HOA Assessment

State of AZ.
Homeowners are assessed $3000 for A/C-Heating units to be replaced when the unit breaks down and can no longer be repaired.
The Reserve account was not funded every year to meet this HOA asset per condo unit. The funds went to expensive management companies when I feel the Board should have cut back the costs and managed the HOA themselves.
How can the Board assess a homeowner for replacement of an asset before it happens??
I need to know where to find the law governing this problem.

Patricia - the AC/Heating units have a "life" - This should have been determined by the Board.

So say, you have 10 years left of the life of this unit. They could have divided up your years left into the amount needed, and given you a per annum payment plan.

Let’s back up a bit and look at the crux of this problem. Are the A/C units common property or are they “owned” by the individual unit owners? You say “units” (plural, which seems to indicate we’re not looking at a central system (which would be common property), but we’re looking at unit owner property. If that’s correct, then it’s “game over” as far as the BOD is concerned. If, somehow, these are common property units, then yes, the association must pay for it out of reserves and if the reserves are insufficient a special assessment would be initiated.

Regarding the cost of your reserve study, it is indeed possible to do one “in house” (free, sort of) but you’d still have to contract out for professional skills required for the costing and useful-life estimates. We offer, no charge, a paper on Creating a Reserve Plan from Scratch and anyone is welcome to a copy if they contact us.