Emergency Assessments with No Reserve Account

Started by HoaP2 • 3 replies • 108 views

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HoaP2 (California)
Posts: 9

Posted:

Hello HOATalk,

I just recently became the HOA President for a very small HOA Community in California of 3 townhomes and there is a safety hazard with an out-of-code SubPump that sits in a drainage pit on one driveway and is the main and only pump support for the other 2 driveway drainage pits. All the pits have pipe connectivity underground into the pit with the Sub Pump then there is a small pipe run that pump release water out into the street/curb.

The cord of the sub pump is exposed and runs across the driveway and plugs into a GFI outlet. To be code complaint the cord needs to be run underground in PVC piping which will require cement cutting, and then have an on/off switch installed on the wall next to the garage door. The length of the cement cut is only about 15ft.

The 2nd emergency assessment is that there are 2 trees that have not been trimmed in many years and are up against the wall of our building as well a number of large branches hanging over our roof and the neighbors roof. These trees can greatly affect our building insurance getting cancelled.

The situation is that the HOA has no Reserve Account. Question is: Can all homeowners be asked to pay their portion of the costs split 3 ways for these Emergency Assessments without a majority vote? What is the correct course of action?

Thank you in advance for any helpful guidance.

HOA President

ElleN (Idaho)
Posts: 1,335

Posted:

Davis-Stirling statute requires either a board vote or an owners' vote. Which it is depends on the details. Either way, with only three townhomes, you do not have the votes to impose a special emergency assessment. I doubt your bylaws or covenants offer any other direct, seamless options.

What you can do is go to court; show the judge that the covenants require that the HOA maintain the common areas; and get a court order to enforce the covenants. You would bring a "derivative suit." The latter means you sue on behalf of the corporation, because the board refuses to do its duties and so is hurting the corporation.

I am writing this off the top of my head, but based on over 15 years of observing HOA litigation up close and personal; serving on boards; and reading HOA case law and statutes.

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By HoaP2 on 04/06/2025 6:03 PM
Hello HOATalk,

I just recently became the HOA President for a very small HOA Community in California of 3 townhomes and there is a safety hazard with an out-of-code SubPump that sits in a drainage pit on one driveway and is the main and only pump support for the other 2 driveway drainage pits. All the pits have pipe connectivity underground into the pit with the Sub Pump then there is a small pipe run that pump release water out into the street/curb.

The cord of the sub pump is exposed and runs across the driveway and plugs into a GFI outlet. To be code complaint the cord needs to be run underground in PVC piping which will require cement cutting, and then have an on/off switch installed on the wall next to the garage door. The length of the cement cut is only about 15ft.

The 2nd emergency assessment is that there are 2 trees that have not been trimmed in many years and are up against the wall of our building as well a number of large branches hanging over our roof and the neighbors roof. These trees can greatly affect our building insurance getting cancelled.

The situation is that the HOA has no Reserve Account. Question is: Can all homeowners be asked to pay their portion of the costs split 3 ways for these Emergency Assessments without a majority vote? What is the correct course of action?

Thank you in advance for any helpful guidance.

HOA President

I don’t know how you bought into this mess, but I would sell. The reason is simple. Without logical decisions by the other 2 owners, your property value will decline. At some point you are going to have to go through this again of roof replacement and a host of much more expensive repairs than you have listed.

Neither item is a very expensive divided by 3. If they are unwilling to pay for this, run.

TimB4 (Tennessee)
Posts: 21,060

Posted:

In my opinion, yes.

The sump pump serves all, so all should pay.
If the trees are on Association property, then again, all should pay.

It will be unpopular, but your assessments need to be raised if you don't have enough to fund reserves or maintain the property (tree trimming as needed is considered regular maintenance).

When my last Association did their first reserve study, we needed to raise assessments by 20%.

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