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Tri-Valley Townhome or Condo: HOA Documents, Dues and Loans

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Tri-Valley Townhome or Condo: HOA Documents, Dues and Loans

When you buy a townhouse or condominium in a California common interest development, you automatically become a member of its association, according to the California Department of Real Estate. That holds for a townhome or condo anywhere in the Tri-Valley. Three things deserve a close look before you commit: the documents the seller must give you, how far the dues can rise, and whether your loan program accepts the project. Rules checked against California law and HUD, Fannie Mae and VA guides on October 8, 2026.

Key Takeaways
– A townhome can legally be a condo unit or a lot in a planned unit development (PUD), and the recorded documents decide which loan rules apply.
– Since January 1, 2026, the HOA documents a seller must provide include the latest balcony inspection report where the law requires one.
– Raising regular dues more than 20% over the prior year takes approval from a majority of a quorum of members, emergencies aside.
– FHA, conventional and VA loans review condo projects differently, so have your lender check the specific project early.

Is a townhome a condo or a PUD?

It depends on how the property was legally created, not how it looks. Fannie Mae’s Selling Guide tells lenders to determine whether a unit is in a condo or a planned unit development (PUD). A townhome can be either, so the recorded documents decide which project rules apply.

In HUD’s Handbook 4000.1, a PUD unit is title to the land and improvements, plus an interest in an HOA that owns the common areas and charges lien-supported assessments. Under Fannie Mae’s PUD rules, HOA membership must be automatic, assessments mandatory, and the unit not legally created as part of a condo or co-op.

What HOA documents must the seller give you?

The seller must give you the association documents listed in Civil Code section 4525 as soon as practicable before title transfers. The HOA must supply them to the owner, or someone the owner authorizes, within 10 days of the mailing or delivery of a written request (Civil Code section 4530). The main ones:

Document What it covers
Governing documents All of them, including the CC&Rs, bylaws and rules
Budget report package The most recent annual budget report and related disclosures
HOA statement of charges Current assessments and fees, plus unpaid assessments, fines or penalties on the unit
Approved changes Assessment or fee changes approved by the board but not yet due
Rental ban statement A statement describing any ban on renting or leasing units
Violation notices Any unresolved notice the HOA sent the seller about a violation of the governing documents
Construction defect list The initial list of defects the HOA gave members in a builder defect claim, unless the matter was settled or otherwise resolved
Board minutes Approved minutes from the past 12 months, excluding executive sessions, if you ask
Elevated elements report The latest balcony and walkway inspection report, required since January 1, 2026

That last item comes from SB 410. Under Civil Code section 5551, a condominium association must have a licensed structural or civil engineer or architect inspect a sample of its balconies, decks, stairways and walkways at least once every nine years. The law covers only buildings with three or more attached multifamily units, so a townhome HOA may not have this report.

If you’re buying from a builder, the paperwork differs, and our guide to new homes in San Ramon covers it.

What should you check in the budget report and CC&Rs?

Start with the reserves and planned special assessments. HOAs must distribute an annual budget report 30 to 90 days before each fiscal year ends (Civil Code section 5300). It includes an operating budget, summaries of the reserves and the reserve funding plan, and whether the board expects special assessments for major components and, if so, their estimated amount, start date and duration.

It must also disclose:

  • Deferred repairs: whether the board has decided to defer or skip repairing or replacing any major component with 30 years or less of remaining life, and why.
  • Insurance: limits and deductibles on the HOA’s property, general liability, earthquake, flood and fidelity policies, plus a notice that they may not cover your property and that you may owe part or all of a deductible.
  • FHA and VA status: for a condominium project, whether it is FHA-approved and VA-approved.

Behind those reserve figures sits a reserve study. Civil Code section 5550 has the board inspect the major components for that study at least once every three years, when their replacement value is at least half the association’s gross budget, and review the study every year.

An Assessment and Reserve Funding Disclosure Summary comes with the budget report, showing the percent funded and whether projected reserves will cover major repairs and replacements over the next 30 years (Civil Code section 5570).

Then read the rules. The Department of Real Estate calls it essential to examine the CC&Rs, association rules and any architectural guidelines before buying. Buyers should also look for restrictions on vehicles, pets, architectural design, fences and parking, DRE says. The documents also answer who maintains a unit inside and out, and who insures which components.

Ask about lawsuits, too. DRE warns that reserves spent on litigation could mean a future special assessment on a new owner, and that a lawsuit may make a unit harder to refinance or sell.

How much can HOA dues go up?

Without a member vote, a board can’t raise regular dues more than 20% over the prior fiscal year, except in emergencies. Under Civil Code section 5605, going past that takes approval from a majority of a quorum of members, as do special assessments that together exceed 5% of the year’s budgeted gross expenses.

A quorum here means more than 50% of the members, so a majority of a quorum can be fewer than half of all members. Any annual increase in regular assessments also requires that the board met that year’s budget-report requirements, or the same member approval.

Civil Code section 5610 defines the emergencies: an extraordinary expense ordered by a court, one needed to address a threat to personal health or safety or another hazard, or a repair the board couldn’t reasonably have foreseen when preparing the budget report. Owners get individual notice of any increase 30 to 60 days before it’s due (Civil Code section 5615).

Our guide to how much house you can afford in the Tri-Valley covers dues in a monthly budget.

How do FHA, conventional and VA loans review a condo project?

Each program has its own project rules for a resale unit, and the tests differ.

FHA Conventional (Fannie Mae) VA
Attached condo Project on FHA’s approved list, or Single-Unit Approval In an established project: Full Review, FHA approval through HUD’s own review, or PERS review Project must be VA-approved
Townhome that is legally a PUD lot FHA’s approval rules are written for condo units; ask your lender how a PUD lot is handled Project review waived, except some manufactured-home PUDs No VA project approval needed
Units behind on dues No more than 15% in arrears, for project approval No more than 15% at 60 or more days past due, in a Full Review Ask your lender
Reserves At least 10% of 12 months of assessments, unless a reserve study supports less At least 10% of the budget, unless an acceptable reserve study shows adequate funding Ask your lender
Where to check HUD’s approved-condo search Your lender’s project review VA’s Condo Report

Table sources: HUD Handbook 4000.1; Fannie Mae Selling Guide B4-2.1-01, B4-2.1-02, B4-2.2-01 and B4-2.2-03; VA Lenders Handbook, Chapter 16.

FHA loans. HUD’s Handbook 4000.1 requires the lender to confirm an approved project is on FHA’s list when the case number is assigned. For a project that isn’t approved, HUD’s Single-Unit Approval requires a complete project of at least five units that isn’t a manufactured home, with at least 50% owner occupancy. The unit must have been occupied or have a certificate of occupancy at least a year old. The loan needs a TOTAL Mortgage Scorecard Accept or, if manually underwritten, a loan-to-value ratio of 90% or less.

In projects of 20 or more units, FHA may stop issuing Single-Unit Approval case numbers once FHA-insured loans exceed 10% of units, and smaller projects can have no more than two. A Single-Unit Approval case number doesn’t make the unit or project FHA-approved.

Conventional loans. Under Fannie Mae’s rules, some conditions can make a condo project ineligible. They include the HOA being named in pending litigation, one entity owning more than 20% of units in a project of 21 or more, and critical repairs, such as unfunded repairs over $10,000 per unit that should be done within 12 months. A conventional loan that won’t be sold to Fannie Mae may follow other rules, so ask your lender.

VA loans. The lender must make sure mandatory HOA assessments in a condo or PUD are subordinate to the VA-guaranteed mortgage (VA Lenders Handbook, Chapter 16).

Who can answer questions about a specific Tri-Valley complex?

Ask a board member and the managing agent first, as DRE suggests, then take questions about the documents to your agent, an attorney and a financial advisor. Rules vary between associations, so don’t assume one HOA’s rules apply at another. New to buying? See our first-time home buyer guide to the Tri-Valley and our California down payment assistance guide.

For more on each city, see our Livermore, Pleasanton, Dublin, San Ramon and Danville community pages.

The Mony Nop Real Estate Team, Compass, 925.575.1602, works across Livermore, Pleasanton, Dublin, San Ramon and Danville, with 400+ clients served. If you’re weighing a townhome or condo in the Tri-Valley, get in touch with our team.

Frequently Asked Questions

How long does an HOA have to provide resale documents in California?

Ten days. Under Civil Code section 4530, the HOA must provide the requested section 4525 documents within 10 days of the mailing or delivery of a written request. The duty to give them to you sits with the seller, and the requester can choose electronic delivery if the HOA keeps the documents electronically.

Who pays for HOA resale documents in California?

The seller. Civil Code section 4530 makes it the seller’s responsibility to pay whoever provides the documents section 4525 requires. The HOA’s fee must be reasonable and based on its actual cost. A seller who already has current copies must give them to the buyer at no cost.

Can an HOA raise dues without a member vote?

Yes, within limits. Under Civil Code section 5605, a board needs approval from a majority of a quorum of members to raise the regular assessment more than 20% over the prior fiscal year, or to levy special assessments totaling more than 5% of budgeted gross expenses. Emergencies, as section 5610 defines them, are exempt.

About the author

Mony Nop has held a California real estate license since 2007 (DRE# 01813021) and spent 17 years with the Livermore Police Department. The two careers overlapped: he started in real estate part time while still an officer, then moved to real estate full time. He leads the Mony Nop Real Estate Team at Compass.

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