Special Assessment Election

Our South Carolina HOA is holding a special assessment vote over a 30 day period. About a week into the election the HOA has sent out several emails clarifying the ballot language. For example even though the ballot says the proceeds of the assessment shall be for capital improvements specifically including Project X, the HOA sent an email stating that actually means "only for project X." Likewise the assessment was set at let's say 30 a month for ten years at a rate of interest to be determined but a week into the election the HOA says that really means $37 a month. All these new instructions end with admonishment to vote YES.

Are these emails actually amended voting instructions? I think they believe since they are using thid party voting software, they can do as they please.

Here is the language for the time payments in the latest email:

While this is a one-time fixed Special Assessment for 2020, Owners shall have the option upon execution of an installment payment agreement to pay the Special Assessment over one hundred and forty-four (144) months in equal monthly installments of $24.98 for each Residential Lot (unimproved) and $30.17 for each Family Dwelling Unit, together with interest thereon as established by the Board of Directors not to exceed 3.5% per annum.

Note that the monthly payment amounts defined in the referendum do not reflect the payment amount with interest. The payments with interest will be:

• $37.21 per month for a developed property
• $30.80 per month for an undeveloped property

Sounds shady. Probably due to sloppy and careless preparation of the ballots, and not due to any actual wrongdoing. But even the appearance of something that's not quite right should be avoided.

A "special assessment" that goes on for 10 years doesn't seem that "special", to be honest. Is the money going to be spent on Project X all at once and it's the payback terms that require 120 months to pay it off? Is there an option to pay it all at once and avoid extra charges and interest?

I think your Board is doing you a favor and you should vote they way you want and say thank you. Not sure how interest but it is can change year to year and can't exceed 3.5%. The Board is trying to make the assessment as painless as possible by spreading it over 10 years so people who can't afford it don't have to come up with big payment. I don't know how big your HOA is or if it has a management company but from reading your post is sounds like they need money for a project.