June 20, 2026

The Hedge | Brutal Honesty Over Hype Since 2008

Landscaping and tree disputes are among the most common and most contentious issues in California HOA communities. Who is responsible for a tree that straddles the common area boundary? Who pays when a common area tree drops a limb on a member’s car? What are a member’s rights when the association wants to remove a tree the member values? Davis-Stirling and California property law provide a framework — but it requires knowing where to look.

Common Area vs. Separate Interest Landscaping

The starting point is determining whether disputed landscaping is common area (the association’s responsibility) or separate interest (the member’s responsibility). The CC&Rs define these boundaries, and they’re not always intuitive. Some associations are responsible for all landscaping including within individual lot boundaries; others assign individual homeowners responsibility for everything up to the home’s exterior walls. The specific language in your CC&Rs determines who maintains what — and who pays when something goes wrong.

Tree Liability Under California Law

California has specific rules about tree liability that apply in HOA communities. A property owner (including an HOA for its common area trees) can be liable for damage caused by a tree on their property if they knew or should have known about a hazardous condition and failed to address it. An HOA that receives notice of a dangerous tree condition and fails to act is potentially liable for resulting damage. If you believe a common area tree presents a hazard, notify the HOA board in writing — this creates both a record of notice and the association’s legal obligation to inspect and address the condition.

Solar Shade Conflicts

California’s Solar Rights Act also has provisions addressing tree shading of solar panels. Under California Civil Code Section 714.1, certain trees that substantially shade solar collectors can be required to be trimmed or removed, even if the tree is on a neighbor’s property or in the HOA’s common area. This is an increasingly common conflict in California communities as solar installation rates rise — and one where the law’s specific requirements (the solar collector must have been installed first, the shading must substantially reduce output, and reasonable alternatives must be considered) determine the outcome.

The Hedge has been cutting through financial and business noise since 2008. Brutal honesty over hype — always.

The Hedge | Brutal Honesty Over Hype Since 2008

The federal Corporate Transparency Act (CTA), which took effect January 1, 2024, requires most small businesses to file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN) — a branch of the U.S. Treasury Department. After a turbulent legal history including a period of injunction, the CTA is now in effect and enforcement has resumed. California business owners who haven’t filed are out of compliance and face potential penalties.

Who Must File

The CTA applies to “reporting companies” — corporations, LLCs, and other entities created by filing a document with a state secretary of state. Exemptions include large companies (more than 20 full-time employees, more than $5 million in revenue, and a physical U.S. office), publicly traded companies, banks, insurance companies, and certain other regulated entities. Most California small businesses — the LLCs and corporations that power the state’s economy — are reporting companies required to file.

What Must Be Filed

Reporting companies must disclose to FinCEN: the company’s legal name, address, jurisdiction of formation, and EIN; and for each beneficial owner (anyone who owns or controls 25% or more of the company, or who exercises substantial control over the company), their full legal name, date of birth, current residential address, and a copy of a government-issued photo ID. This information is not publicly disclosed — it goes into a non-public federal database accessible to law enforcement and financial institutions.

The Deadlines and Penalties

Companies formed before January 1, 2024 had until January 1, 2025 to file. Companies formed in 2024 had 90 days from formation. Companies formed in 2025 and after have 30 days from formation. Penalties for willful non-compliance can reach $591 per day (inflation-adjusted) and up to $10,000 in criminal fines. For most small business owners, filing is a straightforward 30-minute task at boiefiling.fincen.gov. The penalties for non-filing far exceed the compliance burden.

The Hedge has been cutting through financial and business noise since 2008. Brutal honesty over hype — always.