SB 1007 and Your HOA Fees: What Walnut Creek Condo Owners Need to Know

Will California's SB 1007 Cap HOA Fee Increases in 2026?

SB 1007 passed the California Senate on May 28, 2026, and would cap most annual HOA assessment increases at 8% unless a majority of homeowners vote to approve a bigger hike. It would also require HOAs to disclose exactly what fees are funding, including management company compensation, before any increase takes effect. The bill is still working through the Assembly and is not law yet, so Walnut Creek condo owners facing steep HOA increases right now shouldn't assume relief is coming this year — but it's worth understanding what's on the table and what it would, and wouldn't, fix.

By Michael Delehanty — Delehanty Group | DRE #01505346 | July 6, 2026

A Walnut Creek condo owner recently told a reporter his HOA fees now run $1,500 a month — more than his mortgage payment. Add his condo insurance and property taxes on top of that, and his monthly housing cost is being driven almost entirely by numbers he doesn't control and can't refinance. If that sounds familiar, you're not imagining it, and you're not alone.

This is showing up in the numbers, too. The East Bay condo market has been under real pressure over the past year — prices softer, days on market longer, and buyers scarcer than in the single-family market, which is still posting strong appreciation in Walnut Creek. Rising HOA fees are a big part of why. When a monthly bill keeps climbing and can't be shopped, refinanced, or negotiated the way a mortgage can, it changes how buyers value a unit and how owners think about whether to keep holding one.

How HOA Fees in Walnut Creek Got This High

HOA dues have started acting like a second mortgage for a lot of condo owners in this market — except you can't refinance a shadow mortgage, negotiate it down, or build equity in it. Every $100 in monthly HOA dues cuts roughly $16,000 out of your buying power if you're shopping for a condo, and it's an ongoing cost that keeps climbing whether or not your income does.

In Walnut Creek, HOA fees typically run $350 to $800 or more a month depending on the building. Older complexes like The Keys tend to run $600 to $800 a month, while newer or smaller townhome-style communities run closer to $350 to $500. A few forces are driving the increases across the board:

Insurance is the single biggest factor. Wildfire losses and carriers pulling out of California have pushed HOA master policy premiums up sharply — in some cases doubling at a single renewal, a trend that's reshaping what East Bay buyers and sellers need to know about the state's broader insurance crunch.
SB 326, California's balcony inspection law, requires mandatory structural inspections and repairs on multi-family buildings, and those costs get passed straight through to owners.
Labor and materials cost more every year, and California's minimum wage reaching $16.90 an hour in January 2026 pushed up the cost of the landscapers, pool techs, and maintenance staff every HOA relies on.
Deferred reserves — HOAs that underfunded their reserve accounts for years are now catching up all at once, which shows up as sudden, steep increases rather than gradual ones.

This matters more than it might seem, because HOA fees are one of the biggest ongoing costs buyers underestimate when comparing condo ownership to a single-family home — they factor directly into what you can actually afford to borrow, not just what you pay every month.

What SB 1007 Would Actually Change

SB 1007 passed off the California Senate floor on May 28, 2026, with 24 votes in favor. It's now sitting in the Assembly, waiting for committee referral, which means it is not law and there's no guarantee it becomes one this session. Six Democrats joined most Republicans in opposing it at the Senate hearing, so this is a genuinely contested bill, not a done deal.

Here's what it would do if it passes as written:

Cap regular assessment increases at 8% a year unless a majority of homeowners vote to approve something higher.
Require HOAs to disclose exactly what fees fund — including how much goes to third-party management company compensation — before they can raise dues.
Give homeowners facing fines the right to see the evidence the board is using against them, at least five business days before a disciplinary hearing.

Here's what it would not do:

It would not cap special assessments — the one-time bills HOAs levy for major repairs like a new roof or elevator overhaul — which is exactly the mechanism some board members worry associations would lean on more heavily if regular assessment increases get capped.
It would not retroactively reduce fees that have already gone up.
It would not eliminate the insurance and labor cost pressures driving the increases in the first place. It only limits how fast an HOA can pass those costs on to you without a vote.

One HOA board member put it well in recent coverage of the bill: a lower annual cap could turn into a "pay me now or pay me later" problem, where associations postpone major capital projects — like replacing aging elevators in a 1970s-era building — because they can't raise enough through regular assessments, then hit owners with a bigger special assessment down the road instead.

Should You Sell Now, or Wait to See What Happens With SB 1007?

If you own a Walnut Creek condo and you're watching your HOA fees climb, here's how I'd think through it.

If your building has strong reserves and no deferred maintenance, rising monthly dues are frustrating, but they're predictable. SB 1007 passing or failing won't change your calculus much either way — you're managing a cost, not dodging a bomb.

If your building has a track record of underfunded reserves, deferred maintenance, or a big-ticket item on the horizon — an aging roof, elevators, plumbing — a special assessment is a real risk regardless of what happens with this bill, and it might become a bigger risk if the cap passes and pushes boards toward assessments instead of dues increases. This is exactly the kind of thing I look for walking a building. After 15 years running a contracting firm here in the East Bay, I can usually spot deferred maintenance and reserve-funding problems before they show up in the HOA's own paperwork.

Before you decide either way, it's worth asking your HOA board or property manager a few direct questions:

What percentage of the recommended reserve level is the association currently funded at?
Has a reserve study been done in the last three years, and what did it flag?
Are there any planned or discussed special assessments in the next 12 to 24 months?
How much of the current monthly fee is going toward insurance compared to five years ago?

The answers tell you far more about your real risk than anything happening in Sacramento right now.

If you're a buyer weighing a condo purchase right now, remember that HOA fees this high already limit your financing in more ways than one. Lenders are increasingly flagging buildings with high fees, special assessment history, or reserve shortfalls as non-warrantable, which narrows your loan options before you even get to the monthly HOA bill — a pattern I've covered in more depth in why East Bay condos are getting harder to sell.

Waiting for SB 1007 to become law isn't really a strategy. It's still contested, it isn't retroactive, and it doesn't touch the special assessment risk that worries owners most. If you're deciding whether to sell now or hold, that decision should rest on your building's specific financial health and your own timeline, not on a bill that may or may not clear the Assembly this year.

Your specific number — what you'd net selling now versus what you're likely to pay in fees and possible assessments if you hold — depends on your unit, your building's reserve position, and where the broader condo market sits when you're ready to move. That's exactly the kind of net-proceeds analysis worth running before you decide either way.

If you're trying to figure out what this means for your specific situation, I'm happy to walk you through it. Text or email me directly — (510) 697-3900 or michael@delehantyre.com — and we'll talk through the numbers.

Frequently Asked Questions

Has SB 1007 passed and become law?

Not yet. SB 1007 passed the California Senate floor on May 28, 2026, with 24 votes in favor, but it's still awaiting committee referral in the Assembly. It would need to pass the Assembly and be signed by the governor before it takes effect, so Walnut Creek condo owners shouldn't count on relief from this bill in 2026.

How much are HOA fees in Walnut Creek condos right now?

Most Walnut Creek condo HOA fees run $350 to $800 or more a month, depending on the building's age, amenities, and reserve funding. Older complexes with more deferred maintenance tend to sit at the higher end of that range, while newer or smaller townhome-style communities typically run lower.

Can my HOA raise my fees without a vote right now?

Yes. Under current California law, HOA boards can raise regular assessments without a membership vote in most cases, which is exactly what SB 1007 is trying to change by proposing an 8% annual cap without homeowner approval.

Does SB 1007 also limit special assessments?

No. SB 1007 targets regular annual assessment increases, not one-time special assessments for major repairs like roofs or elevators. Some HOA board members worry that capping regular increases could actually push associations toward relying more on special assessments instead.

Should I sell my condo because HOA fees are getting too high?

That depends on your building's reserve health, upcoming capital needs, and your own timeline, not on what happens with SB 1007. A condo with strong reserves and no deferred maintenance is a very different situation than one facing a looming special assessment, even if the monthly fees look similar today.

About Michael Delehanty — Delehanty Group | DRE #01505346

Michael Delehanty is a Walnut Creek-based real estate agent with Compass, specializing in buying and selling homes across the East Bay — including Walnut Creek, Concord, Pleasant Hill, Danville, Orinda, and the surrounding communities.

Before becoming a real estate agent, Michael spent 15 years running his own contracting firm in the East Bay, working on thousands of homes and major projects across the Bay Area. That hands-on construction background gives his clients a distinct advantage: when Michael walks through a property, he sees what most agents simply can't. From structural details to renovation potential, his experience translates directly into sharper pricing, smarter negotiation, and fewer surprises at the inspection table.

Michael has been a licensed Realtor since 2005, bringing more than 20 years of experience to every transaction. He has successfully guided clients through complex situations including short sales, bank-owned properties, investment transactions, and competitive multiple-offer scenarios. Whether you are a first-time buyer, a move-up seller, or an investor, Michael brings the market knowledge and problem-solving skills to get deals done.

What sets Michael apart is his deep roots in this community. He has lived in Walnut Creek for nearly 30 years and is genuinely invested in the people here — not just the properties. He served four years as Auction Chair and Athletic Boosters President at Las Lomas High School, and has been a member of a local book club for eight years. His two daughters grew up here, attending Las Lomas before going on to the University of Washington and Cal Poly San Luis Obispo. When Michael helps you buy or sell a home in Walnut Creek or the surrounding East Bay communities, he is not just doing a transaction — he is working in the neighborhood where he has built his own life.

michael@delehantyre.com | (510) 697-3900 | michaeldelehanty.com