FREQUENTLY ASKED QUESTIONS

LEARN ABOUT

About AMS

Association Powers and Decision Making

Association Structure and Funds

Common Interest Developments (aka Homeowner Associations)

Director Election and Term

Enforcement and Disputes

Insurance and Liability

Maintenance, Alteration, and Defects

Meetings and Decisions

Mortgages and Liens

Officers, Managers, and Committees

Owner Assessments

Owner Assessments

a

Can an HOA charge for parking, use of recreational facilities, and other services, and is there an upper limit on these charges?

The board may impose usage and service fees as long as they do not conflict with the governing documents. The amount of the charges must be reasonable.
a

Can an owner reduce their assessment by offsetting money the HOA owes them?

An owner may not withhold assessments owed to the association on the grounds that the owner is entitled to recover money or damages from the association for some other obligation.

a

What can an owner do if they disagree with the amount of an assessment?

Under most circumstances, if an owner disagrees with the amount of an assessment, he/she can pay it under protest. They can then challenge the assessment through a court action or arbitration. If the owner does not follow these procedures or does not pay the assessment, he/she may lose the right to challenge it and be subject to a collection action and/or foreclosure.
a

What happens if an owner doesn’t pay an assessment?

If an owner does not pay a regular or special assessment, he/she is subject to a variety of fees and penalties. They are also responsible for the association’s attorney fees incurred in debt collection. The association has the power to record a lien against the property. They may also file a lawsuit to obtain a judgment against the owner, and may also pursue foreclosure. This results in an auction-like sale of the delinquent owner’s unit or lot to pay the assessment and the collection costs. If the association obtains a judgment against a non-paying owner, the association can garnish the owner’s wages and bank accounts for collection of the debt.
 
The association must have a written policy for collecting delinquent assessments. The policy should require immediate and aggressive action every time an assessment is delinquent. This approach avoids the awkwardness of responding to owners who request additional time to pay and avoids creating a perception of leniency or inconsistent treatment. Moreover, in cases where the delinquent owner has also defaulted on his/her mortgage, quick action decreases the likelihood that a mortgage foreclosure will prevent the association from collecting the unpaid assessment(s).
a

What is a special assessment and how is the amount and payment schedule established?

A special assessment is an assessment for an association expense that was under-budgeted or not budgeted. It can be made payable in a single installment or in multiple installments. In general, the board has the power to impose small special assessments and to determine the payment schedule, but some governing documents require owner approval for all special assessments. All owners must be notified of a new or increased special assessment at least 30 days before it is due.

a

Who determines each owner’s share of assessments?

The governing documents always specify how assessments are allocated among the owners, and usually require a high percentage of the owners and the mortgage lenders to approve any change in the allocation. The allocation is established by the developer at the time the governing documents are prepared and is reviewed by a governmental agency. There are no legal grounds for an owner to challenge the assessment allocation based upon fairness or equity.

Ownership and Possession

Use of Common Area

Scroll to Top