Question:
Recently, major renovations were done to my condos due to water damage, costing each unit owner about $35,000. The HOA Board/property management company has now sent a notice that even if owners pay in full, they can still receive another special assessment to pay additional money should another owner default. I have never heard of an HOA requiring people to pay another person’s debt. I am wondering if you have ever seen this and if you consider it reasonable.
– Katrina
Answer:
Hi Katrina,
Typically, associations will charge late fees, interest, and other penalties on unit owners who are delinquent or who default on their assessments. They may also place a lien on the delinquent owner’s property and take legal action to collect the unpaid fees. However, associations may levy special assessments when delinquencies make it hard to cover the cost of repairs. But, special assessments are often used as a last resort as they place a large financial burden on the owners.
It’s best to review your governing documents to see when and how the association can levy special assessments. You may raise your concerns with the board at a board meeting or contact them directly. There may also be other methods the association can explore to reduce delinquencies and cut back on costs, such as closing amenities, postponing capital improvements, and cutting back on non-essential services.
Here is a resource you may find helpful: https://www.hoamanagement.com/
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
