2026-09-09 · California · Legislation · Did not pass

California homeowners associations may still raise regular assessments by up to 20 percent a year without a member vote. The bill that would have cut that to 8 percent passed the Senate on the closest vote of any common interest development measure this session, and then never received a hearing in the Assembly.¹

SB 1007's last recorded action is dated June 24, 2026: “June 24 set for first hearing canceled at the request of author.” It missed the deadline, and the 2025–2026 session has since adjourned.

The 8 percent cap

Authored by Senator Caroline Menjivar with Senators Lena Gonzalez and Tim Grayson as coauthors, SB 1007 would have amended Civil Code sections 5300, 5320 and 5605 and added section 5860.²

The headline provision would have cut the cap on regular assessment increases without member approval from 20 percent to 8 percent greater than the preceding fiscal year's regular assessment. Annual increases would also have been conditioned on the board complying with new budget report disclosure requirements.

The budget disclosures

Section 5300 would have added to the annual budget report a comparison of anticipated versus actual expenditures for the prior fiscal year, broken out by major category — reserves, management, utilities, landscaping, maintenance and insurance — plus a statement of the compensation of a management company where one is engaged.

Section 5320 would have carried both requirements into the summary distributed to members where an association distributes a summary rather than the full report.

And an evidence rule before fining

New section 5860 would have required that, before imposing a monetary penalty, an association make any physical evidence used to determine the violation available to the member at least five business days before the hearing — expressly including digital metadata such as the time, date and location attached to photographs and recordings.

How it died

The Senate passed it 24–13 on May 27, 2026. Six Assembly and Senate Democrats joined Republicans in opposition. Senator Catherine Blakespear argued that energy and insurance costs, not board self-dealing, drive assessment increases.

The bill was received in the Assembly the same day and referred on June 4 to three committees — Housing and Community Development, Judiciary, and Appropriations. It returned from committee with author's amendments on June 15, and the June 24 hearing was cancelled at the author's request. Nothing followed.³

1. SB 1007, California Legislature — bill status (common interest developments: annual reports: assessments: discipline) ↩
2. SB 1007, California Legislature — complete bill history, confirming no action after the cancelled June 24, 2026 hearing ↩
3. SB 1007, California Legislature — bill text and Legislative Counsel's Digest (amending Civil Code §§ 5300, 5320, 5605; adding § 5860) ↩
4. CalMatters, 'California bill would cap HOA fee increases' (June 2026) — floor vote detail and opposition ↩