HOA Board Asks for $60,000 Special Assessment
Homeowners associations are the bane of some Florida residents’ existence. Many condos and homes in the Sunshine State are governed under HOAs and while these associations are in place to help homeowners, some do more harm than good.
Homeowners in the Villas of Carillon townhome community of Feather Sound are reeling after learning that their HOA board has requested a special assessment to the tune of a whopping $60,000.
The homeowners were informed of the assessment in early June. They were given notification that the HOA’s reserves had never been fully funded in its 20-year history, so now the HOA is faced with a “significant financial challenge moving forward.”
Is this the homeowners’ fault? Shouldn’t the HOA board have run things differently rather than asking homeowners to shell out an unreasonable amount of $60,000 – which is more than some homeowners’ annual salary?
A vote was set for June 20 to determine the exact payment plan. And then, in an email sent to homeowners the following day, on June 21, the entire board announced its resignation, effective immediately. The vote was tabled with no date set for it to be rescheduled.
Now residents have time to search for alternative solutions, but many are still worried. There are concerns that many people will lose their home if the vote does eventually go through. That is a lot of money and homeowners will be forced to sell if they can’t make these payments. If not, the HOA could put a lien on their house, which can lead to foreclosures.
Exorbitant Special Assessment Fees
Exorbitant special assessment fees have been on the rise since the Surfside condo collapse in 2021. The collapse, which was due to construction flaws, killed 98 people. After this tragedy happened, regulations were put in place to require more frequent inspections of condo buildings. This has led to many condo associations increasing fees to build a larger reserve for repairs.
Florida state reforms are also now requiring reserve and milestone studies as well as annual contributions to reserves. However, these rules only apply to condos that are three stories or higher. The townhomes at the Villas aren’t condos, and they’re just two stories tall. Despite this, the HOA board is claiming that insurance companies would no longer insure the complex in a few years if they could not pay for new roofs, hence the request for the $60,000.
However, a certified reserve specialist based in Sarasota claims that reserves do not have to be fully funded, but yearly assessments should be met with the appropriate full funding. There is a difference between being 100% funded and 100% funding reserve requirements for the upcoming fiscal year. In fact, she had never seen an association that was 100% funded.
Contact an HOA Lawyer Today
Fundamentally, HOAs exist to provide reasonable, uniform laws. Sometimes, this does not happen.
Financial disputes in HOAs are common. If you are dealing with issues in your HOA, seek legal help from a Bradenton homeowners association dispute lawyer from Cahall Law Firm. Let us advise you of your legal options. Call (941) 281-2019 or fill out the online form to schedule a consultation.
Source:
msn.com/en-us/money/realestate/this-problem-is-not-going-away-an-entire-florida-homeowners-association-board-just-quit-after-60k-special-assessment-dispute-here-s-why/ar-AA1p2TjI
