AMENDED IN SENATE AUGUST 21, 2026

AMENDED IN SENATE JUNE 29, 2026

AMENDED IN SENATE JUNE 18, 2026

AMENDED IN ASSEMBLY MARCH 19, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

95

Introduced by Assembly Members Blanca Rubio and Lowenthal

(Coauthors: Assembly Members Kalra and Pacheco)

February 20, 2026

An act to amend Sections 5655 and 5690 of, and to add Section 4755 to, the Civil Code, relating to common interest developments.

Vote: majority   Appropriation: no   Fiscal committee: no   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law, the Davis-Stirling Common Interest Development Act, governs the management and operation of common interest developments. Existing law limits the authority of the governing documents, as defined, to regulate the use of a member’s separate interest.

This bill would prohibit the governing documents from imposing restrictions on a member’s use of public streets, except as specified.

Existing law requires that a common interest development be managed by an association and requires that the association levy assessments to fulfill its obligations. Existing law provides that assessments of the association, late charges, reasonable costs of collection, attorney’s fees, and interest, as specified, are a debt of a member at the time the assessment or other sums are levied. Existing law requires that an association provide a member making a payment a receipt, upon request, that indicates the date of payment and the person who received it and to provide a mailing address for overnight payment of assessments in the annual statement.

This bill would require the association to notify the members through individual notice by either electronic delivery or first-class mail, evidenced by a certificate of mailing, as specified, if the person or entity authorized to receive payment of assessments on behalf of the association changes, within 60 days of the change. The bill would require the association, if a member fails to make the next 2 consecutive assessment payments following the individual notice, to send a notice by certified mail with return receipt requested to that member, except as specified. The bill would require the association to maintain records confirming that individual notices were distributed and to make reasonable effort to post a physical copy of the notice in the association’s common areas. distributed.

Existing law provides that assessments, including the costs of collection, late charges, and interest, are a lien on the member’s separate interest when the association records a notice of delinquent assessment and follows a specified process, including providing the owner of record a specified notice, at least 30 days prior to recording a lien upon the separate interest. Existing law requires that an association that fails to comply with these procedures recommence the required notice process, prior to recording a lien, and bear the cost of recommencing the notice process.

The bill would make the association liable to the member for specified fees if the association fails to comply with these procedures. If the association fails to comply with these procedures procedures, as specified, and the failure is the 3rd failure within a 5-year period, the bill would make the board liable to the member for a civil penalty of $1,000 and would require it to notify members by general notice of its failure to comply.

The people of the State of California do enact as follows:

SECTION 1.

Section 4755 is added to the Civil Code, to read:

4755.

Except for restrictions to enforce public health and safety standards and requirements imposed by local authorities, the governing documents shall not impose restrictions on a member’s use of public streets.

SEC. 2.

Section 5655 of the Civil Code is amended to read:

5655.

(a) Any payments made by the owner of a separate interest toward a debt described in subdivision (a) of Section 5650 shall first be applied to the assessments owed, and, only after the assessments owed are paid in full shall the payments be applied to the fees and costs of collection, attorney’s fees, late charges, or interest.

(b) When an owner makes a payment, the owner may request a receipt and the association shall provide it. The receipt shall indicate the date of payment and the person who received it.

(c) The association shall provide a mailing address for overnight payment of assessments. The address shall be provided in the annual policy statement.

(d) If the person or entity authorized to receive payments of assessment on behalf of the association changes, the association shall notify members through individual notice by one of the following methods within 60 days of the change:

(1) Electronic delivery for any member who has opted into that method of delivery for receiving general notices from the association.

(2) First-class mail, evidenced by a certificate of mailing, for any member who has not opted into electronic delivery of notices from the association.

(2) If the association sent the individual notice pursuant to paragraph (1) of subdivision (d), and the member affirmatively responded to the notice, then the association is not required to send a second notice via certified mail with return receipt requested, pursuant to paragraph (1) of this subdivision. (1).

(f) The association shall maintain records confirming that individual notices were distributed, distributed pursuant to subdivisions (d) and (e). (e) for five years. If a member requests proof of the delivery, that the association distributed a notice to the member, the association shall provide it at no charge to the member. proof for the notice applicable to the requesting member at no charge.

SEC. 3.

Section 5690 of the Civil Code is amended to read:

5690.

(a) An association that fails to comply with the procedures set forth in this article shall, prior to recording a lien, recommence the required notice process. Any costs associated with recommencing the notice process shall be borne by the association and not by the owner of a separate interest.

(b) If an association fails to comply with the procedures set forth in this article, the association shall be liable to the owner of the separate interest for the reconveyance fee and any costs of the owner of the separate interest associated with the association’s failure to comply with the procedures set forth in this article.

(c) (1) If the association fails to comply with the procedures set forth in this article, subdivision (e) of Section 5655, and the failure is the third failure to comply with the procedures set forth in this article that subdivision within a five-year period, the board shall be liable to the owner of the separate interest for a civil penalty of one thousand dollars ($1,000).

(2) If a civil penalty is imposed pursuant to paragraph (1), the association shall notify members by general notice of the board’s failure to comply with the procedures set forth in this article.