OVERLAPPING ASSESSMENTS

QUESTION: If an association presently has a special assessment in place (which will continue through August) can the Board levy another 5% special assessment or do they have to wait until the first assessment is completed?

ANSWER: As long as the second assessment is levied in a different fiscal year, it can overlap the first assessment (assuming the first was also a 5% assessment from the board). If the first assessment was approved by the membership, then the board could levy their own 5% assessment in the same fiscal year.

Although boards are limited to one 5% special assessment per fiscal year, boards are allowed to impose additional emergency assessments as defined by the Davis Stirling Act. In addition, the membership may assess itself without regard to the size or frequency of the special assessments.

Updated 2/4/2008