Author:HGCT

Senate Bill 1007 will be heard by the California Assembly Housing & Community Development Committee on June 24, 2026

This legislation could have significant impacts on community associations and their ability to govern, maintain common areas, and fund reserves.

Now is the time for community association board members, homeowners, and industry professionals to make their voices heard.

If your Assembly Member is not a member of the Assembly Housing & Community Development Committee, we encourage you to contact your Assembly Member and the Committee directly. Ask your Assembly Member to convey your opposition to SB 1007 to Committee members, and respectfully urge Committee members to vote against the bill.

If your Assembly Member serves on the Assembly Housing & Community Development Committee, we encourage you to contact them immediately and respectfully urge them to oppose SB 1007.

The following Assembly Members serve on the Committee:

~ Matt Haney (Chair)
~ Joe Patterson (Vice Chair)
~ Annamarie Ávila Farías
~ Jessica Caloza
~ Robert Garcia
~ Ash Kalra
~ Alex Lee
~ Sharon Quirk-Silva
~ Tri Ta
~ David Tangipa
~ Lori Wilson
~ Buffy Wicks

To determine which legislator represents your district, please visit the California Legislature’s “Find My Representative” tool and contact your Assembly Member before the June 24 hearing.

You may also participate in CAI’s advocacy campaign by visiting the Call-to-Action page and sharing the information with your communities, management companies, and fellow stakeholders: CAI Call to Action

Thank you for helping protect California’s community associations and the homeowners they serve.

Proposed Legislation Could Significantly Impact HOA Assessments and Financial Stability Throughout California

The California Legislature is currently considering Senate Bill (“SB”) 1007, proposed legislation that would substantially limit the ability of a community association’s board to increase annual (aka regular) assessments.

Current California law, which has been in effect for decades, permits associations to increase regular assessments by up to 20% per year without membership approval. Under the proposed legislation, associations would instead be prohibited from increasing regular assessments above the prior year’s assessments adjusted only for inflation, unless approved by a vote of the membership. The manner in which the rate of inflation is determined is not addressed in this legislation, which will lead to great confusion.

SB 1007 has been presented as a consumer protection measure intended to increase transparency and limit assessment increases, thereby making housing more affordable. However, if this bill becomes law, it will harm the very consumers it is meant to protect.

In recent years, associations throughout California have experienced substantial increases in property insurance premiums, utility and water costs, reserve funding obligations, construction and material costs, landscaping and maintenance costs, and compliance-related expenses, including inspection and safety mandates imposed by law, just to name a few. These costs have risen much faster than ordinary inflation.

If enacted, SB 1007 will result in deferred maintenance and repairs, meaning the buildings in which people are living will deteriorate and become a safety risk. Deferred maintenance is not a new problem – it has existed for years and is the reason community associations are subject to laws regarding inspection and safety. SB 1007 will not make the problem go away; it will make it far worse because it will take away associations’ ability to responsibly and accurately budget for expenses. Associations are legally required, by Civil Code section 5600, to levy assessments sufficient to perform the association’s obligations under the governing documents and the law. This legislation will prevent associations from doing so.

SB 1007, if enacted, will also lead to increased special assessments, more emergency assessments, more difficult and costly member voting processes, and reduced access to federally-backed loans. In other words, it will make housing less affordable rather than more affordable.

How to Help!

Call and email your California State Senator and ask them to oppose SB 1007!

CAI-CLAC’s Find Your Elected Officials and Action Center Links

1. Email Your State Senator

2. Telephone Your State Senator