Special Assessment Fee

I would like to ask the following question. Recently our reserve fund is considerable lower because money has been spent on resurfacing the parking lots and now we need to replace the aging lighting. Most of the lamp posts have either fallen down because of age and those that remain are no longer functional. The community is at least 30 yrs. old and much has to be done to restore it.

The wording in the letter to the community is Due to his situation, and with great reluctance, the board has voted to impose a special assessment on each home owner to defray the cost of lighting and return the reserve fund to an acceptable level.

Can a board vote to impose a special assessment or vote to recommend?

Vicki,

It will depend on what your governing documents say about who may adopt special assessments.

Our Bylaws call for a homeowner vote to approve any special assessment (75% have to agree).

As others have said, you'll need to read your governing documents to see what they say about special assessments, but going forward, you need a reserve study - I suspect the lamp posts aren't the only common element on its last legs after 30 years. The study will give you a better idea of what costs you my face in the future and guidance on how to pay for the work. Basically, prepare for fee increases, a loan and/or a special assessment.

Once you get the reserve study done, call a special homeowners meeting to review the results with them so they'll know what to expect. I've heard some associations have instituted a special assessment to infuse the reserves with cash so they can keep fee increases to a reasonable level - that may be what your board is trying to do. Since homeowners are going to have to pay anyway, the question is would they rather pony up the money now and get it over with

If one simply uses Cost Of Living Allowance (COLA) then all association dues should increase about 3% a year and that assumes the costs (such as future capital expenditures) were correct to begin with.