Special Assessment Letters

Started by AlexL1 • 14 replies • 7581 views

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AlexL1 (Florida)
Posts: 305

Posted:

Requesting an approval for a special assessment is not a pleasant thing to do but at times, it does become a necessity. Does anyone have any idea/suggestion as to how a letter should start out when stating (opening a letter) with the request for approval for a special assessment? I could not find anything in the archives.

DanaB1 (Connecticut)
Posts: 319

Posted:

Alex, have the owners been made aware, via the minutes over the past year or at least several months, that a physical condition existed that needed to be addressed perhaps requiring addtional funding; or is this a bombshell that you are about to drop due to, let's say, your insurance premium going up 500% after your budget was already passed for the year?

Dana

SusanW1 (Michigan)
Posts: 5,202

Posted:

I agree; this should not be a surprise, but rather a last resort for an on-going problem.

Be sure there is a motion in the minutes to REQUEST this assessment approval from the members.

AlexL1 (Florida)
Posts: 305

Posted:

Actually, this falls more under the category of being a bombshell.. a new Federal law pertaining to the pool drains, etc

MaryA1 (Arizona)
Posts: 7,043

Posted:

Alex,

If the special assessment is required in order to bring the pool up to Fed code,then start the letter by putting the onus on the shoulders of the Feds:

"Because of the new Federal law which requires all pools to be outfitted with new drains (state what the exact requirement is) the BOD finds it necessary to ask the members for approval of a special assessment, in the amount of $____, to cover the cost of this upgrade. Funds are not available in the operating fund or the reserve fund to cover this expense. The deadline imposed by the Fed govt to make this upgrade is ___, therefore, if not accomplished by that date, we will have no recourse but to keep the pool closed until further notice."

JohnK3 (Pennsylvania)
Posts: 967

Posted:

Quote:

Posted By MaryA1 on 05/11/2009 7:40 AM
Alex,

If the special assessment is required in order to bring the pool up to Fed code,then start the letter by putting the onus on the shoulders of the Feds:

"Because of the new Federal law which requires all pools to be outfitted with new drains (state what the exact requirement is) the BOD finds it necessary to ask the members for approval of a special assessment, in the amount of $____, to cover the cost of this upgrade. Funds are not available in the operating fund or the reserve fund to cover this expense. The deadline imposed by the Fed govt to make this upgrade is ___, therefore, if not accomplished by that date, we will have no recourse but to keep the pool closed until further notice."

Nicely stated, Junior.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Thank you, John. :-)

AlexL1 (Florida)
Posts: 305

Posted:

Mary: very very nicely put and simple..... and to the point

AnnaD2 (Florida)
Posts: 960

Posted:

Alex, I'm just curious how much work you've been told you'll need in order to be up to code with this new Federal Law? Our pool was built in 1981 and it only cost us around $250.00 to have the drain fitted with the new required cover. We didn't even have to drain the pool. The guy just put on a wet suit and down he went.

I'm surprised you're only just now dealing with this new law. We received notification months and months ago and were in compliance way before the law went into effect.

MicheleS3 (Florida)
Posts: 30

Posted:

I am also interested in a procedure for special assessments. Our HOA is quickly running out of money due to so many homeowners being in arrears with the annual HOA dues. In addition to those irresponsible homeowners we have about 16 homes currently in some phase of foreclosure and are not able to collect dues for those homes. As previously asked, does anyone have a sample of a letter to notify homeowners of the possibility of a special assessment? We are a relatively small single homes subdivision (142 homes) and don't have a lot of expenses, but due to to many unpaid assessments we are rapidly approaching trouble.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Michele,

I wouldn't recommend a special assessment unless the uncollectable delinquencies are so high that it would be impossible to cut costs to make up for the shortfall. But, remember, a sepcial assessment is only to treat today's problem. Foreclosures aren't going away any time soon so these uncollectable delinquencies may continue to be a problem for a number of years to come. It would be wise to raise the assessments and add a "bad debt" line item to the budget to cover these uncollectable delinquencies. That is the best way to go, but depending upon what your financial situation is, a special assessment AND a raise in assessments may be required.

MicheleS3 (Florida)
Posts: 30

Posted:

Thanks for your response. As I said, our HOA is rapidly approaching trouble. Our dues are relatively inexpensive, $210.00 per year. And as far as expenses, we don't have any real amenities. We have a few common areas, the cost of power for street lights and irrigation pumps and we have to maintain the waterways, which are strictly for drainage. Unfortunately, when 40% of HO's haven't paid dues it has created a problem. I know if we can't keep up the state will take over and none of the board members want that. I doubt the HO's do either, if they realize what that would involve.

AlexL1 (Florida)
Posts: 305

Posted:

AnnaD2: We did not hear about it until Jan of this year and then the drain covers were not available.. confusion(much confusion ) as to what had to be done.. we had to do this.... no, we do not have to do this but do that, etc etc and one contractor said we needed this and another said we needed that, and this has gone on and on.. cost by one was $6,000 but not clear s to what he would do.. another two contractors stated $12,000 ???

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

You could let get an idea of what people want to do by sending out a letter.

1. Asses a special assessment to each home owner for $xxx to continue maintenance as is for xx months.

2. Cut the power to the streetlights. Drop the maintenance to the waterways and cut the irrigation pumps. Continue to pay insurance and minor expenses.

3. The State takes over does special assessments and cuts maintainable. Like it or not. The state will not care.

Pick your poison. But you must choose one.

AnnaD2 (Florida)
Posts: 960

Posted:

Alex, do you have a pool cleaning company??? Also, do you have a mangement company? OUR pool cleaning company knew EXACTLY what we needed to get our pool up to code. Our new management company hired our pool company to retro-fit 24 of their properties with the needed equipment. It met with the Health Department code, too.

What county are you in? Maybe I can refer you to them if they service your area. I'm in Pinellas.

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