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HomeCivil CodeDiv. 4Pt. 5.3Ch. 7Art. 1§ 6804 Assessment Funds Exemption

§ 6804 Assessment Funds Exemption

Civil Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 6804 Assessment Funds Exemption

Key Takeaways

  • •Money collected by a group (like a homeowners association) for important things like utilities and insurance can't be taken by someone the group owes money to.
  • •A court decides what's 'important' to protect this money for.
  • •This protection doesn't apply if the group agreed to owe money for something (like a loan), owes taxes to the state, or owes money for work or supplies done for shared areas.

Example

A homeowners association (HOA) collects monthly fees from residents to pay for water, electricity, and insurance for shared spaces like the pool and clubhouse.

If the HOA owes money to someone and that person tries to take the money meant for water and electricity bills, the law says they can't take it because those are essential services. But if the HOA took a loan to fix the pool and didn't pay it back, the money for that loan isn't protected.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 6804 Assessment Funds Exemption

(a) Regular assessments imposed or collected to perform the obligations of an association under the governing documents or this act shall be exempt from execution by a judgment creditor of the association only to the extent necessary for the association to perform essential services, such as paying for utilities and insurance. In determining the appropriateness of an exemption, a court shall ensure that only essential services are protected under this subdivision. (b) This exemption shall not apply to any consensual pledges, liens, or encumbrances that have been approved by a majority of a quorum of members, pursuant to Section 6524, at a member meeting or election, or to any state tax lien, or to any lien for labor or materials supplied to the common area. (Added by Stats. 2013, Ch. 605, Sec. 21. (SB 752) Effective January 1, 2014.)

Last verified: January 21, 2026

Key Terms

regular assessmentsexempt from executionessential servicesconsensual pledgesstate tax lien

Related Statutes

  • § 5620 Assessment Exemption Limitations
  • § 1917.320 Reverse Mortgage Interest Terms
  • § 1997.010 Commercial Lease Use Restrictions
  • § 1997.020 Commercial Lease Use Restrictions
  • § 1997.030 Use Restrictions Prohibited

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Civil Code. Section 6804.
View Official Source