In 2024, significant updates to California’s real estate laws impact buyers, sellers, and professionals. These changes aim to underscore California’s dedication to promoting transparency, affordability, and environmental sustainability in the housing sector—but can cause a headache for builders and developers. Effective July 1, the Department of Real Estate (DRE) has implemented higher fees, revised mapping regulations, and new building configurations. Real estate professionals and stakeholders—particularly developers—must familiarize themselves with these updates to navigate the evolving regulatory framework and continue providing high-quality services. Let’s explore these important amendments and their implications for everyone involved in real estate transactions.
Details of DRE Filing Fee Increases
Effective July 1, the DRE has increased its filing fees, impacting the budgets set in new construction developments and their HOAs.
There may be a grace period allotted for the policy changes, but as this is statutory, there is no guarantee. As a result of the DRE budget fee increase, the cost of marketing phases is set to change. Due to the increased price of each marketing phase, you may need to evaluate your phasing. While costs may be increasing, your assessments don’t have to.
| Item | Current Fee | New Fee (as of July 1) |
| Mandatory HOA budget | varies | Increased by 25% for all items |
| Existing lot fees | $10 per lot/unit | $15 per lot/unit |
| DRE Filing fees: Standard subdivision filing fee
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— DRE Filing fees:
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— DRE Filing fees:
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| DRE Filing fees: Common interest filing fee
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— DRE Filing fees:
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— DRE Filing fees:
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Updated Building Configuration Policies
As part of a DRE policy that took effect in 2023, changes have been made to the categorization of attached housing:
- Duplexes: These are considered single-family rentals from an HOA standpoint, allowing owners to control the maintenance without an increase in HOA assessments.
- Triplexes and Larger Buildings: HOAs must provide exterior maintenance for these properties. This includes roof replacement, exterior painting, pest control, and building/fire insurance.
Changes in Materials
The new policy changes will impact the cost of HOA dues, changing the price of construction materials and landscaping projects. HOAs will have to pay a higher price for asphalt, steel fences, wrought iron, and sidings. Because of the cost increases, builders should consider materials that are generally less expensive to maintain, such as concrete, tile roofs, and block walls.
For homeowners, it will be important to consult with your reserve specialist to ensure all maintenance requirements are affordable. Consider using cost-effective materials during your construction planning to reduce potential costs.
Next Steps
If you currently have a DRE filing in place, it is crucial to organize all your Public Reports. If you have received local agency approval, the best course of action is to file your reports as soon as possible or in phases before July. Even if you must submit an incomplete package, filing as much as you can now will allow you to pay the original fees.
As a developer, it is important to familiarize yourself with the latest policy changes, as they will impact how your business is conducted. The change in building configuration reflects the need for regular property assessments for quality assurance. The change in fees associated with buying and selling properties can directly impact the price of HOA dues. For a complete rundown of the DRE HOA increases and how they can affect you or your property, read our full report here.
At California Builder Services, we understand that today’s rising costs have a big impact on HOAs throughout the state. Our Budget Preparers and Reserve Analysts are prepared to provide expert insights into the long-term planning of your Community’s finances, and are ready to assist you with planning for the continued health of your HOA!
