DUES - ASSESSMENTS

SECTION 5600-5625

5600.  (a) Except as provided in Section 5605, the association shall
levy regular and special assessments sufficient to perform its
obligations under the governing documents and this act.
   (b) An association shall not impose or collect an assessment or
fee that exceeds the amount necessary to defray the costs for which
it is levied.

5605.  (a) Annual increases in regular assessments for any fiscal
year shall not be imposed unless the board has complied with
paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b)
of Section 5300 with respect to that fiscal year, or has obtained the
approval of a majority of a quorum of members, pursuant to Section
4070, at a member meeting or election.
   (b) Notwithstanding more restrictive limitations placed on the
board by the governing documents, the board may not impose a regular
assessment that is more than 20 percent greater than the regular
assessment for the association's preceding fiscal year or impose
special assessments which in the aggregate exceed 5 percent of the
budgeted gross expenses of the association for that fiscal year
without the approval of a majority of a quorum of members, pursuant
to Section 4070, at a member meeting or election.
   (c) For the purposes of this section, "quorum" means more than 50
percent of the members.

5610.  Section 5605 does not limit assessment increases necessary
for emergency situations. For purposes of this section, an emergency
situation is any one of the following:
   (a) An extraordinary expense required by an order of a court.
   (b) An extraordinary expense necessary to repair or maintain the
common interest development or any part of it for which the
association is responsible where a threat to personal safety on the
property is discovered.
   (c) An extraordinary expense necessary to repair or maintain the
common interest development or any part of it for which the
association is responsible that could not have been reasonably
foreseen by the board in preparing and distributing the annual budget
report under Section 5300. However, prior to the imposition or
collection of an assessment under this subdivision, the board shall
pass a resolution containing written findings as to the necessity of
the extraordinary expense involved and why the expense was not or
could not have been reasonably foreseen in the budgeting process, and
the resolution shall be distributed to the members with the notice
of assessment.

5615.  The association shall provide individual notice pursuant to
Section 4040 to the members of any increase in the regular or special
assessments of the association, not less than 30 nor more than 60
days prior to the increased assessment becoming due.

5620.  (a) Regular assessments imposed or collected to perform the
obligations of an association under the governing documents or this
act shall be exempt from execution by a judgment creditor of the
association only to the extent necessary for the association to
perform essential services, such as paying for utilities and
insurance. In determining the appropriateness of an exemption, a
court shall ensure that only essential services are protected under
this subdivision.
   (b) This exemption shall not apply to any consensual pledges,
liens, or encumbrances that have been approved by a majority of a
quorum of members, pursuant to Section 4070, at a member meeting or
election, or to any state tax lien, or to any lien for labor or
materials supplied to the common area.

5625.  (a) Except as provided in subdivision (b), notwithstanding
any provision of this act or the governing documents to the contrary,
an association shall not levy assessments on separate interests
within the common interest development based on the taxable value of
the separate interests unless the association, on or before December
31, 2009, in accordance with its governing documents, levied
assessments on those separate interests based on their taxable value,
as determined by the tax assessor of the county in which the
separate interests are located.
   (b) An association that is responsible for paying taxes on the
separate interests within the common interest development may levy
that portion of assessments on separate interests that is related to
the payment of taxes based on the taxable value of the separate
interest, as determined by the tax assessor.