Excessive Late Fees
HOA charging late fees exceeding 10% of the delinquent assessment or imposing late fees before the payment is actually delinquent under Civil Code 5650.
Wrongful Liens
HOA recording liens without proper pre-lien notice, IDR offer, or for amounts below the statutory threshold under Civil Code 5660.
Payment Plan Denials
HOA refusing to offer payment plans for delinquent assessments as required by Civil Code 5665, or imposing unreasonable terms.
Special Assessment Challenges
Challenging special assessments that weren't properly noticed, voted on, or exceed the statutory limits without member approval under Civil Code 5605.
Collection Abuse
HOA or collection agency violating debt collection laws, harassing owners, or misrepresenting amounts owed under Civil Code 5730 and the Rosenthal Act.
Foreclosure Defense
Fighting non-judicial foreclosure for assessment debt, ensuring HOA followed all required procedures under Civil Code 5700-5720.
California HOA Assessment Collection Laws
The Davis-Stirling Common Interest Development Act provides comprehensive protections for homeowners facing assessment collection. HOAs must follow strict procedures before imposing late fees, recording liens, or pursuing foreclosure.
Applicable Statutes
Civil Code 5650
Limits late fees to 10% of the delinquent assessment. Prohibits charging late fees until the assessment is actually delinquent (typically 15 days after due date).
Civil Code 5655
Requires HOAs to provide an itemized statement of charges upon owner request, including all fees, interest, and attorney's fees applied to the account.
Civil Code 5660
Pre-lien requirements: 30-day notice, IDR offer, and itemized statement before recording any lien. Liens cannot be recorded for amounts under $1,800.
Civil Code 5665
Requires HOAs to offer payment plans of at least 12 months for delinquent assessments when requested by the owner.
Civil Code 5670
Priority of payments: Owner payments must be applied first to assessments and only then to fees, unless the owner directs otherwise.
Civil Code 5730
Collection practices: HOAs and their agents must comply with state and federal debt collection laws, including the Rosenthal Fair Debt Collection Practices Act.
Late Fee Limitations
- 10% Maximum: Late fees cannot exceed 10% of the delinquent assessment amount
- No Compounding: Late fees cannot be charged on late fees (no compound interest)
- Grace Period: Most CC&Rs require 15-30 days before an assessment is considered delinquent
- Reasonable Interest: Interest on delinquent assessments cannot exceed 12% per year unless CC&Rs specify a lower rate
- Attorney's Fees: Must be reasonable and actually incurred—cannot be padded or estimated
Pre-Lien Notice Requirements
Before an HOA can record a lien against your property, it must follow strict notice requirements under Civil Code 5660:
Mandatory Pre-Lien Steps
- Step 1 - Itemized Statement: HOA must provide itemized statement of all charges
- Step 2 - IDR Offer: Must offer Internal Dispute Resolution (IDR) meeting
- Step 3 - 30-Day Notice: Must wait 30 days after mailing the pre-lien notice
- Step 4 - $1,800 Threshold: Cannot lien for amounts under $1,800 (or 12 months of assessments)
- Step 5 - Board Decision: Board must approve lien recording by majority vote
What the Pre-Lien Notice Must Include
- Itemized statement of charges owed
- Description of the property
- Name of the record owner
- Statement that the HOA intends to record a lien
- Offer to meet and confer (IDR)
- Notice of right to request a payment plan
- Contact information for the HOA or management company
Payment Plan Rights
Statutory Payment Plan Requirements (CC 5665)
California law gives homeowners significant rights when it comes to payment plans for delinquent assessments:
- 12-Month Minimum: The HOA must offer a plan allowing you to pay over at least 12 months
- Must Request: You must request the payment plan in writing
- Reasonable Terms: HOA cannot impose unreasonable conditions or require unreasonable down payments
- No Acceleration: Missing one payment cannot automatically accelerate the entire balance (reasonable cure period required)
- Interest Limited: Interest during the plan cannot exceed the legal rate
What If the HOA Refuses?
If the HOA denies your payment plan request or offers unreasonable terms, you may:
- Demand IDR to negotiate reasonable terms
- File for ADR (mediation/arbitration)
- Challenge any subsequent lien as improper
- Sue for violation of Civil Code 5665
- Seek attorney's fees and costs if you prevail
Sample Assessment Dispute Demand Letter
[Your Name]
[Your Address]
[City, State ZIP]
[Date]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
[HOA Name]
[Management Company, if applicable]
[Address]
[City, State ZIP]
Re: Dispute of Assessment Charges and Demand for Compliance with Civil Code 5650-5670
Dear [HOA Board/Property Manager]:
I write to formally dispute assessment charges applied to my account and demand compliance with California Civil Code sections 5650-5670 (Davis-Stirling Common Interest Development Act).
Disputed Charges: My account currently shows a balance of $[amount], which includes the following improper charges: [Describe specific disputed charges, e.g., "late fees totaling $X that exceed the 10% maximum permitted under Civil Code 5650"; "interest charges that were applied before the assessment was delinquent"; "attorney's fees that were not actually incurred"].
Legal Violations: The charges on my account violate California law as follows: [Cite specific violations, e.g., "Civil Code 5650 limits late fees to 10% of the delinquent assessment, yet I was charged $X on a $Y assessment"; "Civil Code 5655 requires an itemized statement upon request, which I requested on [date] but have not received"].
Demand: Pursuant to Civil Code 5655, I demand: (1) An itemized statement of all charges on my account within 10 days; (2) Immediate removal of all improper late fees and interest charges; (3) An offer to meet and confer through IDR as required by Civil Code 5660; (4) A payment plan for any legitimately owed amounts as required by Civil Code 5665.
I further demand that the Association take no collection action, record no lien, and assess no additional fees until this dispute is resolved and the Association has complied with all pre-lien requirements of Civil Code 5660.
Failure to comply with these statutory requirements may result in liability for actual damages, statutory penalties, and attorney's fees. I reserve all rights under the Davis-Stirling Act and other applicable laws.
Sincerely,
[Your Signature]
[Your Name]
Sample Payment Plan Request Letter
[Your Name]
[Your Address]
[City, State ZIP]
[Date]
[HOA Name]
[Management Company, if applicable]
[Address]
[City, State ZIP]
Re: Request for Payment Plan Pursuant to Civil Code 5665
Dear [HOA Board/Property Manager]:
Pursuant to California Civil Code 5665, I am writing to formally request a payment plan for the delinquent assessments on my account.
I understand that my account currently shows a balance of approximately $[amount]. While I [dispute certain charges as outlined in my letter dated X / acknowledge this balance], I am requesting a payment plan to resolve this matter.
Under Civil Code 5665, the Association is required to provide a payment plan that allows me to satisfy the debt over a period of at least 12 months. I am proposing the following plan: [Propose specific terms, e.g., "monthly payments of $X beginning on [date], which would satisfy the balance over 12 months"].
I request that the Association: (1) Accept this payment plan proposal, or provide a counter-proposal within 14 days; (2) Suspend any collection activity while this request is pending; (3) Refrain from recording any lien while we negotiate in good faith.
Please confirm receipt of this request and provide a written response within 14 days as required by law.
Sincerely,
[Your Signature]
[Your Name]
Challenging Improper Liens
Grounds for Challenging a Lien
- Procedural Defects: HOA failed to provide proper pre-lien notice, IDR offer, or 30-day waiting period
- Below Threshold: Lien recorded for amount under $1,800 (or less than 12 months of regular assessments)
- No Board Approval: Board did not vote to approve lien recording as required
- Improper Charges: Lien includes charges that violate Civil Code 5650 (excessive late fees, improper interest)
- Payment Plan Denied: HOA refused to offer required payment plan before recording lien
Remedies for Improper Liens
- Demand immediate release of the lien
- Sue to quiet title and remove the lien
- Recover actual damages caused by the improper lien
- Recover attorney's fees as the prevailing party
- In egregious cases, seek punitive damages for bad faith conduct
Disputing HOA Assessment Charges?
I handle California HOA assessment disputes—from challenging excessive fees to fighting wrongful liens and foreclosures. Get help protecting your home and your rights.