MeralT (New Jersey)
Posts: 13
Posts: 13
Posted:
In NJ is there limit for $$ amount for special assmt?
Can they assess every month?
Can they assess every month?
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Special assmt in Nj
Started by MeralT • 6 replies • 798 views
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JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Meral
The procedure for a Special Assessment will be in your associations Covenants. Unless such is done illegally, the state plays no role.
The procedure for a Special Assessment will be in your associations Covenants. Unless such is done illegally, the state plays no role.
SteveM9 (Massachusetts)
Posts: 3,699
Posts: 3,699
Posted:
A special assesment is simply an expense split between the owners.
If it costs 700,000 to pave your roads and you said you have a lmit of 10,000 he would say i will pave 100 ft for you.
So no, there is typically no limit. Things cost what they cost and need to be split.
If it costs 700,000 to pave your roads and you said you have a lmit of 10,000 he would say i will pave 100 ft for you.
So no, there is typically no limit. Things cost what they cost and need to be split.
TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
Special assessments are typically needed when there is not enough money set aside in the Reserves to pay for the expected maintenance, repairs or replacement of common elements.
Many Associations who have special assessments will split the assessment into monthly payments to make it easier for members to pay (say, $200 per month vs. $2,400 now).
The questions I would be asking the board is:
What is the special assessment for?
How much is the special assessment (total vs. monthly payment)?
What is being done to prevent special assessments in the future (updated reserve study, more payments into reserves, etc.)?
Many Associations who have special assessments will split the assessment into monthly payments to make it easier for members to pay (say, $200 per month vs. $2,400 now).
The questions I would be asking the board is:
What is the special assessment for?
How much is the special assessment (total vs. monthly payment)?
What is being done to prevent special assessments in the future (updated reserve study, more payments into reserves, etc.)?
MarkM19 (Texas)
Posts: 1,459
Posts: 1,459
Posted:
Tim always give Solid advice which is appreciated by our readers. The only thing that I may add here is when is the project needing to be done? Do you have a year to collect the funds before the job needs to be completed? Some HOAs wait till the emergency happen which is shameful. Sometimes waiting can cost everyone more because of the new damage. If you borrow everything that is in reserves for this one item other items need to be repaid. My HOA before I was on the board had a emergency project to build a new parking area and they used reserves and said they would repay over 3 years. This was proved to be an illegal action because the funds needed to be repaid within a year if borrowed.
TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
Quote:
Posted By MarkM19 on 03/24/2019 12:46 PM
This was proved to be an illegal action because the funds needed to be repaid within a year if borrowed.
This was proved to be an illegal action because the funds needed to be repaid within a year if borrowed.
Varies by State.
We borrowed from the reserves to address a storm water management issue. The line item we borrowed from (road repaving) wasn't needed for 5 or 6 years. The board adopted a 3 year repayment plan. No issues. No statutes broken. No covenants or bylaws broken.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By MarkM19 on 03/24/2019 12:46 PM
Tim always give Solid advice which is appreciated by our readers. The only thing that I may add here is when is the project needing to be done? Do you have a year to collect the funds before the job needs to be completed? Some HOAs wait till the emergency happen which is shameful. Sometimes waiting can cost everyone more because of the new damage. If you borrow everything that is in reserves for this one item other items need to be repaid. My HOA before I was on the board had a emergency project to build a new parking area and they used reserves and said they would repay over 3 years. This was proved to be an illegal action because the funds needed to be repaid within a year if borrowed.
Tim always give Solid advice which is appreciated by our readers. The only thing that I may add here is when is the project needing to be done? Do you have a year to collect the funds before the job needs to be completed? Some HOAs wait till the emergency happen which is shameful. Sometimes waiting can cost everyone more because of the new damage. If you borrow everything that is in reserves for this one item other items need to be repaid. My HOA before I was on the board had a emergency project to build a new parking area and they used reserves and said they would repay over 3 years. This was proved to be an illegal action because the funds needed to be repaid within a year if borrowed.
Who/what said it was illegal?
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