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ALLOCATION OF ASSESSMENTS
 QUESTION:
I am widowed with a large unit. My monthly dues are higher than everyone else
even though I barely use use the facilities. Is this legal?
ANSWER: There
is nothing illegal about disproportionate assessments. The allocation is set by
the developer when the governing documents are created. CC&Rs will generally
allocate assessments in one of three ways:
1. Pro Rata. Pro
rata (Latin, "according to the rate") refers to
dividing monthly assessments by a
percentage assigned to each unit or lot. This is usually by square footage. Even
though payment of assessments are disproportionate, the courts have found that
such payment schedules are not unreasonable and do not violate public policy.
Cebular
v. Cooper Arms Homeowners Association
2. Uniform Rate. Members pay the same amount regardless of the
size of their units/lots.
3. Blended Rate.
Assessments are assigned using a uniform rate for some budget items and a
percentage rate for others. This method tries to allocate expenses by usage so
that large units pay more for services that provide greater benefits to larger
units.
Changing Assessment
Allocations. Changing an association's assessment structure requires
an amendment to the CC&Rs. Our firm has helped associations navigate the process
but there is no guarantee the amendment will pass. Changing the structure means increasing assessments on
some units and lowering it for others. Owners with increased assessments generally vote against the change.
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Sincerely
yours,
Adrian Adams, Esq.
Adams Kessler PLC |
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