Senate committee advances HOA transparency bill amid industry pushback

Senator Menjubar presented SB 1007, a measure aimed at increasing transparency in homeowners associations and limiting the size of regular annual assessment increases. The bill would require a simplified visual breakdown of HOA budgets for homeowners and propose capping regular assessment increases at an inflation‑based index or a differently negotiated ceiling.

Consumer advocates and homeowner‑rights groups testified in favor, citing examples in which assessment hikes (up to the statutory 20% ceiling) and surprise special assessments have burdened older or lower‑income homeowners. "Even regular assessments raised 20% will double in 4 years and triple in 5," Marjorie Murray of the Center for California Homeowner Association Law told the committee, urging indexing to CPI or construction cost measures.

Industry groups — including the California Association of Community Managers and the Community Associations Institute — opposed the bill in its current form, arguing that capping increases could reduce reserve funding, delay maintenance, and force larger special assessments later. Jeremy Wilson said the bill "takes away the board's ability to plan and spread cost across multiple years for members" and warned that voter apathy makes reliance on member votes for higher assessments unreliable.

Committee members pressed the author on trade‑offs: ensuring HOAs can cover insurance and large capital repairs, how special or emergency assessments would function, and which inflation measure should apply. The author pledged additional negotiations and amendments before the next committee, saying he seeks a balance that protects homeowners while keeping associations solvent.

The committee voted to pass SB 1007 to the Judiciary Committee on an 8‑2 recorded vote.