MOVE-IN FEES
Q.
May our homeowners association charge a $500 move-in fee whenever
a new owner moves in?
A.
No. Under California law, an
association may not
impose or collect an assessment or fee that exceeds the amount
necessary to defray the costs
for which it is levied. Top
DISPUTING
ASSESSMENTS
Q.
The management company for our homeowner association has billed
me for assessments that I dispute.
They are constantly making errors. How do I dispute an assessment?
A.
The California Civil Code permits owners, under
certain circumstances, to dispute the imposition of assessments
by their association using alternative dispute resolution. To challenge an assessment,
an owner must:
A.
Pay in full to the association:
1)
The amount of the assessment in dispute;
2)
Late charges;
3)
Interest; and
4) All fees and costs associated with the preparation and filing of a notice of delinquent assessment (lien), including all mailing costs, and including attorney’s fees not to exceed four hundred twenty-five dollars ($425)
B.
State by written notice that the amount is paid under
protest; and,
C. Mail such notice and payment to the association by certified mail not more than thirty days after the recording of the notice of delinquent assessment.
Upon receipt of such notice
(and payment), the association must inform the owner that the
owner may resolve the dispute through alternative dispute resolution,
as set fourth in Civil Code section 1354, civil action or any
other procedure to resolve the dispute that may be available through
the association.
The right of any owner
to dispute the imposition of an assessment may not be exercised
more than two times in any single year, nor more than three times
within any five calendar years.
Top
LAKE MAINTENANCE
ASSESSMENTS
Q.
I live within a large homeowner association that includes a lake
which is surrounded by homes. My home is not within view of the
lake, nor do we use it. It seems unfair for us to be assessed
for the maintenance of the lake when we can’t even see it. Do
we have any recourse?
A.
Other than moving, no. If your CC&Rs ( Covenants, Conditions
and Restrictions) require that you pay a share of the maintenance,
you must do so. It is a contractual obligation you agreed to when
you purchased your home.
Even if you cannot see
the lake or don’t use it for recreational purposes, it is a unique
amenity that increases the value of your property. Top
EQUAL OR
UNEQUAL ASSESSMENTS
Q.
As the owner of a property management company, I’ve noticed that
while most homeowner associations have equal monthly assessments,
some have unequal assessments. How is this determined?
A.
It is determined on the basis of the budget submitted by the developer
and approved by the California Department of Real Estate (DRE).
DRE regulations allow the
use of variable (unequal) assessments only if one unit will derive
as much as ten percent more than another unit in the value of
common goods and services supplied by the association. This calculation
requires a detailed analysis which separates variable costs from
fixed costs.
If you need additional
information, I suggest you obtain a DRE budget worksheet from
the California Department of Real Estate. Top
