Assessments

Previous board sent down a special assessment without a 2/3 vote of the community, when our docs specifically state that in order to pass an assessment, we need a 2/3 vote.

What could we do (if anything) about that?

First, don't pay it. Secondly, find yourself a lawyer and then bring a challegene up at the next board meeting. If that fails, do a recall and kick the bums out of office.

Donna,

Unfortunately, I can't cut and paste, as I don't have an electronic copy of the docs, but I can quote so here goes:

...Notwithstanding the foregoing, the levying of any special assessemnt after the "turnover date" shall require the affirmative assent of at least two-thirds (2/3) of all owners respresented by their voting memebers in person of by proxy at a meeting called and held in accordance with the bylaws.

Unfortunately, the assessment has been done and collected so we, as the new board, want to know what we can/should do.

Lisa

Lisa,
Below is the Statute requireing a 14 day notification from the Board to the membership, stating that an assessment will be considered.

Then your own Bylaws require a 2/3rds vote of the membership to pass a proposed assessment. Therefore, your Board enacted the assessment without a vote by the membership and In MY Opinion, it was an illegal action by your Board.

720;303 2. An assessment may not be levied at a board meeting unless the notice of the meeting includes a statement that assessments will be considered and the nature of the assessments. Written notice of any meeting at which special assessments will be considered or at which amendments to rules regarding parcel use will be considered must be mailed, delivered, or electronically transmitted to the members and parcel owners and posted conspicuously on the property or broadcast on closed-circuit cable television not less than 14 days before the meeting.

What can you do or what should you do? It depends on why the assessments was raised. Is it to meet the new budget expenses? Dues must go up in order to keep up with association expenses so perhaps it is just a nescessary action from the Board. Did you examine the annual Budget? Most owners would be suprised if they really got involved in the Budget process as there are items included that you would not ever think would be a cost to the association.

The assessment was done to cover new projects that weren't accounted for in our budget. Some of these did, in fact, need to be done ie. reserve study, engineering study for turnover but others were just things they wanted to get done ie. new gates for the front entrance. They also raised HOA fees by $100 a month the following January. So, this assessment wasn't levied to meet a shortfall to budget it was levied so that they could do extra things that weren't included in the budget.

Hope I'm making this clear

So, since it seems that the assessment was done illegally, can an owner refuse to pay it?

LisaN1 - With more information you've provided it is safer to provide comment.

A line item to specifically fund the reserve/engineering study would not typically be present in a Developer budget. However, that does not necessarily mean that an owner controlled Board needs to special assess for the non-existing budget line item, certainly not at first. Meaning, the Board should always try to first readjust the existing budget by looking to reduce spending in discretionary areas to be applied to other areas that are a priority. Now, priority to some is not a priority to others but the concept of proper fiduciary budgeting is to focus on the meat and potatoes prior to desert.

The extra things the Board is spending, or has spent the amount assessed, may or may not be capital improvements or necessities. You tell us, how old are the gates, what was the condition, etc.?

As the new Board, if you think funds were collected improperly, or for items that are not priority you may very well have to dovetail the amount collected, readjust the current assessment, and provide the community the opportunity to re-vote. Concern here is that you know something was done that was incorrect and can't claim it is an error or omission on the part of the new Board. Hence, D & O insurance concerns. I'm not in favor or givebacks to cover budget items but you've got an interesting situation that deserves your Board's discussion and your determination on how you are going to proceed.

DonnaS - The BOD raised the maintenance $100.00 a month, some of which may or may not be necessary. I agree, don't cry over spilled milk, but the cash cow is still flowing, you know what I mean? : )