Question:
The association added a assessment for three years and also raised the dues. The access was to cover expenses they didn’t have for all the new roofing. The three years expires in January and they’re planning on keeping it going along with getting a loan from a bank to complete the job. How can the be held accountable for mis managing?
– Sherr
Answer:
Hi Sherr,
It is a good idea to review the homeowners association’s financial statements to see where the money has been going. Homeowners have a right to copy and inspect the financial records of the HOA, as per the Davis-Stirling Act.
Additionally, special assessments typically need membership approval if they go beyond a certain percentage. Civil Code § 5605 states:
“(a) Annual increases in regular assessments for any fiscal year shall not be imposed unless the board has complied with paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b) of Section 5300 with respect to that fiscal year, or has obtained the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.
(b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the association’s preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.
(c) For the purposes of this section, “quorum” means more than 50 percent of the members.”
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
