INCREASES IN ASSESSMENTS

“How can an association increase annual assessments?”

The board of directors, without member approval, may increase annual assessments up to 20% over the preceding fiscal year and impose special assessments which in the aggregate do not exceed 5% of the association's budgeted gross expenses (or more if an emergency exists necessitating the special assessment). (Civil Code §1366(b)) Members have the authority to approve increases greater than what the board may authorize.

“Are there provisions related to additional assessments or adjustments in the budget or assessment level in the event of a deficit?”

An association is required by statute to levy regular and special assessments adequate to perform its obligations under the CC&Rs and as required by law. (Civil Code §1366(a))