Changing Assessment Fees

Started by MindyD • 6 replies • 1598 views

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MindyD (Arizona)
Posts: 47

Posted:

I live in Arizona and six months ago we started a schedule for assessment fees to fix the bad roofs on all the units. Since the housing market fell and our foreclosure rate is up they mentioned in a newsletter that they do not have the money to fix the roofs right now and that they are going to do other repairs. We have already paid half of our assessment fees on time and as scheduled. They do expect the people still living here to pay the remaining fees, is this legal. We had a management company take over for our HOA and there have been many problems but the major one is that they were to make seperate accounts for the monthly dues and the assessment fees and they didn't so should I worry about this or not???

SusanW1 (Michigan)
Posts: 5,202

Posted:

Was this a "special" assessment approved by the homeowners, for the purpose of repairing the roofs?

And now you say, the Board has decided to NOT use those funds for the roof, and is using those same funds for "other" repairs?

They would need approval from the same people that approved the special assessment (the homeowners) to do that.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By MindyD on 06/06/2008 1:44 AM
I live in Arizona and six months ago we started a schedule for assessment fees to fix the bad roofs on all the units. Since the housing market fell and our foreclosure rate is up they mentioned in a newsletter that they do not have the money to fix the roofs right now and that they are going to do other repairs. We have already paid half of our assessment fees on time and as scheduled. They do expect the people still living here to pay the remaining fees, is this legal. We had a management company take over for our HOA and there have been many problems but the major one is that they were to make seperate accounts for the monthly dues and the assessment fees and they didn't so should I worry about this or not???

Mindy,

Like Susan, I'm thinking you are referring to a special assessment. Did the members vote for a special assessment and was it specifically for roof repair? If so, the board should be setting aside that $$$ for that specific purpose and not using it for other repairs. IMO, the special assessment money should have been put into the reserve account and not co-mingled with the operating fund. However, there is no state law requiring this and if your gov. docs are silent on this issue, there isn't anything the members can do about it. Also, depending upon how your docs are worded concerning special assessments, the board may be allowed to use the monies already received however they choose. Bottom line: research your gov. docs. so you know exactly what can be done with special assessment money. There is no state law addressing special assessments.

With regard to the management company; be aware that they are not in control; unless the board allows them to be! The BOD should be telling the manager what's expected of him/her and how things are to be done. I'm not siding with the manager, but he/she shouldn't be blamed for the board's shortcomings.

MindyD (Arizona)
Posts: 47

Posted:

Yes the funds were voted on for roof repair specifically and the next scheduled payments are coming due.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Mindy,

You stated the board announced in a newsletter "they do not have the money to fix the roofs right now and that they are going to do other repairs." Did they say the special assessment money for roof repairs is being used for these "other" repairs? Perhaps by saying they "don't have the money right now" means they must wait until all the money from the special assessment comes in b/4 they can schedule the roof repair. In the meantime, they are taking care of other repairs with funds in the operating account.

MindyD (Arizona)
Posts: 47

Posted:

Hello everyone: I now have a new question to ask in regards to the assessment fees coming up. I am in Arizona and the housing market is horrible here and I was wondering how do I go about stopping the second half of the assessment fees that will be due in September. Our president is no help, he won't answer any emails or phone calls and the management company is so horrible also. I seem to be the only one who cares that no one can afford these fees and there isn't enough money to fix the roofs right now anyhow so can I get signatures from the other homeowners to put off the assessment fees till we fill some of the units up with paying residents? I receive no cooperation from the president of the hoa and he just ignores me anyhow so what can I do to handle this, I am not savy with legal things and I want to do this right. They said they were going to use the money for other repairs but nothing is being done and we all need to tighten our belts right now and I am happy if the trash gets picked up and the pool isn't green. Any suggestions??? You all are so helpful here and our board consist of three friends that don't let anyone know what is going on so I am on my own but I am sure the neighbors will agree with me on this one.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Mindy,

How the special assessment is collected is usually at the discretion of the BOD. Check out your docs to see if this is the case for your assn. If so, you are at the mercy of the BOD. The members can sign a petition asking that the collection be put off for awhile but the board doesn't have to respond to it. If the docs give them the authority to state how and when there's nothing you can do about it. On the other hand, the board Pres is only one board member. If he doesn't want to listen to you, start speaking to the other board members.

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