Legal Question in Real Estate Law in California
Home Owners Association Assessment
Our Homeowners Association wants to assess the members a special assessment in the amount of $9,000. They say the assessment is to repair roofs and termite damage. Can our Board assess the members without a writtetn statemnt as to the itmemized costs of such repairs? There have not been any repairs on roofs for 30 years. This $9,000 is an estimate from an unlicensed general contractor that the association board has hired at a rate of $50.00/hr. They have stated that they can place a lien on our property if the amount is not paid in full. Can the board charge us a $9,000 assessment without showing us in writing exactly where the money is being spent. They have not even acquired any bids from roofing contractors. Would you advise me to obtain an attroney? If so what kind of attorney? Thank you for your assistance.
3 Answers from Attorneys
Re: Home Owners Association Assessment
According to my own HOA By laws, a special assessment requires approval of a certain percentage of all homeowners. There should be funds in an account that should take care of such problems already (reserve acct). Board could be in trouble if a reserve account does not exist. I need more info. Call for more info for you and for me to discuss.
Re: Home Owners Association Assessment
your board is all screwed up -- i have been practing 30 years in the real esstate area and specifically with hoas and they are clearly breaching there fiduciary duties to the assoc. and it memebers -- not only in the assessment but dealing with an unlicensed contractor, i am in nother cal so i sugest you talk directly to the hoa's attorney or if they don't have one write a letter to each member of the board and state your objections, after you consult whit an attorney of your own who has a expertise in r.e./hoa -- good luck and don't delay
Re: Home Owners Association Assessment
I had the misfortune of representing HOAs for about 4 years, at one point handling as many as 450 HOAs if many shapes and sizes. The are a royal pain in the neck to represent and I will never represent HOA's again.
HOAs are required to levy regular and special assessments to fulfill their duties under the CC&Rs. Civil Code Secvtion 1366(b) states that special assessments exceeding 5% of the gross budgeted expenses must be approved by a vote of the ownership and it requires a majority (50% + 1 vote) of a quorum (more than 50% of owners). This can be done at a properly noticed homeowner meeting. There are specific provision in the Corporations Code and probably repeated in the Bylaws that require a minimum of 10 days and nor more than 90 days notice of the meeting to address the issue of the special assessment. The notice of the meeting should accurate describe the resolution/assessment to be voted upon. The Board SHOULD provide information to allow the membership to make an informed decision and the Board SHOULD NOT be doing business with an unlicensed contractor.
I agree with other commments that it appears that he Board of Directors is not fulfilling its duties under the CC&Rs. I strongly recommend that you contact a local attorney that is familiar with HOA law, which is sort of a niche speciality. For a referral, I would contact the local chapter of the Community Associations Institute or the California Association of Community Managers.
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