Special Assessments
In addition to authorized expenses, an association may approve special assessments to pay for unplanned or unbudgeted expenses. The governing documents or declaration usually set the rules determining how special assessments would be approved. Associations may allow special assessments to be approved by either the board or a percentage of the owners. Sometimes, board resolutions may only be allowed for specified costs or liabilities. Nevertheless, a court may approve special assessments outside those authorized by the governing documents depending on the urgency of the circumstances—urgently needed repairs for example.
Poor communication usually creates difficulties in collecting the fees because some members do not learn of newly approved special assessments. Associations usually require that all owners be notified of new assessments at least some time before the assessments come into effect. Because owners are more likely to challenge special assessments over authorized ones, an association should follow the procedures that the governing documents provide and keep the community informed.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
Posted by Ryan McCabe at 1/30/2009 8:07 AM 
Categories: Homeowners Association, Board of Directors, Assessments
Categories: Homeowners Association, Board of Directors, Assessments
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