Condo and homeowner associations must fund reserves at a minimum level each year
HOAs must fund reserves each year at least at the minimum their reserve study sets to stay above zero for 30 years. If a shortfall is projected, they must move 15% of the budget to reserves yearly, or levy a special assessment if needed.
Who it affects
Condo, townhome and other common interest development associations and owners
When
This law takes effect on January 1, 2027; the changes described here start on January 1, 2032.
- : Signed into law
- : Law takes effect
- : The changes described here start to apply: associations must fund reserves at the study's minimum level
Official text
California AB 2050: Common interest developments: reserve accounts.
On California Legislative Information. The official text is what counts; read it before you act.
Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.