to give the post-sale redemption notice can void the sale, as the Court of Appeal held in Multani v. Witkin & Neal.²¹ The foreclosed owner (or a successor in interest) may redeem; the redemption price is governed by Code of Civil Procedure § 729.060 and generally includes the sale price plus reasonable amounts for preservation of the property.²² After a judicial foreclosure, the redemption period runs three months if the sale proceeds satisfy the judgment, or one year if they do not, under Code of Civil Procedure § 729.030.²²

A deficiency judgment is available where the association proceeds by judicial foreclosure and obtains a money judgment; the association may also sue the owner directly for the debt, because nothing in the assessment-collection article prohibits that action.⁵ Non-judicial sales do not yield a deficiency judgment. Surplus sale proceeds — amounts exceeding the secured debt and costs of sale — are distributed under the general power-of-sale priority rules to junior lienholders in order of priority and then to the former owner. The owner may reinstate by paying the arrears before the sale; under the power-of-sale procedures incorporated by § 5710, the owner generally has the right to cure the default and stop the sale by paying the amounts due plus permitted costs up to five business days before the sale date.⁷

Section 4: Recent legislative and judicial activity

A. Recent Bills

No California bill chaptered in 2024, 2025, or 2026 amended the core assessment-collection or lien sections of the Davis-Stirling Act (§§ 5650–5740). The $1,800 foreclosure threshold (§ 5720) and the 30-day pre-lien notice (§ 5660) both retain their original 2012 enactment text (Stats. 2012, Ch. 180), with no subsequent amendment. The most consequential recent change touches the adjacent fining and discipline sections, which determine what can and cannot be folded into a collectible — and ultimately foreclosable — balance.

B. Recent Appellate Rulings

California's appellate courts are actively shaping how assessment lien procedures work in practice. Two rulings — one from 2025 and one that dates to 2013 but remains the controlling authority on notice compliance — reflect the courts' consistent approach: hold associations to exact procedural compliance, and extend existing statutes to cover HOA foreclosures wherever the law supports that reading.

C. Active Legislative Debates

The legislature amends Davis-Stirling frequently, and proposals affecting association finances continue to circulate in the 2025–2026 session, including measures addressing assessment caps and disclosure. As of this writing, none that have been chaptered amend the §§ 5650–5740 collection, lien-priority, or foreclosure mechanics.

Section 5: National positioning

California sits in the threshold-restricted tier of the national collections landscape, distinct from the super-priority tier. Super-priority states grant a priority portion ahead of the first mortgage: Nevada's nine-month super-lien under NRS 116.3116(2)(b) is the reference point, and Colorado grants a six-month super-lien under C.R.S. § 38-33.3-316(2)(b), one of several Uniform Common Interest Ownership Act states with a priority portion. California grants no such super-priority; instead it bars foreclosure below a dollar or time minimum — $1,800 or more than 12 months delinquent — as Arizona also does, though Arizona's planned-community floor was raised by SB 1494 (effective Sept. 26, 2025) to a delinquency of 18 months or longer or a total delinquent amount of $10,000 or more under Ariz. Rev. Stat. § 33-1807(A). Other states limit associations to judicial-only foreclosure, and a few have no assessment-collection statute at all, leaving collections to the CC&Rs. For a multi-state operator, the practical implication is clear: the collection sequence and foreclosure economics differ enough between states that a notice or process valid in one state can be defective, or even barred, in another. A pre-lien letter that satisfies California's § 5660 will not satisfy a super-priority state's distinct sequence. California's direction of travel is toward tightening owner protections — the 2025 fine cap and cure requirements make that plain — while the core collection thresholds have held steady since 2012.

Footnotes

1. Cal. Civ. Code §§ 5650–5740, Davis-Stirling Common Interest Development Act ↩
2. Cal. Civ. Code § 5675 (notice of delinquent assessment; lien arises on recording) ↩
3. Cal. Civ. Code § 5680 (lien priority dates from recording; declaration may subordinate) ↩
4. Cal. Civ. Code § 5720 ($1,800 or 12-month foreclosure threshold; below-threshold collection methods) ↩
5. Cal. Civ. Code § 5700 (enforcement by judicial or non-judicial sale after 30 days; action against owner permitted) ↩
6. Cal. Civ. Code § 5660 (30-day certified-mail pre-lien notice and required contents) ↩
7. Cal. Civ. Code § 5710 (trustee's sale under §§ 2924, 2924b, 2924c; notice of default served on owner) ↩
8. Cal. Civ. Code § 5665 (payment-plan request; board meeting within 45 days) ↩
9. Cal. Civ. Code § 5705 (board decision to foreclose; executive-session vote recorded in minutes; vote at least 30 days before sale) ↩
10. Cal. Civ. Code § 5715 (90-day post-sale right of redemption after non-judicial foreclosure) ↩
11. Cal. Civ. Code § 5650 (debt of owner; delinquency at 15 days; recoverable late charge, collection costs, attorney fees, and 12 percent interest) ↩
12. Cal. Civ. Code § 5725 (disciplinary monetary penalty may not be treated as a foreclosable assessment lien) ↩
13. Highland Greens Homeowners Ass'n v. De Guillen (In re De Guillen), 604 B.R. 826 (B.A.P. 9th Cir. 2019) ↩
14. Cal. Code Civ. Proc. § 337 (four-year limitations period for actions on a written instrument) ↩
15. Mashiri v. Epsten Grinnell & Howell, 845 F.3d 984 (9th Cir. 2017) ↩
16. Diamond v. Superior Court, 217 Cal.App.4th 1172 (2013) ↩
17. Cal. Civ. Code § 5670 (offer of dispute resolution before recording lien) ↩
18. Cal. Civ. Code § 5655 (payments applied first to assessments); Huntington Continental Townhouse Ass'n v. Miner, 230 Cal.App.4th 590 (2014) ↩
19. Cal. Civ. Code § 5673 (board decision to record lien; majority vote in open meeting recorded in minutes) ↩
20. Cal. Civ. Code § 5705 (offer of IDR/ADR before initiating foreclosure) ↩
21. Cal. Code Civ. Proc. § 729.050 (post-sale notice of right of redemption); Multani v. Witkin & Neal, 215 Cal.App.4th 1428 (2013) ↩
22. Cal. Code Civ. Proc. §§ 729.030, 729.060 (judicial-foreclosure redemption periods; redemption price) ↩
23. AB 130 (2025), amending Cal. Civ. Code §§ 5850, 5855 ↩
24. Bird Rock Home Mortgage, LLC v. Breaking Ground, LP, No. D084138 (Cal. Ct. App., 4th Dist., Div. One, Sept. 16, 2025) ↩