Assessment Change

Over 10 years ago when the developer was in control, two houses were built next to each other. The plat map then and now, reflects a lot exists between these two houses. Accordingly, each homeowner paid one and one-half assessments and also received one and one-half voting entitlements.

In June, Homeowner A asked the Board to review his lot situation because he felt he was on an oversized lot and should only pay one full assessment. The Board looked into his request and apparently the builder did in fact reconfigure the lots with the County to build a house which required encroachment on the half lot. So the house does sit on an oversized lot. The Board voted to reflect this change in assessment and also voting entitlement commencing Jan. 2009. Since the Board wanted to be consistent in its actions, we looked at all lots and applied the above decision to Homeowner B. Homeowner B received the benefit of Homeowner A's request. Homeowner B, not Homeowner A, is requesting reimbursement for over 10 years of the half lot assessments. He is also mentioning legal action if he doesn't get what he wants.

The Board is not willing to comply with his request. Our position is that due diligence on the homeowners part to review his property records when he first purchased his home could have resulted in a change at the very beginning if he requested it. Also, how would we account for the past votes? If we pay both homeowners back, this will also impact our budget and cause an increase in assessments for all residents.

Sure would appreciate suggestions, preferably someone with legal background. Thanks.

Joanne:

I differ from Brian's opinion, if the lots were reconfigured to show two oversized lots then I think homeowner A and B have a case against you. The Board has in fact for 10 years been overcharging them, and I will bet your documents say something to the fact that all properties are to be assessed equally.

The right thing to do is refund the money to both...if you want to get into a legal battle then I guess you can, I don't know how statute of limitations works but that may save you some money. But you have already acknowledged a mistake by adjusting your assessments and the defense of "we were robbing you, but is was ok because you didn't know better and check and we didn't know better and check" probably won't hold water.

Joanne,

IMO, this definitely is a situation that calls for expert legal advise. As you know, responses here do not qualify as legal advice. Since ten years worth of assesments is at stake (well, actually five) this h/o may very well pursue the matter through legal chanels. But, either way, the BOD needs to know exactly what their resp. is.

As a general rule: never refund cash; rather, give a credit on upcoming dues or assessments (if the settlement requires you to).