Owners may be assessed for special projects
I bought a home in a gated community in 2009 and have been paying the maintenance dues annually since then. Last year, the board notified the residents that it now would be charging a road assessment fee of an additional $500 — $250 the first year and then $50 a year until paid in full. Is my association allowed to start making up fees six years after I bought the property?
Yes. Special assessments are legal, but certain formalities must be followed. Whether you live in a condo or a homeowner’s association, there are two types of assessments. Regular assessments, often referred to as maintenance dues, are collected by the association for payment of the common expenses used in running the community.
Special assessments are levied against the owners for unexpected or infrequent expenses that have not been budgeted for. As an owner in a community association, you are responsible for paying both types of assessments, and if you don’t, you may be subject to foreclosure and fees to pay for the foreclosure.
Depending on your individual association’s rules, special assessments may be approved by either the owners or the board of directors. Either way, all unit owners must be notified directly by mail and by having the notice conspicuously posted at least 14 days before the meeting to vote on the assessment. The notice must include a statement regarding what the assessments are for and how much they will cost.
Money collected for a special assessment may be used only for the purpose that was approved. If, after the project is complete, there is any money left over, the association can either return it to its members or apply it to their assessment accounts.