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Under the Davis-Stirling Act, a California HOA wants to increase regular monthly assessments by 25% for the upcoming year. What approval is required?

Correct Answer

C) The increase requires the approval of a majority of a quorum of the members

Civil Code §5605(b) lets the board impose a regular assessment up to 20 percent greater than the regular assessment for the preceding fiscal year on its own authority. To go beyond that, the board needs the approval of a majority of a quorum of the members voting under §4070, and a quorum for this purpose means more than 50 percent of the members. A 25 percent increase clears the 20 percent line, so the membership vote is required. Nothing caps the increase absolutely; the statute simply sets the point at which the members, rather than the board, decide.

Answer Options
A
The board of directors may approve the increase without any member approval
B
The increase requires the approval of two-thirds of all members of the association
C
The increase requires the approval of a majority of a quorum of the members
D
The increase is prohibited outright because it exceeds the statutory ceiling

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Related Topics & Key Terms

Key Terms:

HOAassessment_increase20_percent_capmember_voteCivil_Code_5605

Related Concepts

Restrictive covenants, also known as CC&Rs (Covenants, Conditions & Restrictions), are private agreements written into deeds or HOA documents that limit how property can be used. They are enforced by property owners, not the government.

Setback requirements are zoning regulations that specify the minimum distance a building or structure must be set back from property lines, streets, or other boundaries. They ensure adequate light, air, and space between structures.

Spot zoning is an illegal or improper rezoning of a small parcel of land that is inconsistent with the surrounding zoning and the comprehensive plan. It benefits an individual owner rather than the community as a whole.

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