Question:
Can an HOA board vote to raise dues 10% a year each year for 10 years without a vote of the homeowner?
– David
Answer:
Hi David,
According to California Civil Code Section 5605, an HOA board can impose a dues increase of up to 20% of the preceding fiscal year’s dues. Anything more than 20% requires a vote of approval from a majority of a quorum of members.
Subsection (b) specifically states: “Notwithstanding more restrictive limitations placed on the board by the governing documents, the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the association’s preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.”
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