HOA assessments in Orange County are governed by the Davis-Stirling Act. Regular assessments can increase up to 20% per year without member vote. Special assessments exceeding 5% of the annual budget require member approval. Delinquent assessments can result in liens and foreclosure.
The Davis-Stirling Act (Civil Code 5600-5740) governs HOA assessments in California. Regular assessments may be increased up to 20% per year without a member vote. Increases exceeding 20% require approval by a majority of the membership. Special assessments exceeding 5% of the current year's budgeted gross expenses require member approval. Emergency special assessments for immediate health/safety repairs or legal compliance may be levied without member vote per Civil Code 5610. Delinquent assessments accrue interest (up to 12% per year) and late charges per Civil Code 5650. After 30 days, the HOA may record a lien against the property. Assessment liens can lead to non-judicial foreclosure after the amount exceeds $1,800 or is more than 12 months delinquent. Payment plans must be offered for delinquent amounts per Civil Code 5665. Large OC communities like Coto de Caza and Ladera Ranch have significant monthly assessments reflecting extensive amenities.
Delinquent assessments: late charges plus 12% annual interest. Lien recorded after 30 days delinquency. Non-judicial foreclosure possible when delinquency exceeds $1,800 or 12 months. Payment plans must be offered per Civil Code 5665.
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