CAL.Regulation
California requires HOAs to fund reserves at levels keeping 30-year balances non-negative
Governor Gavin Newsom signed AB 2050 on September 29, 2026. Beginning January 1, 2032, common interest development reserve studies must state the minimum reserve contribution that keeps the projected reserve balance from falling below zero over 30 years, and associations must fund at least that level each year. If the balance is projected to fall below zero, the association must transfer 15% of its gross annual budget to reserves or levy a special assessment.
Enrolled text (California Legislative Information) → · Office of the Governor
Key points
- From 2032, HOA reserve studies must show the minimum contribution keeping 30-year balances non-negative.California Legislative Information
- Associations must fund at least that level each year.California Legislative Information
- Shortfalls trigger a 15%-of-budget reserve transfer or a special assessment.California Legislative Information
- Chapter 796, Statutes of 2026, amends, repeals and adds Civil Code section 5550 and adds section 5552.California Legislative Information
Sources2 articles across 2 outlets
California Legislative Information
Office of the Governor