Failed Bill AB21

AB 21: Failed HOA Transparency Bill Could Have Cost Taxpayers More Than It Helped

A recent attempt to introduce more transparency into California’s 50,000 homeowners associations (HOAs) has failed to move forward—despite bipartisan support. Assembly Bill 21 (AB 21), introduced by Republican Assemblymember Tri Ta, aimed to shine a light on the operations and decision-making of HOA boards. However, the bill failed to advance out of committee, in part due to growing concerns about the unintended costs to taxpayers.

What AB 21 Proposed

AB 21 sought to require HOAs to disclose more information publicly, including board meeting agendas, financial records, and disciplinary actions taken against homeowners. The goal was to ensure that HOA members—who often feel left in the dark—could more easily access information and hold their boards accountable.

In theory, the bill was about good governance and protecting homeowners. But the practical implementation raised red flags, particularly around administrative costs and who would ultimately bear them.

The Hidden Cost to Taxpayers

While the bill targeted private homeowners associations, it included provisions that would have required additional oversight and reporting to state agencies. This added a new layer of bureaucracy that many argued would create more problems than it solved.

Critics pointed out that the cost of developing, managing, and auditing these new transparency mechanisms would fall to government agencies that are already underfunded. For example:

• The Department of Real Estate or a newly tasked agency might need to create a system for collecting and maintaining public HOA records.

• Additional staff and infrastructure would be required to manage and respond to inquiries and complaints related to non-compliance.

• Legal costs could rise as HOAs and homeowners dispute new transparency-related mandates.

In effect, a bill intended to make HOAs more accountable to their members could have placed a financial burden on all Californians—regardless of whether they live in an HOA.

Bipartisan Support, but Not Enough

The bill did enjoy support across party lines. Legislators acknowledged the need for reform in the HOA system, especially when it comes to transparency and owner rights. However, that support wasn’t enough to push it through committee. Lawmakers appeared reluctant to move forward with legislation that could create a costly new government function with limited benefit to the broader public.

What This Means for HOAs

For now, HOAs will continue to be governed under existing laws, such as the Davis-Stirling Act, which already mandates certain disclosures and homeowner rights. However, the conversation around HOA reform is far from over. AB 21 may have failed this time, but it highlighted the growing public interest in how these private governments operate.

Moving Forward

The failure of AB 21 serves as a reminder that even well-intentioned legislation must be carefully balanced against cost and impact. Lawmakers and advocacy groups may now look to more targeted reforms that improve transparency within HOAs without expanding state oversight or raising taxpayer costs.