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JohnC46 (South Carolina)
Posts: 14,265
Posted:
This question comes as a result of a different post. To set the stage:

Let us say ones Covenants say a Special Assessment cannot extend longer than one year. Let us also say there is a need for a Special Assessment for a very expensive project for let us say, roof replacement/road paving, that would create a very large individual assessment for one year. Let us say to the tune of $2,400.00 per unit, for one year in order to pay for it over the one year.

Could a "Special, Limited (call it whatever) Amendment be approved by the owners to override this one year limit for a one time "clearly defined" deal? Say a Special Road Paving Amendment of say $50.00 per month, per unit for 4 years (total of $2,400 per unit)?

Forget the improper Reserve comments. This is not the issue.

My initial blush is they could if the "proper" amount of people (as defined in the docs required for an amendment change) vote for it. Kind of like a yes, but..............LOL
JohnC77 (California)
Posts: 562
Posted:
In my opinion, if the Board put this scenario up for a vote, they are walking into a potential lawsuit.

I know of a similar type of situation where a Board and law firm ignored a passage in a set of CCRs stating if the HOA instituted a law suit where the fees would exceed $2500.00, they needed a majority membership approval. The law firm got sued because of two emails. One to a homeowner who questioned the Board and the law firm told them to pound sand and another email where the law firm told the Board they needed to update the language. The law firm lost $250K.

These special assessments will arise, best to be straight with the owners and maybe change the CCRs.
TimB4 (Tennessee)
Posts: 21,062
Posted:
John,

I would word the issue this way:

Per our governing documents, a special assessment has been approved in the amount of $x,xxx per lot.
The assessment is due on mm/dd/yyyy.

Those with a hardship may contact the board for consideration of a payment plan.

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