AB 2439California Assembly·2025-2026 Regular Session
Common Interest Developments: governing documents: assessments.
Summary
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. 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, 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 June 29 amendment to AB 2439 makes three substantive changes: it relaxes the notification method for assessment payment recipient changes from certified mail to electronic delivery or first-class mail, adds an exemption from sending a second notice if a member affirmatively responds to the first, and significantly narrows the $1,000 civil penalty so it only applies on the third compliance failure within five years rather than on any single failure.
Scope change
The bill's scope is slightly broadened to include 'streets' alongside 'roads' in the prohibition on HOA restrictions, and the enforcement mechanism is narrowed so that the civil penalty only triggers after repeated (third) failures within five years rather than on a single instance.
REQUIREMENT
Section 5655(d) changes the notification method when the person authorized to receive assessment payments changes. The old version required certified mail with return receipt requested. The new version allows individual notice by either electronic delivery (for members who opted in) or first-class mail evidenced by a certificate of mailing (for others).
ELIGIBILITY
A new Section 5655(e)(2) creates an exemption: if the association sent the initial individual notice and the member affirmatively responded to it, the association is not required to send a second certified mail notice even if the member then fails to pay two consecutive assessments.
ENFORCEMENT
Section 5690(b) changes who is liable for reconveyance fees and costs from the board to the association. The $1,000 civil penalty is moved to a new subsection (c) and now only applies if the failure is the third within a five-year period, rather than on any single failure. If the penalty is triggered, the association must also notify members by general notice of the board's noncompliance.
SCOPE
Section 4755 expands the prohibition on governing document restrictions from 'public roads' to 'public roads, streets,' broadening the types of public thoroughfares covered.
08/21/26 - Amended Senate→AB2439·1 edit
MINOR
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TECHNICAL
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The August 21 amendment makes several targeted changes to AB 2439: it narrows the road-use prohibition from 'public roads' to 'public streets,' adds a new general notice requirement when the assessment payment recipient changes, specifies a five-year record retention period, shifts lien-related liability from the board to the association as an entity, and narrows the $1,000 civil penalty trigger to only apply for failures related to the certified mail notice requirement in subdivision (e) of Section 5655.
SCOPE
Changed 'public roads' to 'public streets' in both the summary and new Civil Code Section 4755, narrowing the prohibition on governing document restrictions to only public streets rather than all public roads.
REQUIREMENT
Added a new subdivision (g) to Section 5655 requiring the association to provide general notice of any change in the person or entity authorized to receive assessment payments, using methods described in paragraph (3) of subdivision (a) of Section 4045.
Added a five-year retention period for records confirming that individual notices were distributed under subdivisions (d) and (e) of Section 5655.
ENFORCEMENT
Changed liability in Section 5690(b) from 'the board' to 'the association' for the reconveyance fee and costs associated with procedural failures, shifting responsibility from individual board members to the association as an entity.
Narrowed the $1,000 civil penalty in Section 5690(c)(1) so it only applies when the third failure within a five-year period relates specifically to subdivision (e) of Section 5655 (the certified mail notice requirement), rather than any procedural failure under the article.
The Senate amended AB 2439 to remove a nonsubstantive amendment to Section 5650 (interest rate provisions on delinquent assessments) and significantly reworked the notice requirements in Section 5655(d). Instead of requiring certified mail for all members when the payment recipient changes, the bill now uses a tiered system: electronic delivery for opted-in members, first-class mail with certificate of mailing for others, and certified mail only as a second notice if a member misses two consecutive payments after the initial notice. New recordkeeping and posting requirements were also added.
Scope change
The bill's scope narrowed slightly by removing the Section 5650 amendment (interest rate provisions), but expanded in practice through new recordkeeping, proof-of-delivery, and common-area posting requirements that create additional compliance obligations for associations.
SCOPE
The entire amendment to Section 5650 of the Civil Code was removed. This section dealt with interest rates (capped at 12 percent), late charges, and collection costs on delinquent assessments. The Senate determined this change was nonsubstantive and dropped it from the bill.
REQUIREMENT
Section 5655(d) was restructured from a single certified-mail requirement into a tiered notice system: electronic delivery for members who opted in, first-class mail with certificate of mailing for others, and certified mail with return receipt requested only as a second notice if the member fails to pay two consecutive assessments after the initial individual notice.
New subdivision (f) requires the association to maintain records confirming that individual notices were distributed and to provide proof of delivery to any member who requests it at no charge.
New subdivision (g) requires the association to make a reasonable effort to post a physical copy of the notice in the association's common areas.
The amended version of AB 2439 significantly expands the bill's scope from a single amendment to Section 5650 (assessment debt provisions) to three new sections addressing public road restrictions, payment application and receipt requirements, and penalties for lien procedure non-compliance. The most notable additions are a prohibition on HOA governing documents restricting members' use of public roads, a requirement that payments be applied to assessments before fees and penalties, and a $1,000 civil penalty plus reconveyance costs if an association fails to follow proper lien recording procedures.
SCOPE
New Section 4755 added to the Civil Code prohibiting governing documents from imposing restrictions on a member's use of public roads, with an exception for restrictions enforcing public health and safety standards imposed by local authorities.
The bill's scope expanded from amending only Section 5650 to amending Sections 5655 and 5690 and adding Section 4755, covering public road restrictions, payment handling, and lien compliance penalties in addition to the original assessment debt provisions.
REQUIREMENT
New Section 5655(a) requires that payments made by an owner be applied first to assessments owed, and only after assessments are paid in full may payments be applied to fees, costs of collection, attorney's fees, late charges, or interest.
New Section 5655(b) requires associations to provide a receipt upon request when an owner makes a payment, indicating the date of payment and the person who received it.
New Section 5655(c) requires associations to provide a mailing address for overnight payment of assessments in the annual policy statement.
TIMELINE
New Section 5655(d) requires associations to notify members by certified mail, return receipt requested, of any change in the person authorized to receive assessment payments within 60 days of the change.
ENFORCEMENT
New Section 5690(b) makes the association board liable to the owner for both the reconveyance fee and associated costs, plus a civil penalty of $1,000, if the association fails to comply with lien recording procedures.
Floor votes · Senate Aug 27, 2026 · Assembly May 4, 2026
How they voted
32–5
Passed · 3 other
Total votes 40
Aug 27, 2026
D
Democratic30
30 Yea
100% Yea
R
Republican10
2 Yea5 Nay3
50% Nay
Your representatives
Vote distribution
All YeaAll NayMixedNo data
73–0
Passed · 6 other
Total votes 79
May 4, 2026
D
Democratic59
55 Yea4
93% Yea
R
Republican20
18 Yea2
90% Yea
Your representatives
Vote distribution
All YeaAll NayMixedNo data
Full legislative history
Actions timeline
Total actions
21
Key actions
9
Committee
6
Amendments
8
Aug 28, 2026
Lower · Passed
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.).
lower
Aug 27, 2026
Introduced
In Assembly. Concurrence in Senate amendments pending.
lower
Aug 27, 2026
Upper · Passed
Read third time. Passed. Ordered to the Assembly. (Ayes 32. Noes 5.).
upper
Aug 24, 2026
Reading-1
Read second time. Ordered to third reading.
upper
Aug 21, 2026
Upper · Passed
Read third time and amended. Ordered to second reading.
upper
Jun 29, 2026
Upper · Passed
Read second time and amended. Ordered to third reading.
upper
Jun 25, 2026
Introduced
From committee: Amend, and do pass as amended. (Ayes 10. Noes 0.) (June 23).
upper
Jun 18, 2026
Upper · Passed
Read second time and amended. Re-referred to Com. on JUD.
upper
Jun 17, 2026
Introduced
From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 8. Noes 1.) (June 16).
upper
May 13, 2026
Committee
Referred to Coms. on HOUSING and JUD.
upper
May 5, 2026
Reading-1
In Senate. Read first time. To Com. on RLS. for assignment.
upper
May 4, 2026
Lower · Passed
Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 4912.)
lower
Apr 29, 2026
Reading-1
Read second time. Ordered to third reading.
lower
Apr 28, 2026
Lower · Passed
From committee: Do pass. (Ayes 12. Noes 0.) (April 28).
lower
Apr 28, 2026
Other
Coauthors revised.
lower
Apr 23, 2026
Lower · Passed
From committee: Do pass and re-refer to Com. on JUD. (Ayes 12. Noes 0.) (April 22). Re-referred to Com. on JUD.
lower
Mar 23, 2026
Committee
Re-referred to Com. on H. & C.D.
lower
Mar 19, 2026
Introduced
From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.