Last updated: October 2026
A board’s authority to raise assessments is capped by statute, not by the CC&Rs. Regular assessments cannot increase more than 20 percent over the preceding year, and special assessments cannot exceed 5 percent of budgeted gross expenses in aggregate, without member approval — and those limits apply regardless of anything more permissive in the governing documents. On the collection side, a lien recorded without the correct pre-lien notice is unenforceable and creates liability rather than recovery. Bay Legal, P.C. advises California boards on levying assessments that hold up and collecting them lawfully.
Definition: A regular assessment funds the annual operating budget and reserves. A special assessment is levied for a specific purpose outside that budget.
How much can you raise assessments without a member vote?
| Assessment type | Board may impose without member approval | Authority |
|---|---|---|
| Regular assessment increase | Up to 20 percent over the preceding fiscal year | Civ. Code § 5605(b) |
| Special assessments | Up to 5 percent of budgeted gross expenses, in aggregate for the fiscal year | Civ. Code § 5605(b) |
| Above either threshold | Requires approval of a majority of a quorum — more than 50 percent of members | Civ. Code § 5605(b)–(c) |
| Emergency assessment | No member approval required, on defined grounds only | Civ. Code § 5610 |
Two conditions attach to the board’s authority even below the caps. Under Civil Code section 5605(a), the board cannot increase a regular assessment at all unless it has complied with the annual budget disclosure requirements in section 5300 — so a missed budget distribution invalidates an increase the board was otherwise entitled to make. And where a member vote is required, it must be by secret ballot under section 5100.
The caps override the governing documents in both directions. A more restrictive limit in the CC&Rs does not expand board authority, and a more permissive one does not either. Associations relying on a declaration provision that predates the statute are the ones most often caught.
When can you levy an emergency assessment?
On three grounds only, under Civil Code section 5610: an extraordinary expense required by court order; an extraordinary expense necessary to address a threat to personal safety or a hazardous condition; or an extraordinary expense that could not reasonably have been foreseen in the budgeting process.
The third ground is the one boards reach for and the one most often challenged. It requires a board resolution containing written findings explaining why the expense was necessary and why it could not have been anticipated, distributed to members with the assessment notice. A resolution that asserts unforeseeability without explaining it is the weak point.
Deferred maintenance is not unforeseeable. A roof that has been failing for five years, or a reserve study that predicted the expense, undermines the finding — and the members challenging the assessment will have the reserve study.
What is the collection sequence?
- Deliver the annual policy statement setting out the collection and dispute resolution policies. This is a prerequisite that boards routinely overlook.
- Send the pre-lien notice. Under Civil Code section 5660, written notice by certified mail at least 30 days before recording a lien, itemising the amount owed, describing the collection and lien procedures, and stating the owner’s right to dispute the debt and to request a payment plan.
- Offer internal dispute resolution. The owner may request IDR, and the association must participate.
- Consider a payment plan. The board must meet to discuss a requested payment plan, and doing so is frequently cheaper than the alternative.
- Approve the lien at a board meeting. By recorded vote in open session — a lien authorised informally is vulnerable.
- Record the lien under Civil Code section 5675, with the itemised statement and notice to the owner.
- Foreclose only within the statutory limits — see below.
Each step is a prerequisite to the next. A lien recorded without a compliant pre-lien notice is unenforceable, and the association may be required to reverse the fees, costs, and interest charged. The collection effort then costs money rather than recovering it.
When can you foreclose?
Rarely, and only within statutory thresholds. California restricts foreclosure over delinquent regular assessments by both the amount owed and the time elapsed, and an association cannot foreclose over a small balance however long it has been outstanding.
Beyond the thresholds, judicial and non-judicial routes each carry their own requirements, and the decision to foreclose on a home over unpaid dues attracts scrutiny that other collection steps do not. Most associations that reach this point recover through a payment plan, a lien that resolves on sale, or a small claims judgment, and reserve foreclosure for substantial and prolonged delinquency.
What makes a lien fail?
- No compliant pre-lien notice — wrong method, wrong timing, or missing the required content.
- No board vote in open session authorising the lien.
- Charges that were never validly levied — an increase above the cap without member approval, or one imposed without the budget disclosure.
- Fines rolled in as assessments. Fines are treated differently for lien purposes, and including them can taint the lien.
- Ignoring a payment plan request or an IDR request before proceeding.
The consequence is not merely a failed collection. An improperly recorded lien clouds the owner’s title, and an association that records one exposes itself to a claim and to the owner’s attorney fees.
Who advises boards at Bay Legal?
Managing attorney Jayson R. Elliott leads the firm’s HOA practice. Lead litigation attorney Evan Livingstone heads the litigation group, which handles contested collection and foreclosure. Clarence Olson practises in real estate law.
Scope. Bay Legal, P.C. represents both associations and homeowners, though never both sides of the same dispute. Acting for homeowners means the firm knows which collection steps get challenged and on what grounds, which is useful when taking them.
Bay Legal, P.C. serves associations statewide from offices in Palo Alto and Los Angeles.
Frequently Asked Questions
How much can we raise regular assessments without a vote?
Up to 20 percent over the preceding fiscal year under Civil Code section 5605(b), and only if the board has complied with the annual budget disclosure requirements in section 5300. Above 20 percent requires approval of a majority of a quorum, meaning more than 50 percent of members, by secret ballot.
What is the limit on special assessments?
In aggregate, 5 percent of the association’s budgeted gross expenses for the fiscal year without member approval. Above that, a majority of a quorum must approve. The cap applies regardless of anything more permissive in the governing documents, which is where associations relying on older declarations get caught.
When can we levy an emergency assessment?
On three grounds under Civil Code section 5610: an expense required by court order, one necessary to address a safety threat or hazardous condition, or an extraordinary expense that could not reasonably have been foreseen. The third requires a board resolution with written findings, distributed with the notice. Deferred maintenance is not unforeseeable.
What notice must we give before recording a lien?
A pre-lien notice under Civil Code section 5660, sent by certified mail at least 30 days beforehand, itemising the amount owed, describing the collection and lien procedures, and stating the owner’s right to dispute the debt and request a payment plan. A lien recorded without it is unenforceable.
Can we foreclose on an owner who will not pay?
Only within statutory thresholds limiting foreclosure by both the amount owed and the time delinquent. An association cannot foreclose over a small balance however long it has been outstanding. Most associations recover through a payment plan, a lien that resolves on sale, or a small claims judgment instead.
What happens if we get the collection process wrong?
The lien is unenforceable and the association may have to reverse the fees, costs, and interest charged. An improperly recorded lien also clouds the owner’s title, which exposes the association to a claim and to the owner’s attorney fees. The collection effort then costs money rather than recovering it.
Related Questions
Must we accept a payment plan?
The board must meet to consider a requested plan. It is not obliged to agree any particular terms, but refusing without consideration is a point an owner will raise later.
Can we charge late fees and interest?
Within statutory limits and only where the governing documents provide. Charges beyond what is authorised can taint the entire lien.
Does a lien survive a sale?
A properly recorded lien generally must be resolved before clear title passes, which is why many delinquencies resolve at sale rather than through foreclosure.
Can we assess only some owners for a repair?
Only if the governing documents allocate the cost that way. Assessments must follow the allocation in the declaration, not the board’s view of who benefits.
Talk to a California HOA attorney
An assessment levied above the cap without member approval is void, and a lien recorded without proper notice creates liability rather than recovery. To review an assessment increase or a collection programme, call the office nearest you or email intake.
Bay Legal, P.C. — serving California statewide
Northern California office
667 Lytton Ave Ste 3, Palo Alto, CA 94301
(650) 668-8000
Southern California office
3211 Cahuenga Blvd W Ste 212, Los Angeles, CA 90068
(213) 668-8000
Intake: intake@baylegal.com
Fax: (650) 963-0041
Website: https://baylegal.com
This page is general information about California law and does not constitute legal advice or create an attorney-client relationship. For advice on your specific situation, contact a licensed California attorney.