The Davis-Stirling Act regulates HOA assessments in LA County. Regular assessments may increase up to 20% annually without member vote. Special assessments exceeding 5% of budget require majority member approval.
Under Civil Code §5600–5625, HOA boards may increase regular assessments up to 20% per year without a member vote. Increases over 20% require approval by a majority of the membership. Special assessments exceeding 5% of the annual budget also require majority member approval. The board must distribute an annual budget report within 30-90 days before the fiscal year (Civil Code §5300). Assessments become delinquent 15 days after due. Late fees cannot exceed 10% of the delinquent amount or $10, whichever is greater. Interest on delinquent assessments is capped at 12% annually. HOAs may record liens for unpaid assessments after certain notice requirements. Foreclosure of assessment liens is permitted for amounts exceeding $1,800 or assessments delinquent for more than 12 months.
Late payment: up to 10% penalty plus 12% annual interest. Delinquent assessments exceeding $1,800 or 12 months overdue may result in property lien and potential foreclosure under Civil Code §5700–5735.
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