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Assessments

Dennis
In order for our HOA to do a special assessment it has to be voted on by the homeowners per the CC&R’s. They are talking about a “Reserve Contribution” now. Can the board impose a mandatory reserve contribution and circumvent a “Special Assessment”?

Thanks

5 Responses

  1. DennisL

    Dave,

    The association has the right to include a reserve fund contribution in the annual budget and have that funded by the regular annual assessment. That reserve contribution is not a special assessment. If however they are considering a stand alone assessment for the reserve fund it is a special assessment and must be processed as described in the CC&R’s. If a specific long term maintenance issue is what is driving this request for funding and plans to be expended in the fiscal year than that absolutely has to be processed as a special assessment.

    There is a concept not often mentioned called supplemental assessments. This is where the association determines that based on unexpected expenses their operating budget is insufficient to meet the needs of the association. While this is usually used for unexpected expenses, it could also be used if the association realized that its reserve fund is severely underfunded. Since a reserve contribution is a legitimate part of any operating budget they could implement a supplemental assessment to fund this additional reserve contribution. The association would revise their annual budget to include the additional reserve contribution then revise the remaining assessments necessary to satisfy that budget. If your assessment are due in installments the association would have to figure out what to charge in all subsequent assessments to make up the budget deficit. If your assessment was payable in one payment than the supplemental assessment would be payable as a one time supplemental assessment or equivalent installments for the remainder of the fiscal year. You can expect to have this new level of reserve contribution show up in every subsequent annual budget and resulting assessment in the future.

    Dennis

  2. I am having trouble with my H.O.A.
    they want me to paint over part of the front of my house that
    I paint over 7 years ago and they Approve the job
    It seems they don’t like one of the colors can they make me do that
    I went to ACC and they told me I have to go appear in front of them and that’s when they
    said the paint its A different color. can I fright them over this?

    1. DennisL

      Joseph,
      Do you have the record of what you submitted to the ACC 7 years ago and did you actually paint the house the way and with the colors approved by the committee? If you said that you would do one thing and did another you have very little to stand on. Has the paint simply faded with time? If the color was approved because they do not like it now is irrelevant. All paints fade with time. Did the association sent you a violation notice relative to your paint color? What exactly did they say in that violation notice. To give you any more advice i would have to see the provisions in the CC&Rs and rules of the association relative to this topic. They cannot make you repaint your house if they have changed the approved color palette since you last repainted and what you painted was approved at the time it was painted. Problems like this happen most when the management company has changed since you last painted your house.
      Dennis

  3. Joseph Spinelli

    Thank you Dennis for your reply.
    For your information we have the paper of the approval that they did 7 years ago. We showed it to them and also showed the color schemes that they approved it was (three colors). They want us to change the color of the pop-outs around the house.
    We went to the meeting for this matter twice, and the final decision of them is, still have to change the color of the pop-outs. To change the color of the pop-outs will cost us $800.
    We asked them it looks like if there are changes of people on the board , regulation change too. They said yes, it’s can be.
    Have you any idea what we can do about this matter?
    Thank you and looking forward to your reply.
    Joseph

    1. DennisL

      Joseph,

      The association is free to alter their approved color scheme at any time, but they cannot then force members to repaint their houses to match the new color scheme. Any new request for painting must then use the latest color scheme. All of this depends greatly on what exactly your association rules and ACC standards say exactly. Look them over carefully and then request a hearing before the board of directors in an open meeting relative to your violation notice. Never agree to a closed session meeting, the law allows you to decide. The invite as many friends and neighbors to that meeting as you can get for support. Not only must the hearing be in open session the actual decision of the board has to be in open session as well. Some try to delay the decision to closed session but they do not have that authority under the open meeting laws. If the board refuses to honor the law and allow your existing and pre-approved paint color then file a petition to ADRE to force the association to honor their own approval of your paint scheme. It will cost you $500 to file the petition so make sure that your rules do not allow the association to retroactively require home owners to repaint their homes based on a revised palette.
      Dennis

      Dennis

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