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Avoid overuse of closed sessions
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HOA Homefront: Some specifics about closed sessions
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Q: Are there laws governing the responsibilities and obligations of HOA boards, especially those related to limits on raising the monthly assessments that each resident in the community pays?
C.G., San Diego
A: Most CC&Rs limit boards to the assessment increases allowed by Civil Code Section 5605(b), permitting boards to increase assessments up to 20% annually, and to impose special assessments up to 5% of the HOA’s gross budgeted annual total expenses. These powers must be exercised in an open meeting, and care should be taken to explain to the members the reasons why the action was taken. Civil Code Section 5600 requires the HOA to collect sufficient assessments to “perform its obligations.”
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