Assessment Types. There are four types of assessments:
Regular. Regular assessments are determined by the board during the annual budgeting process to cover normal operations for the association. They are normally paid monthly or quarterly. Boards cannot increase regular assessments more than 20% without membership approval.
Special. Special assessments levied against the membership are often needed for unexpected expenses or capital improvements.
a. Board Approved. If the assessment is 5% or less of the annual budget, the assessment can be approved by the board.
b. Membership Approved. If the assessments is more than 5% of the annual budget, it must be approved by the membership. (Civ. Code §5605(b).)
c. Emergency. Emergency special assessments do not have a cap and do not need membership approval if it meets statutory requirements for an emergency.
Reimbursement. Reimbursement assessments are most often used to reimburse the association for expenses
incurred repairing common areas damaged by members or
their guests or tenants.
are treated differently than assessments. They are most often imposed against one or more owners for goods and services such as parking stickers, remotes, keys, cable tv, etc. They are limited to the amount necessary to defray the costs for which they are levied.
: Associations needing legal assistance can contact us
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