Understanding Civil Code § 5605: Assessment Approval Requirements

If you are a member of a homeowners association (HOA), you may have come across the term "Civil Code § 5605" about assessment approval requirements. This part of California law is crucial for how HOAs charge their members. Let's delve into what Civil Code § 5605 involves.

According to Civil Code § 5605(a), an increase in regular fees for the year can't happen unless the HOA board follows certain rules from Section 5300(b). These rules involve:

1. sharing detailed financial statements, 
2. telling members about any fees collected, and 
3. letting them comment on the budget plan. 
4. Another way is for the board to get approval from most of the members at a meeting or election, as stated in Section 4070.

Also, Civil Code § 5605(b) sets boundaries on how much the HOA board can raise regular assessments. They can't make a regular assessment more than 20 percent higher than the previous year's assessment. Plus, special assessments can't surpass 5 percent of the association's budgeted gross expenses for that year. If they want to impose assessments that go beyond these limits, they need approval from most of the members at a meeting, as per Section 4070. 

It's worth noting that, in this context, a "quorum" refers to more than 50 percent of the members of the HOA.

Civil Code § 5605 exists to make sure HOA assessments are fair and transparent. It outlines how boards must talk to members before raising fees, ensuring everyone's financial interests are protected and decisions are made fairly in the association.


As an HOA member, it's important to know Civil Code § 5605. This helps you understand how assessments are approved. When you know this, you can take part in your HOA's decisions and help your community thrive together.