Can California HOAs Levy Special Assessments?

Question from L, Can California HOAs Levy Special Assessments?

Answer from AI:

In California, Homeowners Associations (HOAs) have the authority to levy special assessments to cover significant expenses that exceed their regular budget. This is typically governed by the Davis-Stirling Common Interest Development Act, which is the primary legislation regulating common interest developments in California.

Understanding Special Assessments

Special assessments are additional charges imposed on homeowners by the HOA to cover unexpected or large expenses that are not included in the regular budget. These can include:

• Major repairs or improvements, such as roof replacements or structural repairs.
• Emergency expenses, like damage from natural disasters.
• Upgrades to community amenities.

Application of Special Assessments

Special assessments are generally applied to all members of the community. However, whether they are applied equally or based on some other criteria can depend on the governing documents of the HOA, such as the CC&Rs (Covenants, Conditions, and Restrictions).

Key Points to Consider:

1. Equal Application: In many cases, special assessments are applied equally to all members, regardless of whether they directly benefit from the repairs or improvements. This is because the costs are often related to maintaining or improving common areas that benefit the community as a whole.
2. Governing Documents: The specific rules about how assessments are levied can be found in the HOA’s governing documents. These documents may outline different assessment structures based on unit size, location, or other factors.
3. Approval Process: The Davis-Stirling Act requires that special assessments exceeding 5% of the budgeted gross expenses for the fiscal year must be approved by a majority of a quorum of members, unless the governing documents state otherwise.

Legal Framework: The Davis-Stirling Act

The Davis-Stirling Common Interest Development Act provides the legal framework for how HOAs operate in California. It includes provisions on:

• Budgeting and financial management.
• Assessment levies and collection.
• Member voting rights and procedures.

For more detailed information, you can refer to the [Davis-Stirling Act](https://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=CIV&division=4.&title=6.&part=5.&chapter=&article=) directly.

When to Seek Legal Advice

If you are a homeowner facing a special assessment and have concerns about its fairness or legality, it may be beneficial to consult with a legal professional. They can provide personalized advice based on your specific situation and the governing documents of your HOA.

For general guidance, you can also explore resources provided by organizations like the [California Association of Community Managers](https://www.cacm.org/) or the [Community Associations Institute](https://www.caionline.org/).

Remember, while this information provides a general overview, each HOA may have unique rules and procedures, so it’s important to review your specific community’s documents and consult with a professional if needed.