Question:
Good Afternoon,
I was searching for this answer but thought I would ask here as well. Our new HOA company is holding a vote at the end of July to assess us (35 total units) $10,000. My question is how much are they allowed to assess at one time to “replenish the reserves” I read this statue https://www.revisor.mn.gov/
This is part of what was sent to us from the company…..
1) To vote on a $10,000.00 special assessment to all
homeowners for Reserve funding for needed but deferred
Capital Expenditures.
2) To transact such business as may properly be brought before
said meeting.
Thank-you
– Jim
Answer:
Hi Jim,
The Minnesota Common Interest Ownership Act Section 515B.3-1151(b) states that each unit owner must pay to replace the reserve funds in accordance with the community’s approved annual budget. Section 515B.3-1151(c) also states that the HOA may levy special assessments if provided in the governing documents. They may do so to replenish underfunded replacement reserve funds or cover unbudgeted capital expenditures. The formula for special assessments may also be based on the formula required in the governing documents for levying annual assessments, stated as follows:
“(c)…In addition to and not in lieu of annual assessments, an association may, if so provided in the declaration, levy special assessments against all units in the common interest community based upon the same formula required by the declaration for levying annual assessments…”
That said, you may refer to the governing documents to see whether there are restrictions or guidelines pertaining to levying special assessments and what formula to apply.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
