Oakland, CA asked in Uncategorized for California

Q: A problem occurred involving the property in an HOA and an emergency assessment was voted on and approved by homeowners.

Subsequently, some additional work was needed on the Same problem by the same contractor. Are the homeowners required to vote again or can the Board approve the additional funds?

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: According to California Civil Code Section 5605, the Board has the authority to approve additional expenditures for ongoing projects without requiring another homeowner vote, as long as the total increase doesn't exceed 5% of the original budgeted expense for that year.

If the additional work is directly related to the same emergency that prompted the initial assessment, and the costs fall within reasonable parameters, the Board can typically proceed with approval. This is because emergency situations often require flexibility and quick decision-making to address evolving circumstances.

However, if the additional costs would significantly impact the association's finances beyond the 5% threshold, or if the scope of work has substantially changed from the original approved project, it would be prudent to hold another homeowner vote. You might want to review your HOA's governing documents, as they may contain specific requirements about spending limits and voting procedures that could affect this situation.

I recommend checking your association's CC&Rs and bylaws, or consulting with your HOA's legal counsel for guidance specific to your situation, as governing documents can sometimes be more restrictive than state law.

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