FMA Legal Problems

Legal Citations Related to the FMA


California Civil Code

Sec. 4575

Except as provided in Section 4580, neither an association nor a community service organization or similar entity may impose or collect any assessment, penalty, or fee in connection with a transfer of title or any other interest except for the following:

(a) An amount not to exceed the association’s actual costs to change its records.

(b) An amount authorized by Section 4530.


California Civil Code

Sec. 5600

(a) 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.

(b) 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. 

Facts on the Fixed Mandatory Assessment


Lie #1: It is NOT Fixed because the Board can change the amount any time they want.


Lie #2 it is NOT an Assessment. Assessments require an actual designated targeted expenditure with an actual cost amount specified BEFORE assessing NOT for a slush fund.


Lie #3: The money collected will be placed in the Community Enhancement Fund. Sounds nice, but if you read the Amendment, you will see that the spending of the funds is NOT solely restricted to new enhancements and the definition of 'enhancement is fully open to interpretation.


Lie #4: Community does NOT mean what one would think as all previous funds have not been spent for the benefit of the Community at large, but instead has been spent on minority Special Interest projects. 

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