|
SPECIAL
ASSESSMENTS
QUESTION: Special
assessments cannot be more than 5% of the budget. If
the budget is $100,000, then the special assessment is $5,000. Is that $5,000 per unit or $5,000 divided by the total number of units?
ANSWER: The $5,000 is divided between
the number of units according to the allocation schedule in your CC&Rs.
QUESTION:
I have an association that has variable assessments. Increasing the budget by
20% would cause one group of owners' individual assessments to be 30% over last
year's. Is this allowable?
ANSWER:
No. By
statute, the board may not increase any owner’s dues
by more than 20% without membership approval. As a result, the budget increase
is limited by the owner with the highest variable assessment.
QUESTION: Is there a time limit on the
expenditure of special assessment funds for designated purposes?
ANSWER:
There is no time limit unless imposed by the assessment itself or
your governing
documents.
QUESTION:
We had a special assessment to
paint the building. We are charging owners according
to their percentage ownership in the common area. Are we obligated to show each owner
what the other owners are paying?
ANSWER:
Because the formula for each owner's portion of the assessment is set forth in
the governing documents, there are no privacy issues regarding the
assessment--each person's obligation can be readily calculated by others.
Accordingly, the board should provide a breakdown of the assessment to any
member who requests it.
Very truly yours,
Adrian Adams, Esq.
Adams Kessler
PLC
NEW VENDOR DIRECTORY.
We've added a new
vendor directory to the website
to better help associations find companies that specialize in serving community
associations. If you know someone who should be in the
directory, please let them know.
For $200 per year, vendors get their company's name, address, telephone number,
e-mail address and a link to their website. They can also add their company's logo
at no additional cost. |
