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Back HomeWhat Fresno HOA Boards Need to Know About Raising Assessments
Assessment increases are one of the fastest ways to turn a quiet, functional board into the target of angry homeowner emails. Most of that friction comes from boards either not knowing the legal limits on what they can do without a vote, or knowing the limits but failing to explain the increase clearly to the community it affects.
California law is specific about exactly how much a board can raise assessments on its own authority, and where that authority ends. Getting this right protects both the association’s finances and the board’s credibility.
The 20% Rule for Regular Assessment Increases
Under California Civil Code Section 5605, a board cannot raise the regular assessment by more than 20% over the prior fiscal year’s amount without approval from a majority of a quorum of members. If a monthly assessment was $400 last year, the board can raise it to $480 without a vote — anything above that requires a member election by secret ballot.
That 20% ceiling applies regardless of what an association’s own governing documents say, even if the CC&Rs technically allow for a smaller cap. The statute sets the outer limit either way.
The 5% Rule for Special Assessments
Special assessments follow a separate, related cap. A board can impose special assessments that add up to no more than 5% of the association’s budgeted gross expenses for that fiscal year without membership approval. That 5% figure is an aggregate for the entire year, not a per-assessment limit, so multiple smaller special assessments still count toward the same ceiling.
Anything beyond that 5% aggregate requires the same majority-of-a-quorum vote by secret ballot that governs larger regular assessment increases.
When a Board Can Exceed These Caps Without a Vote
California law does carve out a narrow emergency exception under Civil Code Section 5610. A board can exceed the 20%/5% limits without a member vote only when the expense is required by a court order, necessary to address an immediate threat to personal safety, or needed to repair something that genuinely couldn’t have been reasonably foreseen when the year’s budget was adopted.
That last category gets misused more than the others. A routine repair a board simply failed to plan for isn’t the same as something unforeseeable, and boards relying on the emergency exception are required to document written findings explaining why the expense actually qualifies — not just declare it an emergency and move on.
Why Reserve Underfunding Leads to These Conversations in the First Place
A well-funded reserve, built around the three-year study cycle required under Civil Code 5550, is what keeps predictable expenses out of special assessment territory in the first place. We’ve covered that reserve study requirement in more detail here — the short version is that associations relying on emergency assessments for expenses that were actually foreseeable usually have a reserve funding gap driving the pattern, not genuinely unpredictable bad luck.
Boards that treat reserve planning seriously tend to reach for the 20%/5% authority far less often, because the expenses that trigger special assessments elsewhere are already funded.
How to Communicate an Assessment Increase to Homeowners
Even a fully legal assessment increase lands badly if homeowners don’t understand why it’s happening. Explaining the specific project or expense, the cost, the urgency, and the funding gap it addresses turns a number on a notice into a decision homeowners can actually evaluate, rather than something that feels arbitrary.
Notice timing matters too — increases and special assessments generally require written notice delivered between 30 and 60 days before the amount is due, which gives a board a real window to explain the reasoning before the bill arrives.
What This Means for Your Board
Staying within the 20%/5% framework — and reserving the emergency exception for situations that genuinely meet the legal bar — keeps a board on solid legal footing and reduces the friction that assessment increases otherwise create. Pairing that with clear communication is what actually preserves trust with the community.
If your board wants a second look at how your reserve funding and assessment history stack up, submit a management proposal request or call (559) 221-3170.
FAQ
Can an HOA board raise assessments without a vote in California?
Yes, up to 20% over the prior year’s regular assessment, and up to 5% of the association’s budgeted gross expenses in special assessments, without membership approval. Anything above those limits requires a member vote.
What counts as an emergency assessment exception?
A court-ordered expense, an expense needed to address an immediate threat to health or safety, or an expense that genuinely could not have been reasonably foreseen during the budget process — documented in writing by the board.