Special Assessment Surplus in Washington HOA

Question:

We have a condo in Atlanta GA. The HOA had a special assessment for Phase 1. A roofing project, HVAC and downspouts. The budget estimate was 2.1 million. The dollar amont was then divided up by the number of condo owners (based on their square footage).
The acutal cost came in at 1.65 million,
The HOA is now saying there going to keep the not used 500K and use it for phase two.
Question, Can the HOA board do this? Have a special assessment then use the left over money for something else?
Thanks for you time

– John

Answer:

Hi John,

Washington law currently does not address what to do with leftover funds from special assessments. However, you should check your governing documents. If your governing documents say that special assessments may only be used for the specific purposes for which the assessment was charged, then the HOA likely must return the surplus.

It also depends on whether phase 1 and phase 2 have different condo associations. If phase 1 has a different condo association than phase 2, then the association simply can’t transfer the funds to a different association.

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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