SPECIAL ASSESSMENTS,
DEATH AND DYING

QUESTION: The board recently informed everyone that we are facing a large special assessment to reroof and waterproof our buildings. I don't believe them. What can I do to stop the assessment?

ANSWER: In her 1969 book, On Death and Dying, Swiss-born psychiatrist Elizabeth Kubler-Ross outlined the five stages of grief of someone who is dying. Over the years I've witnessed owners go through the same stages when they face large special assessments. Following are the stages:

• Denial. "They don't know what they're talking about." "The repairs aren't necessary; the contractor is just looking for work." "The board must be getting a kickback; let's recall the board."

• Anger. "Who can we sue for this disaster?" "Management is incompetent." "Let's remove the board and sue somebody."

• Bargaining. "Can we defer the repairs?" "Can't we just patch the roof (until I sell my unit)?" "Aren't there cheaper alternatives?" "Will insurance pay for the repairs?" "Let's circulate a recall petition."

• Depression. "I can't bear the costs." "This will force me to sell my unit." "I can't put my family through this." "How do we recall the board?"

• Acceptance. "I know the repairs need to be done. I'm ready, I won't struggle anymore."

Recalls. Unfortunately, some associations don't make it to "Acceptance." Instead, a small group of owners will lead a charge to recall the board and stop the repairs. Directors will often throw up their hands and resign or be recalled. The new board then shuts down all work and fires everyone in sight. This usually leads to litigation from owners who are suffering from water intrusion and mold. Finally, after costly litigation, the association is forced to make the repairs originally proposed; only now the repairs are more expensive and the association has the added burden of legal fees.

Recommendation: Make the repairs. It's cheaper in the long run.

Updated by ADAMS KESSLER 2/1/2008