Civil Code section 5610, which was amended as of January 1, 2025, identifies certain circumstances under which a board can impose a special assessment without the approval of the members even if that special assessment, on its own, or when combined with any other special assessments levied during the same fiscal year, will exceed five percent (5%) of the association’s budgeted gross expenses for that fiscal year.

What Qualifies as an Emegency

The three (3) categories of expenses that qualify for an emergency assessment are:

• An extraordinary expense required by an order of a court.
• An extraordinary expense necessary to operate, repair, or maintain the common interest development or any part of it for which the association is responsible where a threat to personal health or safety or another hazardous condition or circumstance on the property is discovered.
• 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 last annual budget report.

Requirements for Levying an Emegency Assessment

The board must pass a written resolution approving the emergency assessment at a duly noticed open session board meeting, and the board vote to impose the emergency assessment must be on the agenda.  Additionally, the membership must be given written notice of the emergency assessment via individual delivery no less than 30 days and no more than 60 days before the emergency assessment becomes due.

If the emergency assessment is being imposed to cover an extraordinary repair or maintenance expense that could not have been reasonably foreseen by the board at the time the most recent budget was prepared and distributed, the board resolution approving the assessment must contain the findings as to the necessity of the extraordinary expense and why the expense was not or could not have been reasonably foreseen in the budgeting process.  A copy of this resolution must be included with the notice of the emergency assessment that must be given to the membership between 30 and 60 days prior to the due date for that emergency assessment.

PRACTICE TIP:  If there is any doubt whether an expense qualifies for an emergency assessment under Civil Code section 5610, check with the association’s legal counsel.  Better to know up front that an emergency assessment is not appropriate than take the chance of a member successfully challenging the legality of the assessment later on.