benefited assessment

Started by BarbaraD6 • 16 replies • 3024 views

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BarbaraD6 (Florida)
Posts: 347

Posted:

... said costs shall only be paid for by the owners in that particular building being repaired as a benefited assessment.

Their is confusion as to the procedure to follow to do a benefited, so your opinions would be greatly appreciated.

The attorney is telling us follow the procedure of doing a special assessment. Give the owner 14 day notice that their will be a meeting in which their benefited assessment will be voted on.

Do you think the board would have to vote on it? Couldn't the manger just send a bill to the owners since the documents are saying who gets charged?

thank you
Barbara

SusanW1 (Michigan)
Posts: 5,202

Posted:

I would think that the board should call a special meeting of the affected homeowners and present the proposed motion that will be made at the board meeting that gives the power for the board to spend the money and/or enter into a contract.

I agree with the lawyer.

But how much of an increase are we talking about here?

BarbaraD6 (Florida)
Posts: 347

Posted:

Susan,

This is a plumbing issue, cost about $6,000. The problem is affecting 3 units but the whole building will benefit which is 6 units. Waiting on the attorney to say if 3 or 6 units will be assessed.

Barbara

BarbaraD6 (Florida)
Posts: 347

Posted:

Does anyone else have benefited assessment in their docs?

Barbara

DanielH1 (California)
Posts: 482

Posted:

We don't have a benefitted assessment. Everybody pays, even if the issue is far, far away from some.

MaryA1 (Arizona)
Posts: 7,043

Posted:

I've never heard of the animal! As I've always said, there's always something new to learn in HOA land.

BarbaraD6 (Florida)
Posts: 347

Posted:

Mary,

I was counting on your help, hopefully Donna or someone else will know.

thanks
Barbara

GlenL (Ohio)
Posts: 5,491

Posted:

Barbara, could you post the whole section you have a question about? It needs to be interpreted as a whole not a line out of context however if your attorney says that that is what it means, it probably does. As far as the Board voting on it instead of the homeowners; what is required by the CC&R's and any applicable law?

Studies show that 5 out of 4 people have problems with fractions

BarbaraD6 (Florida)
Posts: 347

Posted:

Glen, here is some of it.

The Association shall perform, or cause to be performed, the following on Lots:

(vi) maintenance, repair, and replacement of the foundation and structure of the dwelling on the lot and any common utility equipment serving more than one lot; provided however said costs shall only be paid for by the owners in that

particular building being repaired as a benefited assessment

The attorney concluded since the problem affects more than 1 unit that the association has to fix the problem but that the owners will receive a benefited assessment.

No ,the association is not going to vote on this, the board is. I'm saying I'm not sure why we have to vote on it when the docs state in certain situations the owner will receive it.

thanks for any help you can give.
Barbara

MaryA1 (Arizona)
Posts: 7,043

Posted:

Barbara,

Some assn docs call this a "parcel assessment" and it is assessed only against the lots that received the maint or repair as outlined in the CCRs. I agree that the board should not have to vote on levying the assessment but they should definitely vote on whether or not to undertake the repairs. I think it would be a good idea to forewarn the members involved that they will be assessed for these repairs pointing out the exact article in the CCRs so they can read it for themselves. If it turns out to be a large assessment the BOD may want to allow the members to pay monthly instead of one lump sum. These are hard times for many people!

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Me neither Mary. I guess we can assume this is a condo. But how big is it? Are all the Units separate, is the dues apportioned? I doubt it would fly under our covenants or under SC state Horizonatl Propery Act (Condo associations). But sure as I say that, like a few others someone will prove me wrong. I do say for sure the lawyer stance seems the most reasonable approach. I also hope he agrees to go and attend the meeting as an advisor to the Board, it probably won't be pretty. But more information is necessary, and if there is any case law in FL, or anywhere else, please post it. I think I will Google it.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

I did Google it, and here is one of the references, there are others............Yikes!

http://www.docstoc.com/docs/30511321/Summary-Judgment-on-Declaratory-Action/

BarbaraD6 (Florida)
Posts: 347

Posted:

Mary,

What procedure is followed for a parcel assessment?

Would we have to do the repair and then do the benefited assessment? You think the board has the right to vote on whether we should do the repairs prior to receiving the monies from the unit owner?

One of the unit owners doesn't have a job that's why the manager was contacted in the first place, we don't know if any of them will pay.

We are a townhouse community between 4 and 6 units per building.

thank you
Barbara

MaryA1 (Arizona)
Posts: 7,043

Posted:

Barbara,

There is such an article in my assn CCRs (we are single family homes, not condos) but it does not specify if the repairs must be accomplished first; only that the expense shall be assessed solely against the lots which are benefitted by the parcel assesment. Unless all the questions you ask are addressed in your docs, IMO, the board has the authority to determine exactly how the assessment and payment shall be handled. If the work is imperative then I would think the board should vote to have it taken care of ASAP and bill each benefited member. As I suggested, let the members know beforehand what to expect and allow for payments rather then demanding a lump sum. Late fees could be waived for members who are out of work or faced with other financial difficulties. If assn funds are low, perhaps money can be taken from the reserve account and paid back as each member makes a payment. Anyone who doesn't pay, or refuses to pay would be delinquent and that delinquency would be treated the same as a regular assessment delinquency. That fact should also be stated in the letter to the affected members.

BarbaraD6 (Florida)
Posts: 347

Posted:

Thank you Mary, you have been very helpful.

Barbara

BarbaraD6 (Florida)
Posts: 347

Posted:

Mary,

I have been informed that the attorney said to assess the whole building which is 6 units.

One of the unit owners sent several bills for some of the repairs they did and is expecting the association pay him.

I wonder if we have to pay him back all the money then wait for him to pay the assessment or give him back money minus his portion of the assessment.

Barbara

MaryA1 (Arizona)
Posts: 7,043

Posted:

Barbara,

If the BOD agrees this owner should be reimbused then the amount he paid can be deducted from his special assessment amount. The accountant/bookkeeper can make a journal entry to properly record this.

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