Assessment

Our 4 units HOA assessment included "Gardening service" and Earthquake insurance.
We don't have a garden, potted plants (30-40)along a walkway. "Potted plants" not in a list of "Common Area" in CC&R. Most likely it's a "Owners property".
Earthquake insurance also not on "Board must provide" list of CC&R.
Per CA CC 1355(a) "Board has a duty to impose regular and special assessments sufficient to curry out their duties under CC&R".
Here are my questions:

1.How a HOA Law clarify potted plants: HOA common property or Owners property?

2. Can Board by voting include "gardening service" and Earthquake insurance, or any other service in assessment, if they not listed in CC&R?

I am not in California but there are others that are. Earthquake insurance would be akin to Flood insurance in my area. It is not a requirement to have and it has to be in a flood zone to be offered as an option. Our HOA wasn't in a flood zone but we had 2 or 5 properties flood in the rain. We were able to have those owners determined to be in a zone so they could purchase that insurance if they decided. The HOA did not carry that insurance but would have if the entire property fell into a flood zone.

Due to your set up and possible earthquake insurance requirements I suspect the HOA needs to carry it. A HOA is only funded by it's members for it's members. Splitting this expense between ALL the units lessens everyone's bill.

As far as the plantings it sounds like everyone pitches in for it as well. It probably helps the property look cohesive and limits the crazy stuff owners could be putting out.

Hello JanetB2, thanks for responding.
Regarding "potted plants located in the common area which need to be cared for properly" If I put my coach, TV. fridge in the common area they become HOA property?
CC&R reads that "owners can use plants, trees, grass after Board approval". That sound to me that Plants still Owners property and cannot bi paid by HOA.
Regarding EQ insurance: it not in CC&R list. Listed Fire, Liability. Demolition, Fidelity - if mortgage required. It's expensive, makes dues 30-40% higher. And how is a buying not CC&R item comply with mentioned above CC 1365(a)?
Mike.

Hi JanetB2,
Yes, I'm first time in HOA.

Regarding plants: they been here before I've bought unit.Don't know who put them and when. But legally, I can only refer as CCR stated (see above) as a Owner's property. So for me, not HOA but Owners must pay for gardening service. After Board approval of use.

Regarding EQ insurance. Board must governing HOA Documents: CCR and Bylaw. In CCR: "Board must maintain insurance as required in Article 9."
In Article 9 EQ insurance not listed,therefore cannot be purchased.
Is Board must obey CCR? Or what is a legal base to buy it anyway? As I mentioned CC 1366a "impose assessment ...sufficient under CCR"
And,yes, it more than 20% dues increase, required members voting.
But can this item (EQ Insurance) be included on ballot, if it not comply with CCR?
Thanks.
Mike.

Also Mike you mentioned four units, so you need to check and see if you are governed as a Condo HOA or Planned Community HOA. This is generally referenced in the beginning of the CCR's.

Hi Mike:

I double checked regarding the 20% maximum increase without membership approval and here is another section:

http://www.davis-stirling.com/MainIndexofTopics/RegularAssessmentLimitation/tabid/1426/Default.aspx#axzz1n07tOcoz

20% LIMITATION ON DUES

Notwithstanding more restrictive limitations placed on the board by the governing documents, the board of directors may increase regular assessments (dues) by up to 20% of the association's preceding fiscal year without membership approval. Civil Code §1366(b). The 20% increase is calculated on all budget expenses for the prior year--that includes reserve contributions.

Membership Approval. Regular assessments over 20% require the approval of a majority of a quorum of owners. Civil Code §1366(b). The statute defines "quorum" to mean more than 50% of the owners of an association. The governing documents of an association cannot increase or decrease the approval requirements for membership approval. Any such changes are voided by Civil Code §1366(b). Voting is done by secret ballot.

If they increased 30-40% then you need to insure they have approval from the membership and which must be more than 50% of the owners of the association approving the increase. Here is where as Melissa stated it is you and your neighbors making a decision on what you want to have and are are willing to share the costs regarding your choices. Essentially everyone can choose not to have earthquake insurance and argue that it is not listed in the CCR's along with the fact it increased assessments above the 20% maximum allowed by law OR you choose to have the insurance and pay the increased cost. Welcome to HOA democracy.

Again, I would suggest talking with a few neighbors and getting input as to what they think is the best option and everyone discuss the pro's and con's.

From my own experience...I'd rather split cost 4 ways than 1 way. Working through the HOA to purchase some of these items lessen your costs and burden. Believe me, I used to pay $50 a month for access to lawncare, garbage pickup, pool use, and other necessities when I was in a HOA. Now that I am not...I pay $40 every 2 weeks for lawncare, $15 for garbage pickup, I have to pay a membership fee/pool fee if I want to use a pool, and have to take care of my own maintenance/necessities. I REALLY miss the $50 a month and so what if the flowers are ugly at the front entrance?

Your in a club now and you can't get out. It is a club that is managed by it's members for it's members. Majority rules or in the case of a HOA, whoever willing to attend a meeting or two does...Don't look at the forrest for the trees...There could be a gift horse hiding in there...

What would you say if HOA increase from $170 2005 to $400 2012. $200 just for EQ insurance alone?

Mike

Hi Mike:

I can understand your frustration … I would be willing to bet whomever sold you the home made statements that you don’t need to worry because you just need to agree, follow the CCR, and pay for just the items in the CCR.

While that is true it is not always the whole truth and there are times I would like to kick a few of those tails. Reason being is because then there are individuals in an HOA who did not fully understand the concept and the financial obligation, who potentially are in over their head, and the HOA is left dealing with a possible mess when someone ends up in a bad financial situation.

What they do not tell individuals is the fact that those are also covered by State Laws which also will have to be abided by and can supersede the CCR’s. This is potentially what is happening in your situation because you keep stressing the CCR and I keep stressing state laws.

You stated: $170 2005 to $400 2012

It would appear that the dues increased $230 over a period of 7 (seven) years. Is this per month or per year? Because there are alot of individuals in some HOA’s who pay that amount and sometimes more per Month. If you are only paying $400 per year for a 4 unit townhome/condo please believe that is very reasonable especially when I consider costs in the state of California.

You will have two choices in either to stay and understand with a willingness to work together with your members for everyone's mutual benefit or you can decide to sell and not live in an HOA.