Davis-Stirling Act › CHAPTER 7. Finances [5500 - 5580] › ARTICLE 1. Accounting [5500 - 5502]

(Amended by Stats. 2021, Ch. 270, Sec. 2. (AB 1101) Effective January 1, 2022.)
Text current as of July 17, 2026, per California Legislative Information.

(a) Notwithstanding any other law, transfers shall not be authorized from the association’s reserve or operating accounts without prior written approval from the board of the association unless the amount of the transfer is less than the following:

(1) The lesser of five thousand dollars ($5,000) or 5 percent of the estimated income in the annual operating budget, for associations with 50 or less separate interests.

(2) The lesser of ten thousand dollars ($10,000) or 5 percent of the estimated income in the annual operating budget, for associations with 51 or more separate interests.

(b) This section applies in addition to any other applicable requirements of this part.

The text of the Davis-Stirling Common Interest Development Act is provided for reference and convenience only, from the California Legislative Information website (leginfo.legislature.ca.gov). It is not legal advice, and the official version of California statutes is published by the state. Statutes may have been amended after the “current as of” date shown above. Consult counsel regarding the application of any statute to your association.