Below is a helpful tip from the Davis-Stirling.com Newsletter by ADAMS | STIRLING PLC regarding . . .
Increasing HOA dues?
QUESTION: If our CC&Rs state a maximum annual increase of 10%, can the board raise them 20% based on the Davis-Stirling Act?
ANSWER: Yes they can. Notwithstanding more restrictive limitations in the governing documents, boards of directors may increase regular assessments (dues) up to 20% of the association’s preceding fiscal year without membership approval. (Civ. Code §5605.) The failures by some boards to keep their association’s budgets current with rising costs often forces future boards into the uncomfortable position of significant assessment increases. Thus, the 20% override established by the legislature.
For more knowledgeable information regarding the business of HOA’s, visit: The Davis-Stirling.com Newsletter