Processing Fees for HOA Dues in California

Hi Judith,

It is common for homeowners to pay processing fees. These fees might be paid to the management company or the bank that processes the payments. However, according to Civil Code § 5600(b), “An association shall not impose or collect an assessment or fee that exceeds the amount necessary to defray the costs for which it is levied.” As such, the processing fee must be justified and not used as a way to earn a profit.