New budget item

If the Board is attempting to hire a parking patrol on our private streets and adding about $900.00 expense to a monthly budget income of $4,905 (45 owners x $109.00) do they need to have a special assessment, or increase our dues immediately?
Can they use reserves and not notify the owners?

CCRS
“ In the event that the board at any time determines that the estimate of total charges for the current year is or will become inadequate to meet all Common Expenses for any reason, it shall immediately determine the approximate amount of such inadequacy and issue a supplemental estimate of the common expense and determine a revised amount of Regular Assessments for each member and the dates or dates when due.”

It goes on explaining how you can vote and the allowed percentage of increase allowed.

So the question is can they incur this large expense without a immediate dues increase and just use reserves without informing the owners the cost before they vote to contract with the company.

-- By my reading, this California HOA board can borrow from the reserve fund, as long as the reserve is paid back within a year. See https://www.davis-stirling.com/HOME/Borrowing-from-HOA-Reserves

-- Per the covenant you quoted and California statute, I think the Board should immediately increase the regular assessment to (1) cover the cost of the parking patrol and (2) repay the reserve fund as needed.

-- I would also start with this site to make sure the Board is meeting its obligations regarding a change to the budget: https://www.davis-stirling.com/HOME/Unexpected-Expense#axzz3hxJrmRrD

I think that part refers to the entire budget, so if they wanted to increase the entire budget, I would expect to see something really major, such as emergency repairs to the roofs (if you lived in a high rise condo or townhouses which have common roofs).

It may be the board has moved some things around to allow this without an assessment increase, but because it will be a new expense, you can count on next year's budget to include this line item and the assessments adjusted accordingly. Right now, this looks to be $20 per homeowner - maybe that's reasonable, depending on what else is going on.

Have you asked the board these questions? If not, why not? Look at your previous board meeting minutes - was this discussed? Did the board get estimates for several vendors before settling on this one? Have a majority of homeowners asked for the patrol and are they aware how this will affect the budget?

If they're aware and want this done, you may be in the minority on public opinion - or the board is making assumptions it shoukdnt, which is why you ask the board these questions. If necessary, you may need to remind THEM of what the documents say.

Great questions.
I am a board member against the parking patrol at this point. The only issue is a civil issue going on between 2 homeowners. This issue came up a year ago at a meeting. Of the 45 owners 32 showed up at a meeting and were adamant against this. Board dropped it. Same board but they said they don’t need to ask they can do it.
Side note. At the meeting that owners showed up the board agreed to put committee together of owners to redo parking rules. The committee has spent countless hours revising and are ready to give findings to the board. The board is going ahead with the patrol without hearing from the committee they established.
I am the lone dissenting board vote until we get results and cost under control.
Also is it required to get more than one estimate ? I do not see that in our docs.

Regular assessment

First, I know of no law or covenant that the Board is violating when the Board ignores a committee. Second, in my experience HOA/condo boards ignoring committees is common. Third, I think that this business with the committee is no battle over which a director (especially one in the Board minority) should linger.

The Board could wait until the next budget cycle and put in this new line item. The owners then get the chance to respond to the budget and vote on it. Too many negatives if the Board just does it and sticks it to all of the owners.

Sorry Michael, Owners don't vote on the budget in California.

Given Jill's overall lack of experience, I don't know if those 32 are from separate households or if the 32 include co-owners.

Given my lack of experience...they are 32 separate homeowners. Maybe it's not my lack of experience but the refusal of the majority of the board to follow the rules and the law.I have been fighting this same issue for 17 years.
I like to get a wide variety of opinions and interpretations so I Am diligent in. making sure my suggestions are correct,legal,and serve the best for our community. 😀