💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

AudreyH2 (South Carolina)
Posts: 5
Posted:
My association sent out ballots for a special assessment stating if passed,each unit would pay $2,000, beginning January 2022.

Later,when the votes were literally being counted,it was brought up that the amount should be appurtenant with the interest to that particular unit.Meaning owner pays more for the 3 bedroom than of a 2 bedroom.

The amount was recalculated and notice was sent to the homeowners.
Since the amount changed,should there have been a revote or not?
Thanks for any help!!!
MichaelS56 (Minnesota)
Posts: 858
Posted:
Sounds like a bait and switch tactic that used in some businesses. Our association would have a revote after a lot of communication to owners so they can vote on the new financial plan.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
of course there should be a revote if amount changed.

vis ta vie
CathyA3 (Ohio)
Posts: 6,299
Posted:
Given how clueless many folks are about how assessments are calculated, boards included, I wouldn't assume that this was a bait and switch.

It sounds like these are condos, and if the board had hired someone to work with them on the finances, that person may have assumed they were dealing with an HOA where assessments are more likely to be evenly divided. The board may have even told them it was an HOA because people often confuse the two.

Even if the board was totally responsible, bait and switch was likely to fail. Either someone would catch the mistake and they'd have to redo the vote, or someone would catch it after the fact and hire a lawyer. Either way, the association would end up spending more money because of the mistake, which sounds like the last thing they need.
CathyA3 (Ohio)
Posts: 6,299
Posted:
And yes, there needs to be a re-vote. Even though they're correcting the amounts actually being assessed, the vote itself was invalid since the info on the ballot was wrong - so the special assessment has not been lawfully approved.

The outcome probably won't change since it sounds like the community is on board with the need for more money. But different people will benefit if you correct the figures, so it's possible that the vote results will change.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Based on what has been provided, I think a revote would be correct.
However, I would also want to see the actual ballot.

If the ballot was along the lines of - Approve the board to assess a special assessment for the purpose of abc.
I would say no to the need for a revote.

If the ballot was along the lines of - Approve the board to assess a special assessment in the amount of $xxx per unit
Then they either stick with the language on the ballot or dismiss and revote.
AudreyH2 (South Carolina)
Posts: 5
Posted:
Thank you all for your answers,I knew I had come to the right place..
MaxB4
Posts: 3,513
Posted:
In a number of instances, the assessments applied would be equally shared among all units. The same would go for special assessments. It would be spelled out in your CCRs.

It appears, someone assumed the special assessment would be equally distributed, and someone might have brought it up at the last minute. It is NOT uncommon that assessments, regular or special, be based on either number of bedroom or square footage.

If it had been me, for that amount, I might have offered a 6-month repayment plan. But, that's just me.
DawnL6 (South Carolina)
Posts: 226
Posted:
The assessment is more for a 3 bedroom,and less for a two bedroom.
At the beginning of the special assessment,homeowners had 3 options,pay in full,or execute promissory note (two different amounts listed $900 difference),or pay nothing at all.
The owner paid one(1) of the amounts listed.The owner made several attempts to bring to their attention.10 months later,the elderly,homebound,disabled lady,had enough,she was finally able to show on paper the two different amounts,and office manager states,"error" "mistake".
After all this,7 payments later, NEITHER PARTY SIGNED THE PROMISORRY NOTE,
THE ASSOCIATION STATES,"THERE WAS NO CONTRACT SINCE NEITHER PARTY SIGNED,THE ASSOCIATION STATES THEY CAN STILL COLLECT ON THE DEED(DECLARATION).If there was no contract,how can the association hold owner to the terms and conditions,and the unsigned promisorry note was a secured collateral note,being referenced and quoted as to "a promissory note is in place".Would this promisorry note be void/voidable due to the two(2) different amounts?

DawnL6 (South Carolina)
Posts: 226
Posted:
The assessment is more for a 3 bedroom,and less for a two bedroom.
At the beginning of the special assessment,homeowners had 3 options,pay in full,or execute promissory note (two different amounts listed $900 difference),or pay nothing at all.
The owner paid one(1) of the amounts listed.The owner made several attempts to bring to their attention.10 months later,the elderly,homebound,disabled lady,had enough,she was finally able to show on paper the two different amounts,and office manager states,"error" "mistake".
After all this,7 payments later, NEITHER PARTY SIGNED THE PROMISORRY NOTE,
THE ASSOCIATION STATES,"THERE WAS NO CONTRACT SINCE NEITHER PARTY SIGNED,THE ASSOCIATION STATES THEY CAN STILL COLLECT ON THE DEED(DECLARATION).If there was no contract,how can the association hold owner to the terms and conditions,and the unsigned promisorry note was a secured collateral note,being referenced and quoted as to "a promissory note is in place".Would this promisorry note be void/voidable due to the two(2) different amounts?

CathyA3 (Ohio)
Posts: 6,299
Posted:
You're asking a legal question, and most of us here are not lawyers.

My non-lawyer opinion (based on years of living in condos, serving on their boards, and dealing with contracts and whatnot) is that:

1) The original vote was probably invalid because it stated equal amounts for all owners, while you appear to be living in a condo community where assessments are based on par value/percentage of ownership. Therefore another vote needs to be held in order to make the special assessment lawful. (It's possible that your state would look the other way at this, but I personally think that anything dealing with money has to be clear and unambiguous - if for no other reason than to avoid expensive misunderstandings. One party can't demand that a second party pay something that the second party did not agree to pay, with some exceptions.)

2) Once a valid vote has taken place, if the association wants to offer payment plans, then the plans should list the correct amounts, due dates,and penalties for late or non-payment. The condo owner should sign something agreeing to this. Anyone not paying in full should be on a payment plan of some sort. Depending on the format of the agreement forms, an electronic signature may be OK.

Bottom line is that assessments are spelled out in the community's CC&Rs, which are legally binding agreements that buyers sign when they close on their homes. In condos, the CC&Rs will state how the assessment amounts are calculated, when they are due, and how any penalties will be calculated. A special assessment needs a similar level of accuracy and disclosure. "Oops, our bad" is insufficient even if the amounts are corrected.

IMHO.

🎯 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