Title 1350
Headings 1350.5
Documents Delivery 1350.7
Definitions used in the Act 1351
When this Article Applies 1352
Deletion of Prohibited Language 1352.5
Airport Influence Area 1353
Display of Flag 1353.5
Signs and Banners 1353.6
Roofs 1353.7
Enforcement of CC&Rs and Rules 1354
Amendment of CC&Rs 1355
Deletion of Developer Language 1355.5
Amendment of CC&Rs 1356
Term of CC&Rs 1357
Definitions. Operating Rules 1357.100
Enforceability of Operating Rules 1357.110
Which Rules must comply 1357.120
Notice of Rule Chanages 1357.130
Members’ Request of Special Meeting 1357.140
When Rules Restriction apply 1357.150
Severance of Membership. Partition 1358
Partition of Common Area. Partition Sale 1359
Modifications to Common Area 1360
Pets 1360.5
Easements 1361
Access to Lot or Unit 1361.5
Tenancy in Common 1362
Elections and Meetings 1363.03
Election Campaign Funds 1363.04
Management of the Common Interest Development 1363
Possible Eduction 1363.001
Management Disclosure/Information 1363.1
Management Funds 1363.2
Articles of Incorporation Statements 1363.5
Identification of CIDs 1363.6
Open Meetings 1363.05
Association Transfer of Title or Easements 1363.07
Civil Action for Elections/Meetings Violations 1363.09
Internal Dispute Resolution 1363.810
Reasonable Procedures 1363.820
Procedure Requirements 1363.830
Failure to Provide Resolution Procedures 1363.840
Notice of Dispute Procedures 1363.850
Repair, Maintenance and Replacement Responsibility 1364
Financial Information and Disclosure 1365
Assessment Collection Disclosures 1365.1
Inspection of Association's Documents and Records 1365.2
Assessment and Reserve Funding Disclosure Summary 1365.2.5
Community Service Organizations 1365.3
Review of Financial Documents by the Board. Reserves 1365.5
Limited Liablity for Volunteers 1365.7
Limited Liability for Owners if Insured 1365.9
Regular and Special Assessments 1366
No Excess Assessments 1366.1
Recorded Statement To Facilitate Collection of Assessments 1366.2
Liens for Delinquent Assessments. Enforcement of Liens 1367
Assessment Collection Procedures. Notice of Lien 1367.1
Limits on Collection of Assessments 1367.4
Assessment Lien Error 1367.5
Documents to Purchaser 1368
Restrictions on Marketability 1368.1
Standing of an Association 1368.3
Recovery of Damages 1368.4
Civil Action against Developer 1368.5
Mechanic’s Lien 1369
Definitions. Alternative Dispute Resolution 1369.510
Alternative Dispute Resolution before filing Suit 1369.520
Service of Request for Resolution 1369.530
Time Limit for Request for Resolution 1369.540
Tolling of Statute of Limitations 1369.550
Certificate of Compliance with Statute 1369.560
Alternative Dispute Resolution after Suit is Filed 1369.570
Award of Attorney Fees and Costs 1369.580
Annual Summary of Alternative Dispute Resolution 1369.590
Liberal Construction of CC&Rs 1370
Boundaries of Condominium Units 1371
Local Zoning 1372
Provisions not applying to Commercial and Industrial developments 1373
Act does not Apply if there is no Common Area 1374
Construction Defect Litigation 1375
Construction Defect—Civil Action 1375.05
. Construction Defect, Settlement with Developer 1375.1
Satellite Antennas 1376
Architectural Rules 1378

The Davis-Stirling Act
1366 . Regular and Special Assessments

(a) Except as provided in this section, the association shall levy regular and special assessments sufficient to perform its obligations under the governing documents and this title. However, annual increases in regular assessments for any fiscal year, as authorized by subdivision (b), shall not be imposed unless the board has complied with subdivision (a) of Section 1365 with respect to that fiscal year, or has obtained the approval of owners, constituting a quorum, casting a majority of the votes at a meeting or election of the association conducted in accordance with Chapter 5 (commencing with Section 7510) of Part 3 of Division 2 of Title 1 of the Corporations Code and Section 7613 of the Corporations Code. For the purposes of this section, "quorum" means more than 50 percent of the owners of an association.

(b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board of directors may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the association's preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of owners, constituting a quorum, casting a majority of the votes at a meeting or election of the association conducted in accordance with Chapter 5 (commencing with Section 7510) of Part 3 of Division 2 of Title 1 of the Corporations Code and Section 7613 of the Corporations Code. For the purposes of this section, quorum means more than 50 percent of the owners of an association. This section does not limit assessment increases necessary for emergency situations. For purposes of this section, an emergency situation is any one of the following:

(1) An extraordinary expense required by an order of a court.

(2) An extraordinary expense necessary to repair or maintain the common interest development or any part of it for which the association is responsible where a threat to personal safety on the property is discovered.

(3) An extraordinary expense necessary to repair or maintain the common interest development or any part of it for which the association is responsible that could not have been reasonably foreseen by the board in preparing and distributing the pro forma operating budget under Section 1365. However, prior to the imposition or collection of an assessment under this subdivision, the board shall 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, and the resolution shall be distributed to the members with the notice of assessment.

(c) Regular assessments imposed or collected to perform the obligations of an association under the governing documents or this title shall be exempt from execution by a judgment creditor of the association only to the extent necessary for the association to perform essential services, such as paying for utilities and insurance. In determining the appropriateness of an exemption, a court shall ensure that only essential services are protected under this subdivision.

This exemption shall not apply to any consensual pledges, liens, or encumbrances that have been approved by the owners of an association, constituting a quorum, casting a majority of the votes at a meeting or election of the association, or to any state tax lien, or to any lien for labor or materials supplied to the common area.

(d) The association shall provide notice by first-class mail to the owners of the separate interests of any increase in the regular or special assessments of the association, not less than 30 nor more than 60 days prior to the increased assessment becoming due.

(e) Regular and special assessments levied pursuant to the governing documents are delinquent 15 days after they become due, unless the declaration provides a longer time period, in which case the longer time period shall apply. If an assessment is delinquent the association may recover all of the following:

(1) Reasonable costs incurred in collecting the delinquent assessment, including reasonable attorney's fees.

(2) A late charge not exceeding 10 percent of the delinquent assessment or ten dollars ($10), whichever is greater, unless the declaration specifies a late charge in a smaller amount, in which case any late charge imposed shall not exceed the amount specified in the declaration.

(3) Interest on all sums imposed in accordance with this section, including the delinquent assessments, reasonable fees and costs of collection, and reasonable attorney's fees, at an annual interest rate not to exceed 12 percent, commencing 30 days after the assessment becomes due, unless the declaration specifies the recovery of interest at a rate of a lesser amount, in which case the lesser rate of interest shall apply.

(f) Associations are hereby exempted from interest-rate limitations imposed by Article XV of the California Constitution, subject to the limitations of this section.

 
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