Can an HOA increase fees to pay for a lawsuit that it lost?

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Can an HOA increase fees to pay for a lawsuit that it lost?

I just got notice that the homeowners association that runs the condo I live in. It lost a lawsuit and so they are increasing all of the tenants monthly dues to recoup the money they lost. They are calling it an “emergency special assessment”. Can they do this legally? Why do the tenants have to pay for their negligence?

Asked on June 8, 2012 under Real Estate Law, California

Answers:

Janet Martin / Janet Martin Attorney at Law

Answered 9 years ago | Contributor

This is one of the worst parts about living in an area with a home owners association. You have no control over stuff like this. I am sure it is legal and spelled out in the condo association documents. Feel free to ask for a copy of the code sections that allows and defines what a special assessment is, as well as the part on defending lawsuits. It likely is all in there.  Remember the association fought the lawsuit on behalf of the homeowners. So they represented you and you do have to pay for it. unfortunately. The fact they lost, means you lost too whatever the subject matter was.


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