HOA regular and special assessments in Carlsbad are governed by the Davis-Stirling Act (Cal. Civ. Code 5600-5740). The board may increase regular assessments up to 20% per year and impose special assessments up to 5% of the budgeted gross expenses without a member vote.
Under Civ. Code 5605, an HOA board may NOT impose a regular assessment that is more than 20% greater than the regular assessment for the immediately preceding fiscal year, nor a special assessment that in aggregate exceeds 5% of the budgeted gross expenses of the association for that fiscal year, without member approval. Member approval requires a vote of members constituting a quorum, with the majority of votes cast in favor (Civ. Code 5605(b)). Emergency assessments under Civ. Code 5610 are exempted in cases of court orders, threats to personal safety, or unforeseen damage. Delinquent assessments accrue interest up to 12% per year under Civ. Code 5650 and the association may impose a one-time late charge of 10% of the delinquent assessment or $10, whichever is greater. The board must distribute a pro forma operating budget and annual financial disclosure summary to members 30-90 days before fiscal year-end under Civ. Code 5300.
Assessments imposed in violation of Civ. Code 5605 are unenforceable. A member may sue for declaratory relief and recover attorney's fees under Civ. Code 5975. Foreclosure for delinquent assessments under $1,800 (excluding late fees and interest) or less than 12 months delinquent is prohibited under Civ. Code 5720.
Carlsbad, CA
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