Assessment Collection

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Collection Rights & Duties

This article provides a description of the association’s collection rights and duties, outlined in the new Davis-Stirling Act, effective January 1st, 2014.

What You Need to Know: The New Davis-Stirling Act

The Davis-Stirling Common Interest Develop Act, or the Davis-Stirling Act, is the primary set of laws that govern common interest developments (CIDs) and homeowners associations (HOAs) in California. Since 1985, the Davis-Stirling Act has been amended many times; however, on January 1, 2014 the Act was completely renumbered and reorganized, and codified in California Civil Code.

§5740 - Application of Liens after 2002

  1. Except as otherwise provided, this article applies to a lien created on or after January 1, 2003.
  2. A lien created before January 1, 2003, is governed by the law in existence at the time the lien was created.

§5735 - Assignment of Collection

  1. An association may not voluntarily assign or pledge the association's right to collect payments or assessments, or to enforce or foreclose a lien to a third party, except when the assignment or pledge is made to a financial institution or lender chartered or licensed under federal or state law, when acting within the scope of that charter or license, as security for a loan obtained by the association.

§5730 - Required Assessment Notice

  1. The annual policy statement, prepared pursuant to Section 5310, shall include the following notice, in at least 12-point type:

    "NOTICE ASSESSMENTS AND FORECLOSURE

§5720 - Delinquent Assessments Less than $1,800

  1. Notwithstanding any law or any provisions of the governing documents to the contrary, this section shall apply to debts for assessments that arise on and after January 1, 2006.

§5710 - Trustee Sale

  1. Any sale by the trustee shall be conducted in accordance with Sections 2924, 2924b, and 2924c applicable to the exercise of powers of sale in mortgages and deeds of trust.

§5685 - Lien Release

  1. Within 21 days of the payment of the sums specified in the notice of delinquent assessment, the association shall record or cause to be recorded in the office of the county recorder in which the notice of delinquent assessment is recorded a lien release or notice of rescission and provide the owner of the separate interest a copy of the lien release or notice that the delinquent assessment has been satisfied.

§5600 - Assessment Levy Requirement

  1. Except as provided in Section 5605, the association shall levy regular and special assessments sufficient to perform its obligations under the governing documents and this act.
  2. An association shall not impose or collect an assessment or fee that exceeds the amount necessary to defray the costs for which it is levied.

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