Forgot to check-submit reply on speciial assessment reversal

We are a 36 unit building. We have had a problem with leaking and bursting pipes. The board presented a proposal for a special assessment to do this work and also paint and recarpet the floors in our 3-story building. (Yes, we had the customary 3 bids.

A couple of months ago the association members were asked to approve an assessment for re-piping our building, painting, and re-carpeting. The board held two meetings which were very poorly attended.

The secret ballot vote was 15 to 6 for approval However, ballots were not receive from 15 units.

Now a group of 12 have signed a letter stating they want a special meeting and re-vote on the assessment.

Can this be done? Must we have as re-vote? Has this happened to any of you?

Jean Strauber
Encino CA

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SPECIAL ASSESSMENT 5% LIMITATION

Boards are allowed to special assess the membership up to 5% of the current year's budgeted gross expenses without membership approval regardless of any limitations that might be found in the governing documents. Civil Code §1366(b)
How Determined. If an association's annual budget is $100,000, then the maximum special assessment the board can impose without membership approval is $5,000. That does not mean $5,000 per unit. The $5,000 assessment is divided among all units according to the allocation schedule contained in the CC&Rs.

Membership Approval. For special assessments over 5%, boards must seek membership approval by secret ballot using Election Rules adopted by the association. For purposes of a special assessment, the statute defines "quorum" to mean more than 50 percent of the owners of an association. The governing documents of an association cannot increase or decrease the approval requirements for membership approval. Any such changes are voided by Civil Code §1366(b)

Updated by ADAMS KESSLER 6/12/2008

Hi Glen,

Yes, everything was done "according to Hoyle." We had two meetings-one to explain the assessment and the 2nd was another explanation and to count the ballots. Very few people attended the first meeting and even fewer (only three besides the board) bothered to show up for the second meeting.
As I stated, only 21 ballots were received. 15 for 6 againts. Now, some of those who didn't vote (and some who did) want to have another meeting ande have another vote taken.

Jean Strauber

Does anyone know if there are similar laws in Indiana? Our board is wanting to do a special assessment in the amount of approx. $14,000.00 divided among 36 units. This would be to take care of "one time" expenses. They don't want to increase the dues.

Jim

Jean,

So now that the vote didn't turn out the way these 12 thought it would, they are "demanding" another meeting and another vote. I'd tell them "no way". The meeting was conducted properly, there was a quorum and there is no reason to vote again. Perhaps in the future ALL the members will see the importance of casting a vote, especially for a special assessment. If the board caves in to the demands of these 12 members, who's to say they won't keep demanding another vote until the outcome is acceptable to them?

The answer to this lies in your documents. Look to see what they say about membership petitioning for a special meeting. In many cases the membership can call a special meeting with a petition signed by 10% of the membership.

You will have to look at your documents though to see if they can indeed force another meeting.