Special Assessment Notification

TomP11 (California)
Posts: 113

Posted:

Does the board have to send out a notification for the special assessment? I haven't received anything in the mail and someone of my neighbors haven't received a notification either. The only reason I know about it is because I attended the normal meeting. It is due August first and I would like to know the final amount and how to pay it. Granted I am just going to ask my neighbor who has received the letter the total. But it is unfortunate for the people who aren't in the loop.

JackieB4 (California)
Posts: 398

Posted:

Quote:

Posted By TomP11 on 06/26/2024 10:57 AM
Does the board have to send out a notification for the special assessment? I haven't received anything in the mail and someone of my neighbors haven't received a notification either. The only reason I know about it is because I attended the normal meeting. It is due August first and I would like to know the final amount and how to pay it. Granted I am just going to ask my neighbor who has received the letter the total. But it is unfortunate for the people who aren't in the loop.

Tom, google Davis-Stirling.com for "special assesments" and see if this answers your question. Maybe the special assessment is only meant for your neighbor? It's always best to READ the actual document sent, if possible. Good luck.

SheliaH (Indiana)
Posts: 6,964

Posted:

It was mentioned at the meeting, but was there a formal vote approving this? What do your documents say about special assessments (read them if you don't know). It could be the board members were simply discussing this - is it possible you misunderstood? Have you asked a board member to clarify what you heard? Had there been talk of a special assessment prior to this meeting - what do your board meeting minutes say (have you read them?)

For now, don't worry about this unless you receive a bill in the mail. By then you should have already read your documents to see what it says - and I'm sure some sort of advance notice IS required along with a homeowner vote stating X percentage of homeowners have to approve. If that didn't happen, you need to attend the next meeting and demand answers before you pay anything.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

KerryL1 (California)
Posts: 14,550

Posted:

First, Shelia is correct, your CC&Rs will have one or more sections on s special assessments. Look at the sort of Table of Contents near the beginning to find these. But they must comply with Cal Civ. Code that Jackie references. In particular:

https://www.davis-stirling.com/HOME/S/SpecialAssessments

BOARD APPROVED ASSESSMENTS
“5% Limitation. By statute, HOA boards of directors are allowed to special assess the membership up to 5% of the current fiscal year's budgeted gross expenses without membership approval,....(Civ. Code § 5605(b).)...."

...“Notice Requirement. Once an assessment has been approved, proper notice of the increased assessment must be given to the membership .... not less than 30 nor more than 60 days before the assessment is due. (Civ. Code § 5615.)"

If available, read the approved minutes of that regular open meeting, Tom, to see what the Board approved and for when. Or contact your HOA’s manager or appropriate Board member and politely insist on written notice.

TerriS6 (California)
Posts: 3,284

Posted:

Notice Requirement
An association is required to provide its members with individual notice of any increase in the regular or special assessments not less than thirty (30) days nor more than sixty (60) days prior to the increased assessment becoming due. (Civ. Code § 5615.) When an emergency assessment is levied for an unforeseen extraordinary expense pursuant to Civil Code Section 5610(c), the notice of assessment must also include a copy of the resolution passed by the board explaining the justification for levying the emergency assessment. (Civ. Code § 5610(c); See also “Emergency Assessments.”)

Findhoalaw.com

TerriS6 (California)
Posts: 3,284

Posted:

Quote:

Posted By TomP11 on 06/26/2024 10:57 AM
Does the board have to send out a notification for the special assessment? I haven't received anything in the mail and someone of my neighbors haven't received a notification either. The only reason I know about it is because I attended the normal meeting. It is due August first and I would like to know the final amount and how to pay it. Granted I am just going to ask my neighbor who has received the letter the total. But it is unfortunate for the people who aren't in the loop.

Individual notice is required.

TomP11 (California)
Posts: 113

Posted:

It is to all of us

TomP11 (California)
Posts: 113

Posted:

Quote:

Posted By TerriS6 on 06/26/2024 8:05 PM

Posted By TomP11 on 06/26/2024 10:57 AM
Does the board have to send out a notification for the special assessment? I haven't received anything in the mail and someone of my neighbors haven't received a notification either. The only reason I know about it is because I attended the normal meeting. It is due August first and I would like to know the final amount and how to pay it. Granted I am just going to ask my neighbor who has received the letter the total. But it is unfortunate for the people who aren't in the loop.

Individual notice is required.

They put it on the website so I guess that counts?

TomP11 (California)
Posts: 113

Posted:

Quote:

Posted By KerryL1 on 06/26/2024 7:32 PM
First, Shelia is correct, your CC&Rs will have one or more sections on s special assessments. Look at the sort of Table of Contents near the beginning to find these. But they must comply with Cal Civ. Code that Jackie references. In particular:

https://www.davis-stirling.com/HOME/S/SpecialAssessments

BOARD APPROVED ASSESSMENTS
“5% Limitation. By statute, HOA boards of directors are allowed to special assess the membership up to 5% of the current fiscal year's budgeted gross expenses without membership approval,....(Civ. Code § 5605(b).)...."

...“Notice Requirement. Once an assessment has been approved, proper notice of the increased assessment must be given to the membership .... not less than 30 nor more than 60 days before the assessment is due. (Civ. Code § 5615.)"

If available, read the approved minutes of that regular open meeting, Tom, to see what the Board approved and for when. Or contact your HOA’s manager or appropriate Board member and politely insist on written notice.

It is well over 5%. The only people who voted for it was the board. I am not mad about it but I wish they would have planned it before hand. Everyone knew about insurance for the past 3 years. They could have done the special assessment at the beginning of the year and had us pay an extra $100 a month instead of coming up with $10k in 30 days.

MarshallT (New York)
Posts: 414

Posted:

If the assessment is for every member, some sort of notice should be provided so that you have time to get the funds ready. I would suggest reaching out to the board or HOA manager for more information.

TerriS6 (California)
Posts: 3,284

Posted:

See Civil Code sections 5605 and 5610.
Unless this was an emergency assessment, the board acted illegally. Even if an emergency there are requirements.
One option would be to pay the special assessment "under protest" (civ code 5658) then take your association to small claims court for a refund and to void the special assessment.

TerriS6 (California)
Posts: 3,284

Posted:

Quote:

Posted By TomP11 on 06/27/2024 8:11 PM

Posted By TerriS6 on 06/26/2024 8:05 PM

Posted By TomP11 on 06/26/2024 10:57 AM
Does the board have to send out a notification for the special assessment? I haven't received anything in the mail and someone of my neighbors haven't received a notification either. The only reason I know about it is because I attended the normal meeting. It is due August first and I would like to know the final amount and how to pay it. Granted I am just going to ask my neighbor who has received the letter the total. But it is unfortunate for the people who aren't in the loop.

Individual notice is required.

They put it on the website so I guess that counts?

No, it does not count. Putting it on the website is called "general notice." "Individual notice" means they have to send something to EACH member either by mail or email, if member has requested email notice.

TerriS6 (California)
Posts: 3,284

Posted:

CIVIL CODE SECTION 4040. NOTICE OR DELIVERY TO INDIVIDUALS.
(a)

(1) If a provision of this act requires an association to deliver a document by “individual delivery” or “individual notice,” the association shall deliver that document in accordance with the preferred delivery method specified by the member pursuant to Section 4041.

(2) If the member has not provided a valid delivery method pursuant to Section 4041, the association shall deliver the document by first-class mail, registered or certified mail, express mail, or overnight delivery by an express service carrier addressed to the recipient at the address last shown on the books of the association.

(b) Upon receipt of a request by a member identifying a secondary email or mailing address for delivery of notices, pursuant to Section 5260, the association shall deliver an additional copy of both of the following to the secondary address identified in that request:

(1) The documents to be delivered to the member pursuant to Article 7 (commencing with Section 5300) of Chapter 6.

(2) The documents to be delivered to the member pursuant to Article 2 (commencing with Section 5650) of Chapter 8 and Section 5710.

(c) For the purposes of this section, an unrecorded provision of the governing documents providing for a particular method of delivery does not constitute agreement by a member to that method of delivery.

(d) This section shall become operative on January 1, 2023.

TerriS6 (California)
Posts: 3,284

Posted:

You could write a letter to the board explaining their actions were not lawful and they will have to hold an election. Then if they refuse, you could either ask for Internal Dispute Resolution or just go to small claims court.

KerryL1 (California)
Posts: 14,550

Posted:

Terri is right, a special assessment approved by the Board must not be over 5%. Once again, read your CC&Rs and then the citations provided.

Are you certain, Tom, That the special assessment is more than 5% of your HOA's budgeted gross expenses for this year? Can you show us that budget $$$ number for this year?

No, posting on the website alone is not suffiicient in Calif. to notify ownrs of this special assessment.

TomP11 (California)
Posts: 113

Posted:

Quote:

Posted By MarshallT on 06/28/2024 6:39 AM
If the assessment is for every member, some sort of notice should be provided so that you have time to get the funds ready. I would suggest reaching out to the board or HOA manager for more information.

I asked around, not everyone received it.

TomP11 (California)
Posts: 113

Posted:

Quote:

Posted By KerryL1 on 06/28/2024 9:13 AM
Terri is right, a special assessment approved by the Board must not be over 5%. Once again, read your CC&Rs and then the citations provided.

Are you certain, Tom, That the special assessment is more than 5% of your HOA's budgeted gross expenses for this year? Can you show us that budget $$$ number for this year?

No, posting on the website alone is not suffiicient in Calif. to notify ownrs of this special assessment.

Here is the revised copy of the budget they did mid year. As I was looking at it the revised budget calls for $675k for insurance and right now for this year the insurance cost us $145k.

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ElleN (Idaho)
Posts: 4,420

Posted:

Quote:

Posted By TomP11 on 06/27/2024 8:19 PM

It is well over 5%. The only people who voted for it was the board. I am not mad about it but I wish they would have planned it before hand. Everyone knew about insurance for the past 3 years. They could have done the special assessment at the beginning of the year and had us pay an extra $100 a month instead of coming up with $10k in 30 days.

Quote:

Posted By TomP11 on 06/29/2024 12:46 PM

Here is the revised copy of the budget they did mid year. As I was looking at it the revised budget calls for $675k for insurance and right now for this year the insurance cost us $145k.

First: Oh my gosh.

Second: Yet this forum has seen reports of crazy increases in insurance in the last 18 months.

Third: I feel terrible for these all-volunteer boards having to either (a) scramble to raise the money to pay for these insurance premiums; or (b) do the obscene, oxymoronic thing and attempt to self-insure.

Fourth: Yes, a board needs to do notice right. But I would be more sympathetic than you seem to be. (Or maybe I am misreading you?). Would you want to be on this board and dealing with this massive insurance increase? Keep in mind these folks on the board are not paid.

KerryL1 (California)
Posts: 14,550

Posted:

Thanks for your 2024 “revised budget” of 3/24, which notifies owners of a 20% increase over last year's operating budget, and is the limit in CA for one year.

About halfway down the memo, which appears to have been written by your management co. (MC), a reference is made to exploring an emergency special assessment. But that’s the only info we have.

You claim the Board did approve a special assessment at a regular board meeting. When was this meeting??? As you MC points out, you can request a copy of the meeting minutes which I advised above.* And the minutes say each owners owes an additional 10K this year for an emergency special assessment?

This will be an additional monthly amount above the monthly dues that were in the March memo? Or a one-time sum?? It appears this emergency special assessment is needed to fund reserves for repair/replace of some reserves components (+ more insurance?). An emergency assessment can be more than 5% of th (new) gross annual budget and requires no vote by ownrs.

As I & others advise, contact your MC and request a copy of the notice of the emergency special assessment, what it’s for, and when is it due? Your MC via your Board’s direction definitely should give each owner proper written notice of the details of this emergency special assessment. There really is no excuse for the Board/MC to not timely notify owners. But….I wouldn't advise paying under protest and/or taking any further steps if you can get the correct info from the MC.

*Pretty chintzy of your MC to charge for minutes when they simply can be posted on your HOA's website.

TomP11 (California)
Posts: 113

Posted:

Quote:

Posted By ElleN on 06/29/2024 1:01 PM

Posted By TomP11 on 06/27/2024 8:19 PM

It is well over 5%. The only people who voted for it was the board. I am not mad about it but I wish they would have planned it before hand. Everyone knew about insurance for the past 3 years. They could have done the special assessment at the beginning of the year and had us pay an extra $100 a month instead of coming up with $10k in 30 days.

Quote:

Posted By TomP11 on 06/29/2024 12:46 PM

Here is the revised copy of the budget they did mid year. As I was looking at it the revised budget calls for $675k for insurance and right now for this year the insurance cost us $145k.

First: Oh my gosh.

Second: Yet this forum has seen reports of crazy increases in insurance in the last 18 months.

Third: I feel terrible for these all-volunteer boards having to either (a) scramble to raise the money to pay for these insurance premiums; or (b) do the obscene, oxymoronic thing and attempt to self-insure.

Fourth: Yes, a board needs to do notice right. But I would be more sympathetic than you seem to be. (Or maybe I am misreading you?). Would you want to be on this board and dealing with this massive insurance increase? Keep in mind these folks on the board are not paid.

I am good because I knew about it by attending the monthly meeting But not everyone on the community knows about it.

TomP11 (California)
Posts: 113

Posted:

Quote:

Posted By KerryL1 on 06/29/2024 5:52 PM
Thanks for your 2024 “revised budget” of 3/24, which notifies owners of a 20% increase over last year's operating budget, and is the limit in CA for one year.

About halfway down the memo, which appears to have been written by your management co. (MC), a reference is made to exploring an emergency special assessment. But that’s the only info we have.

You claim the Board did approve a special assessment at a regular board meeting. When was this meeting??? As you MC points out, you can request a copy of the meeting minutes which I advised above.* And the minutes say each owners owes an additional 10K this year for an emergency special assessment?

This will be an additional monthly amount above the monthly dues that were in the March memo? Or a one-time sum?? It appears this emergency special assessment is needed to fund reserves for repair/replace of some reserves components (+ more insurance?). An emergency assessment can be more than 5% of th (new) gross annual budget and requires no vote by ownrs.

As I & others advise, contact your MC and request a copy of the notice of the emergency special assessment, what it’s for, and when is it due? Your MC via your Board’s direction definitely should give each owner proper written notice of the details of this emergency special assessment. There really is no excuse for the Board/MC to not timely notify owners. But….I wouldn't advise paying under protest and/or taking any further steps if you can get the correct info from the MC.

*Pretty chintzy of your MC to charge for minutes when they simply can be posted on your HOA's website.

They brought it up last meeting which was the second Thursday of June and it is due all at once August 1st with the normal dues according to the posting on the website. They let some of the members know last Friday. That is when my neighbor across the street got his letter. My next door neighbor didn't receive a letter or my other neighbor didn't receive a letter either.

KerryL1 (California)
Posts: 14,550

Posted:

Once again, here's Terri's citation:

"Notice Requirement
An association is required to provide its members with individual notice of any increase in the regular or special assessments not less than thirty (30) days nor more than sixty (60) days prior to the increased assessment becoming due. (Civ. Code § 5615.) When an emergency assessment is levied for an unforeseen extraordinary expense pursuant to Civil Code Section 5610(c), the notice of assessment must also include a copy of the resolution passed by the board explaining the justification for levying the emergency assessment. (Civ. Code § 5610(c); See also “Emergency Assessments.”)"
Findhoalaw.com,

I agree that for a one-shot $10,000 increase this year, the Board could have been kinder and more considerate of owners by providing "individual notice" to owners at least 60 days, but 30 days is "legal" and they just met on this topic very recently. It appears they're in a hurry and it appears that your reserves have been underfunded for quite a long time. This could have been due to previous ignorant or careless Boards. That reserves issue combined with this horrid insurance increase seems to require these drastic steps.

No question it'll be hard on some of your friends & neighbors.