HOA assessments in Los Angeles are governed by the Davis-Stirling Act (Civil Code ยงยง5600-5740). Regular assessment increases over 20% require member approval. Special assessments exceeding 5% of the annual budget require a member vote. Foreclosure for delinquent assessments cannot proceed unless the debt exceeds $1,800 or is 12+ months overdue. Partial payments must be applied to assessments before late fees or collection costs.
Under the Davis-Stirling Act, regular HOA assessments can be increased by the board up to 20% above the prior year's assessment without a member vote (Civil Code ยง5605). Increases exceeding 20% require majority approval of the membership. Special assessments (one-time charges for unexpected expenses) that exceed 5% of the budgeted gross expenses for the current fiscal year also require member approval per Civil Code ยง5605. The association must distribute an annual budget report and pro forma operating budget at least 30-45 days before the fiscal year. For delinquent assessments, the association must apply partial payments first to assessments, then to other charges โ this prevents the debt from triggering foreclosure. Foreclosure (nonjudicial) cannot proceed unless the delinquent amount (exclusive of late fees, interest, attorney fees, and costs) exceeds $1,800 or the assessments are more than 12 months delinquent (Civil Code ยง5720). Before recording a lien, the association must send a pre-lien letter by certified mail giving the owner 30 days to pay (Civil Code ยง5660).
Late fees cannot exceed 10% of the delinquent assessment or $10, whichever is greater. Interest on delinquent assessments capped at 12% per year. Improper collection practices: association liable for actual damages and attorney fees.
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