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Penalty for Late Budget
Although boards are allowed to raise dues by up to 20% without membership approval Civil Code §1366(b), the authority is conditional on timely distribution of a pro forma operating budget as described in Civil Code §1365, i.e., not less than 30 days nor more than 90 days prior to the beginning of the association's fiscal year (Civil Code §1365(a)(4).

Failure to meet the above requirements nullifies any increase levied by the board. The proposed increase must be approved by the membership, constituting a quorum, casting a majority of the votes. For the purposes of this provision, "quorum" means more than 50 percent of the owners of an association. Civil Code §1366(a).

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