HOA assessments in Rancho Cordova are governed by Civil Code 5600-5740. Annual regular assessment increases are capped at 20 percent without member vote (Civil Code 5605), and special assessments in a fiscal year are capped at 5 percent of the budgeted gross expenses without member approval. Delinquent assessments accrue interest and can lead to liens and foreclosure under strict procedures.
Civil Code section 5605 limits the board acting alone to increasing regular assessments by no more than 20 percent over the prior year and imposing special assessments totaling no more than 5 percent of budgeted gross expenses in any fiscal year; exceeding these thresholds requires approval by a majority of a quorum of members. Civil Code 5650 makes delinquent assessments a personal debt of the owner and allows reasonable late fees (the greater of 10 dollars or 10 percent), interest at up to 12 percent annually, and recovery of reasonable collection costs. Civil Code 5673-5685 establish pre-lien, lien, and non-judicial foreclosure procedures, with section 5720 imposing restrictions including a 1,800 dollar or 12-month delinquency threshold before non-judicial foreclosure can proceed on unpaid assessments (emergency or similar charges do not count toward this). Notice requirements include certified mailings and opportunity to cure.
Owners who fail to pay can be charged late fees, interest, collection costs, and face liens and eventual foreclosure if statutory thresholds are met. Associations that violate collection rules can be liable for damages and attorney fees.
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