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Subject: Special Assessment require proxy?
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Author Messages
BruceB1
(Missouri)

Posts:2


05/09/2006 8:59 AM  
We are considering an expensive aeration system for our 23 acre lake which is managed by our HOA consisting of 3 board members. We have little funds in our account and would need a special assessment to accomplish this upgrade. There are 16 lots within the association for the lake, but only 8 have homes built yet.

1. Can we enforce an assessment on those lot owners who are not homeowners? I assume not, because they are not yet HOMEowners.
2. Can we delay the special assessment for those lotowners and assess them when they build?
3. We are considering rasing our dues from $200 to some larger amount to begin to build the funds for such maintenance. Does this require a simple quorum, or should we utilize a proxy vote for such dues increase?
RogerB
(Colorado)

Posts:5067


05/09/2006 10:02 AM  
Bruce, your questions should be answered in your Declaration. In Colorado all lots that are part of the HOA are assessed unless there are special circumstances defined in the Declaration. Owners are invoiced for annual and special assessments. And the owners of all lots (units) vote on a special assessments and often 2/3 approval of all owners is required. If this applies in your HOA and the 8 who own vacant lots do not vote or vote against, then the special assessment can not pass. For ratifying the annual assessment a simple majority voting at the annual meeting is often all that is required; and some HOA Boards can increase by specified amount without the owners approval.
BrianB
(California)

Posts:2820


05/09/2006 11:08 AM  
Roger's right, and remember, those lots have owners... someone owns them, and that someone is responsible for any assessment, regardless of what they do with their lot.
BruceB1
(Missouri)

Posts:2


05/09/2006 1:09 PM  
We are capped at a % increase per year on the dues. So I guess the board could raise dues up to that cap without a vote. To go beyond that would require a 2/3 vote in favor I assume. Also, any special one-time assessments would require the same 2/3 vote I assume.

Would a homeowner that owns 2 lots, but one home, be subject to 2 assessments/annual dues in your state? They are really not receiving double the benefits of the HOA.

All lotowners can vote, we just have never assessed those lotowners when they have not built a house yet. There might even be something in the Declarations regarding no dues until moved in. Obviously the 2 lots still owned by the developer would not be assessed.
JulieS
(Georgia)

Posts:412


05/09/2006 1:49 PM  
Our docs allow for a special assessment of up to $300 without a vote from the homeowners.

You could look into a bank loan for this purchase but make sure that under the current budget you will be able to cover the monthly payments (especially with the limitations on how much the dues can be raised annually).

I would be sure to increase your dues each year based on the limitations set in your docs so that you do not get in a situation of not having any money and no way to get any.
RogerB
(Colorado)

Posts:5067


05/09/2006 3:48 PM  
Bruce, check your Declaration. The owner of two lots probably should be assessed for 2 lots (and has 2 votes); and the 2 lots owned by the developer probably should be assessed as well. I doubt that your Declaration says they don't have to pay until someone lives on the lot.
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