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California HOA Assessment Increase Notice Letter

Write the notice each owner gets before a regular assessment increase takes effect. The builder checks the 30 to 60 day delivery window and the 20 percent limit, then gives you a Word letter to review with your attorney.

Build the Letter Read the California assessment rules

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Build Your Increase Notice

2The increase

Enter one home’s regular assessment before and after the increase.

Current regular assessment

New regular assessment

Billed

First due date at the new amount Required by law

Fiscal year (optional)

Who approved it?

Date of the member vote

The 20 percent limit applies to the association’s regular assessment as a whole. If dues differ by home, enter the totals (optional).

Total regular assessments, last fiscal year

Total regular assessments, new fiscal year

The board distributed the annual budget report for this fiscal year as section 5300 requires Required by law

Date the budget report went out (optional) Good practice

Which emergency? Required by lawSection 5610 lists three. The usual limits don’t apply to an increase needed for one of them.

Date the board adopted its resolution

The court order

The threat or hazardous condition and when it was discovered

Finding: why the extraordinary expense is necessary

Finding: why it wasn’t or couldn’t reasonably have been foreseen in the budget Required by law

Why the increase is needed (optional) Good practice

Everything you enter stays in your browser and is saved there so you can come back later. Nothing is sent to How2HOA. This builder follows California Civil Code sections 4040, 5300, 5605, 5610 and 5615, reviewed November 2026. It doesn’t check your budget or your governing documents, which may set stricter limits. This tool is general educational information, not legal advice. Have your association’s attorney review the letter before you send it.

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What the law requires

The Rules Behind the Notice

An increase starts with the budget and ends with a letter to every owner.

Each requirement comes from a specific section of the Civil Code. Here’s what each one says.

The notice. The association gives each owner individual notice of any increase in regular or special assessments not less than 30 nor more than 60 days before the increased assessment is due (section 5615).
Individual delivery. That means the delivery method the owner chose for association notices, or mail if the owner hasn’t chosen one (section 4040).
The budget report. The board can’t impose an annual increase in regular assessments unless it met the annual budget report requirements for that fiscal year, or the members approve (sections 5300 and 5605).
The 20 percent limit. Without member approval, the board can’t impose a regular assessment more than 20 percent greater than the regular assessment for the preceding fiscal year (section 5605).
Member approval. Above the limit, the increase needs approval of a majority of a quorum of the members, and quorum means more than 50 percent of the members (section 5605).
Emergencies. The limit doesn’t apply to an increase needed for a court-ordered expense, a threat to health or safety or another hazardous condition discovered on the property or an extraordinary repair the board couldn’t reasonably have foreseen. The last one needs a board resolution with written findings, sent with the notice (section 5610).
Only what’s needed. An assessment can’t exceed the amount needed to cover the costs it’s levied for (section 5600).
Newer associations. If the original declaration was recorded on or after January 1, 2025, section 5605 adds a separate limit for deed-restricted affordable housing units. This builder doesn’t check that limit.

For the full picture, see California HOA Assessments and Collections.

How to use it

Sending the Notice

A clear letter heads off most questions before they reach the board.

Work from the budget to the mailbox.

Check the limits first. The Dues and Special Assessment Calculator tests the 20 percent limit with your association totals.
Enter the old and new amounts. Use one home’s assessment, or leave the owner fields blank for a mail merge.
Pick the first due date. The builder shows the 30 to 60 day window for delivery.
Explain the reason. A sentence or two on insurance, reserves or other costs answers the first question every owner asks.
Review and send. Have your attorney review the letter, remove the board file page and keep proof of delivery.

Explaining the reason, showing the dollar and percentage change and saying how to update autopay are good practice, not legal requirements. The builder labels each one.

Sources

The Law Behind This Page

Every rule in this builder comes from the official text. Each link below opens it in a new tab.

Civil Code sections: 4040 · 5300 · 5600 · 5605 · 5610 · 5615

Keep going

Related Resources

California HOA Assessments and Collections

The rules for dues, special assessments and collections.

Dues and Special Assessment Calculator

Check the 20 percent and 5 percent limits.

How Much Can an HOA Raise Dues?

The 20 percent limit, step by step.

Special Assessment Notice Letter

Standard or emergency, with the board’s findings.

All Board Tools

Checklists, calendars and templates for HOA boards.

California HOA Board Toolkit

The board templates in one free Word file.

Get help

Want Help With Budgets and Assessments?

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Last reviewed November 2, 2026. Sources: Civil Code sections 4040, 5300, 5600, 5605, 5610 and 5615. By the How2HOA Editorial Team. This tool is general educational information, not legal advice. Check with your association’s attorney about your situation.