The association shall levy regular and special assessments sufficient to perform its obligations under the governing documents and this act.
Article 1Establishment and Imposition of Assessments
Section § 6800
This section requires that associations must collect enough regular and special fees from members to fulfill their responsibilities as outlined in their rules and this law.
association fees regular assessments special assessments obligations governing documents member contributions fee collection financial requirements community association legal obligations association responsibilities budgeting financial planning association levy compliance with rules
Section § 6804
This law section says that regular dues collected by a homeowner association to fulfill their responsibilities are generally safe from being claimed by creditors suing the association. But they can only keep enough money to cover essential services like utilities and insurance. However, this protection doesn't cover cases where the members have agreed to certain financial agreements such as pledges or liens, or for government tax liens or costs for work done on shared areas.
(a)CA Civil Law Code § 6804(a) Regular assessments imposed or collected to perform the obligations of an association under the governing documents or this act 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.
(b)CA Civil Law Code § 6804(b) This exemption shall not apply to any consensual pledges, liens, or encumbrances that have been approved by a majority of a quorum of members, pursuant to Section 6524, at a member meeting or election, or to any state tax lien, or to any lien for labor or materials supplied to the common area.
homeowner association dues creditor protection essential services utilities payment insurance payment member-approved pledges financial agreements state tax lien lien for labor common area materials quorum of members consensual pledges association responsibilities court determination governing documents obligations
