May an HOA or Condo Board Raise Dues Each Year? How Much?

`Here is a simple question from a reader:

“What is the maximum an HOA can raise dues each year?”

In California, a board can raise the assessments up to 20% each year without a vote of the members. It can impose a special assessment of up to 5% of the budgeted gross operating expenses for the fiscal year, without a vote of the members. It can impose an “emergency assessment’ in certain circumstances without a vote. If a vote of the members is needed, Civil Code Section 1366(b) explains the percentage required and (c) explains when an emergency assessment is appropriate and what needs to be done to impose one.

These statutes can be found via the link to The Davis Stirling Act on my website at www.californiacondoguru.com. Additionally, there is a Primer called Assessments – Basic available in the webstore that contains a lot of information about determining assessments including the limitations.

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