What To Expect As A Homeowner
Paying for a special assessment – especially a large one – can be stressful for homeowners who aren’t prepared.
Here are a few items you should be aware of in order to be best equipped to handle a surprise special assessment.
Paying Back Your Special Assessment Charge
Once an HOA board chooses to charge a special assessment, homeowners must pay it. But, the board members will decide the amount of time that homeowners have to pay based on various factors, including the amount of money due and how quickly the project that requires the funding must be completed.
If the special assessment doesn’t require an enormous contribution from each homeowner, it might need to be paid upfront and all at once. If the cost is going to be several hundred (or thousand) dollars per household, however, the board may allow for multiple payments and collect them over the course of a year or even longer.
HOA Special Assessment Limit
There’s no limit to how much a special assessment can cost, so what you may owe will depend on the project itself or the circ*mstances surrounding it.
Challenging An HOA Special Assessment
Special assessments are legal, and you’re likely contractually obligated to pay them according to your HOAcovenants, conditions and restrictions(CC&Rs), which are essentially the HOA’s governing documents. You can technically challenge a special assessment if you absolutely can’t or don’t want to pay it, but doing so can be risky.
It could end up going to court, and if the special assessment is found to be reasonable and within the expectations of your HOA’s CC&Rs, you may end up paying even more in legal costs. Before challenging an HOA special assessment, you should always review CC&Rs first.
If you refuse to pay a special assessment and don’t formally challenge it, you could face additional consequences. Your HOA can charge you late fees, take you to court, bar you from using community resources and common areas, and even put a lien on your property if you continue to neglect to pay.
Planning For Future Special Assessments
There isn’t much you can do to plan for special assessments, since they’ll likely be sudden and of varying costs. It can help, however, to prioritize saving some extra cash just in case you’re charged in the future. You can also raise your level of community awareness by attending board meetings and reading newsletters, where notices of upcoming special assessments are discussed.
