The bill caps assessment increases at the rate of inflation. Inflation caps ignore real costs like insurance, utilities, and repairs that rise faster than inflation. Community associations are mandated by state law to address these issues. Under California statute, associations are only allowed to budget for actual operating costs. There is no profit or fluff built into the budget.
SB 1007 shifts cost onto homeowners and will force deferred maintenance that will lead to large unpredictable special assessments. Mandating a membership vote to increase assessments is ineffective. Elections are costly and votes involving finances are hard to pass because homeowners often reject necessary budget increases, creating safety risks.
Existing law prohibits an association from increasing regular assessments by more than twenty percent, without the approval of a majority of a quorum of members. SB 1007 disrupts this proven framework, which has worked through multiple economic cycles without driving unaffordability.
SB 1007 passed out of the Senate Housing Committee and has been referred to Senate Judiciary Committee. Act now and tell the Judiciary Committee to oppose this bill.
Thank you for your commitment to advocate on behalf of the approximately 14.5 million Californians living in 5,056,000 homes in more than 51,250 community associations across the state. We couldn’t do this work without you.
Thank you,
CAI California Legislative Action Committee
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