ASSESSMENTS

Our HOA bylaws state;

ARTICLE XI

ASSESSMENTS

In addition to the monthly dues authorized above, the Board of Directors may levy a special assessment for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement which the Association is required to maintain or for operating deficits which the Association may from time to time incur.

As more fully provided in the Restrictions, each member is obligated to pay to the Association monthly dues and special assessments which are secured by a continuing lien upon the property against which the assessment is made. Any assessment not paid when due shall be deemed delinquent. If the assessment is not paid within thirty (30) days after the due date, a late fee of twenty five (25) dollars per month will be charged. The Association may bring appropriate legal action as provided by law

All residents have received a notice of a meeting to discuss an assessment of $200.00 per household to complete the furnishing
of a Community Center, which the Developer has leased to the HOA. The developer could not convey the Community Center due to having
financial encumbrances on it. The HOA was to furnish the CC as finances permitted, but since acquiring the CC, spending was of no
concern. Now that money, from the previous year's budget expense for the CC has disappeared, the HOA wants to assess the members.

Personally, I am not sure an assessment can be made on such a venture. It does not fit into the bylaws definition of areas to justify assessment.

Anyone care to comment?

Thanks

Glen,
If the "intent" of the SA is to decorate the CC, I don't think it would be allowed under their documents. If they did own the CC and voted to special assess to update and appreciate the common property, I think they can do it.
I suppose if the community wanted to collect monies to update the CC outside the association there is no problem. Another thing that might come into play here is if their documents have some clause about partition of common property. Ours spells out that common property cannot be partitioned. If so, in this case, any use of association money would have to be for the improvement of the whole and not something outside the complete ownership of the whole. Maybe they could find a way to invest in the Community Center and receive some ownership of the building. But apparently the Building itself is under treat of foreclosure (sic), and this alone would indicate a hands off to me.

Glen,
I am sure you agree we can't see the future and if these "finaqncial encumreances" result in liquidation of the propoerty held in Developers name, the assoc. will have to fight for any interest in CC, in other words if he has not transfeered ownership, he owns it, to what degree the courts will decide. Also, we don't know if the association has a sole leasee agreement. He could be leasing the Bldg out to private parties, all we know. I just don't feel the BOD should just go along business as usuaL, they have to protect the associations money and are not allowed to gamble. The board has the authority to instigate a SA, they also have the legal obligation to justify to the members the use of the money, but, if they are going to do it, at the very least they need legal opinion.