The rules the statute voids
Civil Code section 4735 targets the paperwork first. Under subdivision (a), a provision in an HOA's governing documents, architectural guidelines, or landscaping policies is "void and unenforceable" if it prohibits low water-using plants as a group or as a replacement for existing turf. The same fate hits provisions that prohibit artificial turf or any synthetic surface that resembles grass, under subdivision (a)(2).
Subdivision (a)(3) goes further. A rule is also void if it has the effect of blocking or restricting compliance with a water-efficient landscape ordinance in effect under Government Code section 65595(c), whether that is your city's own ordinance or the state model, or with any water-use regulation or restriction adopted under Water Code sections 353 or 375. In plain terms, when the state landscape ordinance or a drought regulation points one way and an HOA rule points the other, the HOA rule is the one that gives.
Void means the rule has no effect, even though it still sits printed in the CC&Rs. The association does not have to amend anything for the provision to be dead, and a fine built on a void rule has nothing under it. The statute also catches indirect bans: subdivision (a) reaches rules that include conditions with the effect of prohibiting, so a guideline that allows drought plants on paper but buries them in conditions falls too.
The brown lawn shield during a declared drought
Subdivision (c) answers the title question. While a drought emergency declaration is in effect, an association "shall not impose a fine or assessment" against an owner for reducing or eliminating the watering of vegetation or lawns. Two triggers count: a state of emergency declared by the Governor due to drought, or a local emergency declared by a local government due to drought, both under Government Code section 8558.
The trigger is the declaration, not the weather. A hot, rationed summer with no active declaration does not switch the shield on, and a wet winter with a declaration still in effect does not switch it off. Before leaning on subdivision (c), confirm that a state or local drought declaration currently covers your address.
Notice the wording covers both reduced and eliminated watering. A lawn that goes brown and dormant because you dialed irrigation back is covered, and so is a lawn you stopped watering entirely. The statute blocks assessments as well as fines, so the association cannot reroute the same penalty under a different label.
The recycled water exception
Subdivision (d) carves out one group. The fine shield in subdivision (c) does not cover an owner who, before the fine or assessment, receives recycled water from a retail water supplier and fails to use that water for landscape irrigation.
The logic is supply. Drought declarations protect drinking water, and recycled water delivered for irrigation is not the supply under strain. If your lot receives recycled irrigation water and you let the landscape go brown anyway, the statute leaves the association's enforcement tools intact. Owners on ordinary potable service are untouched by this carve-out.
What the HOA can still require
Section 4735 does not strip associations of landscaping authority. Subdivision (b) lets an association keep applying the landscaping rules in its governing documents to the extent those rules fully conform with subdivision (a). Design review for a front yard conversion, tidiness and weed standards, plant placement rules, and general upkeep requirements all survive as long as they stay out of the void categories.
Timing matters most for lawns. Once a drought declaration lapses, subdivision (c) stops blocking fines, and conforming maintenance rules regain their force against a dead or neglected yard. The durable move is to replace thirsty turf with low-water plants, because subdivision (a)(1) protects that choice in any year, drought declaration or not.
Subdivision (e) adds a one-way ratchet. If you installed water-efficient landscaping in response to a declared drought emergency, the association cannot require you to reverse or remove it after the emergency ends. Conversions made during a drought stay.
If a fine arrives anyway
Boards do not always track the Civil Code, and some fine first and research later. Respond in writing, name Civil Code section 4735 and the subdivision that fits your case, and attach evidence: the drought declaration and its dates, photos of the landscape, and watering records from your controller or utility.
Put the disagreement through the association's own dispute process and keep the statute citation in the written record; that usually ends the matter. If the fine rests on a rule that subdivision (a) voids, say so plainly: the rule is void and unenforceable, and a fine built on it has no rule behind it.