Large assessment increases and special assessments often require membership approval in accordance with Civil Code section 5605. (See also “Limitations on Assessment Increases.”) However, those membership approval requirements do not apply to situations where the assessment increase or special assessment is needed for an “emergency situation,” which includes any of the following:
- Court Order – An extraordinary expense required by an order of a court; (Civ. Code § 5610(a).)
- Personal Health or Safety Threat – An extraordinary expense necessary to operate, repair or maintain the development or any part of it for which the association is responsible where a threat to personal health or safety on the property is discovered; (Civ. Code § 5610(b).)
- Hazardous Condition or Circumstance – An extraordinary expense necessary to operate, repair or maintain the development or any part of it for which the association is responsible where a hazardous condition or circumstdance on the property is discovered; (Civ. Code § 5610(b).)
- Unforeseen Expense – An extraordinary expense necessary to repair or maintain the development or any part of it for which the association is responsible, where such expense “could not have been reasonably foreseen by the board in preparing and distributing the annual budget report under Section 5300.” (Civ. Code § 5610(c).)
Unforeseen Expense; Board Resolution Requirement
Where a board seeks to impose an emergency assessment for an unforeseen expense pursuant to Civil Code section 5610(c), the board must first “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.” (Civ. Code § 5610(c).) The resolution must be distributed to the members with the notice of assessment required by Civil Code section 5615. (Civ. Code § 5610(c).)
