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SB 900 ANALYSIS — EMERGENCY ASSESSMENT AUTHORITY EXPANSION

Effective January 1, 2025 — CRITICAL FOR SEGURA CASE

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What SB 900 Changed

SB 900 (signed September 2024, effective January 1, 2025) amended Civil Code § 5610(b) in THREE critical ways:

BEFORE SB 900:

"An extraordinary expense necessary to repair or maintain the common interest development... where a threat to personal safety on the property is discovered."

AFTER SB 900:

"An extraordinary expense necessary to operate, repair, or maintain the common interest development... where a threat to personal health or safety or another hazardous condition or circumstance on the property is discovered."

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Three Key Additions

1. "operate" — broadens scope beyond just repair/maintenance 2. "health" — explicitly covers health hazards like mold (previously only "safety") 3. "another hazardous condition or circumstance" — catch-all for any hazardous condition

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Expert Confirmation

The SwedelsonGottlieb HOA Law Blog (November 6, 2024) explicitly confirmed:

"This not only includes interruptions of gas, heat, water, or electrical services but also may include airborne hazards such as mold and asbestos."

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Application to Segura Case

  • Lab-confirmed Aspergillus/Penicillium at 3x baseline = documented health hazard
  • Potential asbestos in HVAC insulation = documented hazardous condition
  • The Board can levy an emergency assessment of ANY AMOUNT with:
    • - NO member vote required - NO dollar cap - Only requirement: 30-60 day notice before due date (§ 5615)

    The 20-9 failed vote on a regular special assessment is COMPLETELY IRRELEVANT.

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    The Board's DUTY, Not Just Authority

    When read with § 4775's mandatory maintenance duty:

  • The Board arguably has not merely the authority but the DUTY to levy an emergency assessment when a known health hazard exists and no other funding is available
  • Failure to exercise this authority = evidence of bad faith and breach of fiduciary duty

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    Sources

  • SB 900 full text: LegiScan, FindLaw
  • SwedelsonGottlieb HOA Law Blog analysis (Nov 6, 2024)
  • Civil Code § 5610(b) as amended
  • Civil Code § 5615 (notice requirements)