Board Can Raise Assessment 20% a Year

QUESTION: In January, the beginning of our condominium association’s fiscal year, the board of directors increased this year’s budget by about 5%. The person who was the treasurer at that time influenced the rest of the board members and kept them from adopting a realistic budget.

I was recently elected to the board. Most of the other board members feel that our monthly assessments need to be increased. We have had our reserve study updated and we should be allocating more funds to the reserve funds for future repair and replacements.

I have read in your column that the association’s budget can be increased as much as 20% above the previous year’s amount. Since the increase this year was only 5%, can the board now revise our budget and increase it by an additional 10% for the remainder of the fiscal year?

ANSWER: The budget that took effect on Jan. 1 should have been distributed to all of the owners between 45 and 60 days before the beginning of the fiscal year. If this was done properly, then the board of directors has the authority to increase the budget up to 20% above last year’s budget, in accordance with the California Civil Code.

Since the board only increased the budget by 5%, they could increase the additional 15% at this point as long as the total increase over last year is not more than 20%.

Some owners may question the board’s authority to approve a midyear budget increase; however, the board can send out a revised budget explaining the reserve study update and providing the actual numbers that justify the additional funds.

California Civil Code requires that the owners be given 30-day notice prior to an increase or special assessment going into effect, so give adequate notice with a full explanation and attach a revised budget showing which line items in the budget need to be increased.

Before approving the second increase, inform the owners that the board is considering another increase because of the recent reserve study. Invite the owners’ attendance at the next board meeting and get their feedback and answer their questions prior to approving the new budget. This is a good way to build consensus if you feel that some owners will be angry about another increase. Remind the owners that the board has a duty to adopt a budget that will fulfill the present and future needs of the association.

Smoke From Unit Below Bothers Owner

Q: I have lived comfortably in my condominium unit for the past six years. Recently, the owner of the unit located directly below me rented out the unit to a heavy smoker. Every time the tenant smokes on his patio, the smoke comes up into my deck. If we both have windows open on the same side of the building, wind will frequently carry the smoke into my unit.

I have spoken to the tenant and the manager, but nothing has changed. What other options do I have?

A: Since I have some sensitivity to cigarette smoke, I can certainly empathize with you. Smoke is bothersome to a great many people and is also a health risk if recent scientific studies are believable.

Many associations are now making rules that prevent smoking in common areas. Living in proximity to others means that some of our privacy and our individual rights are reduced. Some associations prohibit the use of barbecue grills on patios and balconies, not just because of the fire hazard but also because of the nuisance of the smoke and odor.

In my opinion, you should not have to endure your neighbor’s cigarette smoke. However, it may be very difficult to persuade your neighbor not to smoke on his patio. I doubt if you want to go to the extreme of trying to obtain a court order to prohibit his smoking.

You have two other reasonable alternatives. The first is contacting the owner of the unit to ask for his or her cooperation. The owner might persuade the tenant that he should smoke only inside the unit with the windows closed. The owner has the authority to control the tenant’s actions to a certain extent.

The second alternative would be to write to the association’s board of directors to see if they would consider prohibiting smoking on the patios and balconies. The board may resist making this type of rule unless a large number of owners would support and comply with it. You may want to take an informal survey of some of your neighbors to see if others are bothered also.

If neither the owner nor the board is responsive to your problem, then you may have to resort to closing your windows and doors when your neighbor is at home. This may require that you run your air conditioning more, but you may decide that it is worth the additional expense so that you can have clean air and stay on friendly terms with your neighbor.

Hickenbottom is a past president of the Greater Los Angeles chapter of the Community Associations Institute (CAI), a national nonprofit research and educational organization. She welcomes readers’ questions, but cannot answer them individually. Readers with questions or comments can write to her in care of “Condo Q&A;,” Box 5068, Thousand Oaks, Calif. 91360.