Legal Question in Real Estate Law in California
HOA, CC&Rs and state law
We are having problems with our HOA. They do not follow the CC&Rs and are spending out of control then assessing the homeowners. When I brought up that there needs to be a vote for additional expenses, I was told that these improvements were voted on two years ago, before myself and another neighbor (who is also against the improvements) lived there. They have lied about a lot of things (we've caught them). How do we know that they are not lying now about the vote (we weren't there)? We truly can't afford these improvements (our mortgages are much higher than theirs are). Is there a statute of limitations on spending after a vote is taken? After all, we did not live there, therefore we did not cast a vote in the expenses that are now putting us in debt.
Thank you so much for your help with this issue.
2 Answers from Attorneys
Re: HOA, CC&Rs and state law
It sounds like what you are describing are special assessments. Civil Code 1366(b) states that a Board cannot impose a special assessment in the aggregate that exceeds 5% of the budgeted gross expense for that fiscal year without the approval of the members. If you want to find out more about what the Board is doing and has done in the past you have inspection rights under Civil Code � 1365.2 as a member. You may make a request to the Board to review financial documents, contracts, meeting minutes, etc. The inspection of these documents might provide you with the answer of whether the Board approved the improvements. I have never heard of a statute of limitations for voting. However, there may be a disclosure issue if the voted on improvement costs were approved before you bought the residence and was not disclosed to you.
Feel free to contact me via email/phone if you would like to pursue this matter.
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Re: HOA, CC&Rs and state law
To get the voting record, write a certified letter requesting minutes of the last HOA board neeting. Assuming there is reason to beleive the board is commiting waste of the HOA assets, you can bring court action, for damages and injunction. Contact my office of you are in LA county.
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