From the point of view of a resident, a homeowners’ association (HOA) in California operates much like a government entity. It has the authority to enact legally binding rules and to assess and collect fees for a variety of purposes, such as maintenance of common areas and community-wide utility services. Ongoing drought conditions throughout California have strained the ability of many HOAs to maintain various requirements and services. As just one example, an ongoing dispute in the Coachella Valley area involves a water district’s efforts to maintain water service in the face of water shortages and new state standards for water quality.
More than 1,000 water districts provide services to cities, counties, and other communities throughout California. These districts may bill consumers directly for services, or they may contract with HOAs to provide services to a community. The HOA would then bill individual residents. Increases in fees require a vote by the members of a water district’s board after a public meeting. A 1996 voter initiative, Proposition 218, limits the amount of fee increases to actual increases in a water district’s cost of providing water service. Any increase in fees ultimately falls on consumers, or on HOA members through the HOAs.
New water quality standards established by the California Department of Public Health (DPH) have reportedly led to substantial expenses for many water districts. DPH proposed new standards in 2013 regarding the amount of hexavalent chromium, also known as chromium 6, in drinking water. The consensus among public health officials is that chromium 6 is carcinogenic when consumed above certain amounts. This is the substance made famous by the events depicted in the film Erin Brockovich, in which the residents of a small town in the Mojave Desert experienced high rates of cancer due to chromium 6 in the groundwater. The DPH recommended a cap on chromium 6 of 10 parts per billion (ppb), considerably lower than the federal cap of 100 ppb. Ten ppb became the state standard in May 2014.