Boards have the authority (and the obligation) to special assess their membership to pay judgments against their associations. The 5% limitation on special assessments is rescinded as provided for in
Civil Code §5610 and the board must impose the assessment regardless of any opposition by the membership.
In the case of
O'Toole Co., Inc. v. Kingsbury Court, a 46-unit association voted down an assessment to pay a $200,000 judgment against it. The court ordered the board to levy an emergency assessment to pay the judgment regardless of the membership's vote to the contrary.
ASSISTANCE: Associations needing legal assistance can
contact us.
To stay current with issues affecting community associations, subscribe to the
Davis-Stirling Newsletter.