Q: In California can a HOA levy a Special Assessment of $280K for a beautification project?

A: A member has a right to contest levied assessments and negotiate payment plans with the Association.

There is a cap on special assessments not to exceed 5% of the budgeted growth expenses of the association for the fiscal year unless approval for a greater special assessment is first obtained.

The regular assessment cannot be more than 20% greater than the amount of assessment levied for the previous fiscal year without first obtaining member approval for a greater increase.

This is merely a discussion of general laws and not legal advice. For legal advice, more specific facts and investigations are needed. I recommend you consult with an attorney for more details.

A: In California, an HOA (Homeowners Association) can generally levy a special assessment for a beautification project, provided that the process complies with the HOA's governing documents (such as the CC&Rs - Covenants, Conditions, and Restrictions) and California law. However, a special assessment of $280,000 for 56 homes, which amounts to $5,000 per household, could be considered a significant financial burden.

If the special assessment is approved by a majority vote of the HOA members, homeowners who cannot afford the assessment still have a few potential remedies:

1. Challenge the assessment: Homeowners can challenge the special assessment if they believe it violates the HOA's governing documents or California law. This may require legal assistance.

2. Request a payment plan: Homeowners facing financial hardship can request a payment plan from the HOA to spread the cost of the assessment over a longer period.

3. Seek a hardship waiver: Some HOAs may offer hardship waivers for homeowners experiencing financial difficulties. However, the availability and criteria for such waivers vary among HOAs.

4. Attend HOA meetings and vote: Homeowners should actively participate in HOA meetings and vote on decisions that affect the community. They can voice their concerns and propose alternative solutions to the beautification project that may be more affordable.

If these remedies fail and the homeowner cannot pay the special assessment, the HOA may have the right to place a lien on the property and potentially initiate foreclosure proceedings. Homeowners in this situation should seek legal advice to understand their rights and explore additional options.