Legal Question in Real Estate Law in California

Re: HOA Question

A homeowners association can raise dues over 5% if it is for emergency purpose. You may wish to attend the next meeting and question the Board of Directors concerning the increase. Find out what the Board is doing to collect past due assessments. Your Association may need a new attorney.

Re: HOA Question

HOA fiscal conduct in this area is statutorily regulated. In particular, the use of reserve money is governed by Civil Code Section 1356/1365.5):

"The Board of Directors shall not expend reserve funds for any other purpose than the repair, restoration, replacement and maintenance of major components which are the obligation of the association, or related litigation. ... However, the board may authorize the temporary transfer of moneys from a reserve fund to the association's general operating fund to meet short-term cashflow requirements or other expenses, if the board has provided notice of the intent to consider the transfer in a notice of meeting, which shall be provided as specified in Section 1363.05. The notice shall include the reasons the transfer is needed, some of the options for repayment, and whether a special assessment may be considered. If the board authorizes the transfer, the board shall issue a written finding, recorded in the board's minutes, explaining the reasons that the transfer is needed, and describing when and how the moneys will be repaid to the reserve fund. The transferred funds shall be restored to the reserve fund within one year of the date of the initial transfer, except that the board may, after giving the same notice required for considering a transfer, and, upon making a finding supported by documentation that a temporary delay would be in the best interests of the common interest development, temporarily delay the restoration. The board shall exercise prudent fiscal management in maintaining the integrity of the reserve account, and shall, if necessary, levy a special assessment to recover the full amount of the expended funds within the time limits required by this section. This special assessment is subject to the limitation imposed by Section 1366. The board may, at its discretion, extend the date the payment on the special assessment is due. Any extension shall not prevent the board from pursuing any legal remedy to enforce the collection of an unpaid special assessment."

If you do not feel that the Board has followed these requirements, please feel free to contact me at your convenience.

Yours truly,

Bryan

619.400.4929

Re: HOA Question

Yes & yes. That's what they are there for. Read your CC&R's to determine all the other things they 'can do'.

Re: HOA Question

If this matter has not been resolved contact me immediately.