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"Steve Cerruti" <steve_cerruti@yahoo.com> wrote in message
news:1135255676.698518.162910@f14g2000cwb.googlegroups.com...
> Suing for return of the increase in the assessment since the board had
> no authority to increase the assessment at this time without member
> approval.
Are you saying that member approval is needed every time a modest fee
increase is levied? I'm no expert, but I find that very hard to believe
since most HOA's do not have that restriction. From California's
Davis-Sterling Act:
"(a) Except as provided in this section, the association shall levy regular
and special assessments sufficient to perform its obligations under the
governing documents and this title. However, annual increases in regular
assessments for any fiscal year, as authorized by subdivision (b), shall not
be imposed unless the board has complied with subdivision (a) of Section
1365 with respect to that fiscal year, or has obtained the approval of
owners, constituting a quorum...."
So California law does provide for increases without member votes. So is
the whole argument here that the fees are increased during the start of the
calander year instead of the fiscal year?
In most states you need damages to sue in small claims court. What are the
damages here? That he doesn't like fee increases is bizarre, given the
realities costs of the physical community that he chose to live in.
> The law was passed to force association boards to do business
> correctly. That is to create budgets that accurately reflect the costs
> of the association and to compute assessments accordingly. If the
> association needs a mid-term assessment increase to cover an unexpected
> increase in operating costs there is a process by which it can be
> accomplished but it has to be transparent and approved by the
> membership.
I remain sceptical that it must be approved by the membership. I also remain
suspicious that Sub has never seen a budget.
> Operating outside of those terms says that the association is being
> managed poorly and the need for the assessment is suspect. It should
> immediately trigger a full audit of the association books to determine
> why the board has failed to create a budget that works, to determine if
> the assessment is necessary and to ensure that no hanky-panky is going
> on.
I do not see any evidence of any of this.
> The size of the increase is irrelevant, the point is that the member
> has a right to know how their money is being spent. That is
> accomplished by distributing the budget. How can a homeowner know where
> the money goes for an assessment increase that isn't covered in the
> budget? It isn't too much to ask to have the board get member approval.
And no budget has been distributed in the last year?
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