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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 approval by a majority of the HOA members because it exceeds 20%

Under California Civil Code §5605, the HOA board can increase regular assessments by up to 20% without member approval. Any increase exceeding 20% requires approval by a majority of the HOA members (a membership vote). Since the proposed 25% increase exceeds the 20% threshold, a membership vote is required.

Answer Options
A
The board of directors can approve the increase without member approval
B
The increase requires approval by a majority vote of the HOA members
C
The increase requires approval by a majority of the HOA members because it exceeds 20%
D
The increase is automatically prohibited because it exceeds the statutory cap

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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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