New California Laws: What Homeowners Should Know

Starting January 1, 2027, several new California laws will give homeowners more flexibility and transparency, particularly those living in HOA-governed communities. Among the changes: fewer restrictions on air conditioning installations, electric appliances, and window replacements, and greater oversight on HOA fees and reserves.

If you live in a condominium or HOA community, these are worthwhile changes to understand as you plan future home improvements and evaluate your association's policies.

1. AB 739: More transparency around HOA management fees (January 1, 2027)
   HOA boards will be required to review a statement of fees charged by their management company annually. Those fee statements will also become part of the association's official records.
   
   Why homeowners should care: This gives homeowners and board members better visibility into what their HOA is paying its management company and creates another layer of financial accountability.
   
   

2. AB 1684: More flexibility to install air conditioning (January 1, 2027)
   HOAs will no longer be able to prohibit or restrict homeowners from installing, upgrading, replacing, or using compliant cooling systems, including air conditioning, heat pumps, and other cooling technologies.
   
   Why homeowners should care: This is particularly relevant in older California condos and communities where HOAs have historically restricted window units or other cooling installations. Systems must still comply with applicable building codes and permitting requirements. HOAs can retain certain responsibilities and protections when installations affect common areas.
   
   

3. SB 222: Fewer restrictions on switching from gas to electric (January 1, 2027)
   HOA rules and deed restrictions will no longer be able to prevent homeowners from replacing gas-burning appliances with compliant electric alternatives. The law also protects the installation and use of residential heat-pump water heaters and heat-pump HVAC systems.
   
   Why homeowners should care: Owners in HOA communities will have more flexibility when upgrading water heaters and heating and cooling systems, without running into certain HOA restrictions.
   
   

4. SB 908: Greater flexibility for energy-efficient window replacements  (January 1, 2027)
   HOAs cannot prohibit or impose certain restrictions on homeowners replacing windows that comply with California's energy code. Associations can still impose reasonable restrictions, including limited aesthetic requirements.
   
   Why homeowners should care: This could make it easier to replace older windows with more energy-efficient options, particularly in condominium communities.
   
   

5. AB 2050: Stronger long-term HOA reserve funding requirements (January 1, 2032)
   HOAs will have to plan reserve contributions using a 30-year projection, maintain minimum funding levels, and address projected reserve shortfalls. Certain associations facing projected deficits will have additional funding requirements, potentially including special assessments.
   
   Why homeowners should care: This could have a meaningful impact on HOA budgets, monthly dues, and special assessments over time. If you're interested in purchasing a condo and living there for at least 5 years, it is even more important to look into the association's financial health. 

All three bills were enacted in November 2026 and several take effect in January 2027. Whether you're buying into an HOA, currently own a condominium, or considering home improvements, these new provisions are worth paying attention to. For more detail visit the California Department of Real Estate's 2026 Bill Education page.