Davis-Stirling limits annual HOA regular assessment increases to 20% without a member vote, and special assessments to 5% of the prior year's budget without a vote (Civ Code §5605). Late assessments carry statutory interest and collection procedures under Civ Code §5650 et seq.
Civil Code §5605 caps regular assessment increases at 20% over the prior year and special assessments at 5% of the prior fiscal year's gross expenses without a membership vote (requires majority of a quorum). The board must distribute an annual budget and reserve study (Civ Code §5300) at least 30-90 days before fiscal year end. Delinquent assessments: late fee of up to $10 or 10% of the delinquent amount (whichever greater) per Civ Code §5650, plus 12% annual interest. Collection must follow Civ Code §5660 pre-lien notice and §5673 IDR (Internal Dispute Resolution) process. Recording a lien requires board resolution (Civ Code §5673). Foreclosure requires assessments to be at least $1,800 or 12 months delinquent (Civ Code §5720). Folsom HOAs must provide annual policy statement and assessment schedule.
Unauthorized assessment increase over 20%: void; members can challenge in court. Improper lien/foreclosure: rescission and attorney's fees.
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