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Q.How are homeowners' dues established, changed, or increased?

A.Homeowners' dues must be based upon the funding needs projected in the HOA budget. Typically, the Board will determine what amount of money the HOA will need, but it can delegate this responsibility to an officer, committee, or professional manager provided the Board retains final authority. Based on the determination, the Board will set the amount of the regular dues.

Some governing documents require homeowner approval for changes in regular dues and for special assessments exceeding a certain amount.

Even where the governing documents do not expressly require homeowner approval, California law requires 50% of the homeowners approve a dues increase of 20% or more.

All homeowners must be notified of a dues increase by first-class mail 30 to 60 days before the increase takes effect.

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