LeaT (North Carolina)
Posts: 1
Posts: 1
Posted:
The HOA wants to credit an owner two month's of Assessments because the landscaper damaged their property. Can they do that?
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
Can the HOA credit me account
Started by LeaT • 6 replies • 432 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
The HOA wants to credit an owner two month's of Assessments because the landscaper damaged their property. Can they do that?
SamE2 (New Jersey)
Posts: 310
Posts: 310
Posted:
They can in our HOA and it would not require a 1099. Why would it be different then issuing them a check for the damage?
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Can they? yes.
Should they? NO!
The proper way to do this is to continue to collect assessments and write a check for the damages.
An auditor will ask about it.
A future board might question it.
members may not understand it on a financial statement.
Most likely, the covenants prevent it.
Should they? NO!
The proper way to do this is to continue to collect assessments and write a check for the damages.
An auditor will ask about it.
A future board might question it.
members may not understand it on a financial statement.
Most likely, the covenants prevent it.
GeorgeS21 (Florida)
Posts: 3,808
Posts: 3,808
Posted:
Strongly agree with Tim.
SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
I also agree with Tim. The landscaper should have insurance or some sort of method to cover situations like this.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
Another agreement with Tim. Write the check, complete the necessary forms.
SteveM9 (Massachusetts)
Posts: 3,699
Posts: 3,699
Posted:
Its likely they can offer money to a homeowner for the same dollar amount of the assessments, but not waive assessments as payment for the damage.
If they log it as waived assessments, another board can come back on that person years later for not paying assessments and fine and foreclose.
They should write the homeowner a check for that amount. Not a credit to keep it clean. Then the homeowner pays his assessments normally and its logged normally.
If they log it as waived assessments, another board can come back on that person years later for not paying assessments and fine and foreclose.
They should write the homeowner a check for that amount. Not a credit to keep it clean. Then the homeowner pays his assessments normally and its logged normally.
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here