Most homeowners don’t want to think about the special assessment. But why do they cringe at this word? The reason is that the homeowners association has to levy this unplanned payment on homeowners. In simple words, it is an unexpected expense that HOA Members have to cover. There could be multiple reasons why special assessment is levied. It could be due to an increase in insurance or an event of natural disaster.
Many designated people in HOAs struggle to craft the right special assessment letter for the homeowners. You don’t need to worry anymore. We are here with the best HOA assessment letter template you can use.
Here are some examples of the templates –
(In case of snow, heavy rains, or weather disturbances)
To
The Members of (name) Homeowner’s Association
Date
Dear Homeowners
As you all know, we believe in providing the best possible services to the people living under the ownership of (name) HOA. However, due to the recent change in weather that has brought heavy rains (Mention the weather disturbance that has occurred), architectural structures like parks and buildings that are in the name of ___ HOA have been damaged and need maintenance. We are obligated to repair and maintain them again as they are looking unpleasant in the neighborhood.
We have signed an agreement with the maintenance company for the same. To bear the financial expenses, we are imposing a special assessment on all the homeowners residing under ____ HOA, effective from next month.
___ is the estimated amount for each homeowner. You are requested to pay the amount within two months to ____ account number and submit the receipt to the HOA office of financial affairs.
Sincerely
(Name)
(Sign)
(HOA designation)
Or yet another example of an HOA special assessment notice sample is (In case of increased rates)
To
The Members of (name) Homeowner’s Association
Date
Dear Homeowners
We treat our top priority to provide excellent services to the homeowners who are the residents of (HOA’s name). You must have known that insurance rates have been surged. Therefore, it’s our responsibility to cover the difference. Hence, we are imposing an assessment cost on every homeowner that will be effective from next month.
No wonder you will see this as an increased financial burden on you. But if you consider this thoughtfully, this move will enhance your property’s value in the coming times. We are looking forward to working with you in the future as we did until now and hope that you will pay your assessment promptly.
Thanks and Regards
Name
Signature
Head of the Finance Department
Situations when the board can levy a special assessment
There are set procedures for HOAs, following which it can levy a special assessment and send a special assessment letter. Sometimes, homeowners need to vote for a particular issue before the board decides to go ahead. Or they can even provide adequate notice to the community. There might be some limits imposed on the conditions under which HOA can levy this assessment.
Many places have defined laws, which include the restriction on HOA’s ability to levy the amount. For instance – Some states have a set amount that HOAs can levy during a calendar year. Ensure that the board knows all the important HOA and state laws. If you are confused, you can get in touch with the lawyer too.
Sending a letter to the homeowners
After the HOA assessment letter has been approved, get started with sending a letter to the homeowners. Include each and every detail you can think of, like – the reason for levying special assessment, total cost, payment amount required from each homeowner, the deadline for payments, if any payment plan option is available, and if the payment has to be made all at once or monthly.
Some FAQ’s around HOA Assessment:
What is a HOA special assessment?
A special assessment is an amount that homeowners association levy on homeowners under specific conditions or circumstances. This amount is then used for repairs, maintenance, installations, or other construction-related matters within the community that are difficult to cover with the existing cash reserves.
How long do I have to pay this special assessment HOA?
Homeowners or individuals need to pay special assessments when they receive the HOA special assessment notice. And the duration depends on specific circumstances and HOA rules. You should contact your HOA for the exact timeline and payment details.
Shouldn’t monthly dues be inclusive of HOA special assessments?
Usually, monthly dues are there to cover regular operating expenses and not special assessments for unexpected costs. Special assessment is levied separately to cover specific or unplanned expenses.
What if they refuse to pay or can’t pay?
Homeowners can’t refuse to pay the special assessment amount. If they do so, the association has the right to enforce penalties on them. The association can even impose late fees for unpaid amounts on them. Besides, they can also prohibit some homeowners from using common areas till the time they pay their fees. Consequences can be as harsh as you can think of. If individuals think they will be unable to make the payment, they should speak with the authorities right away.
Sometimes, the board offers the payment plan to homeowners who don’t have enough money to make the payment. People need to check in with their state laws for the same.
Final Thoughts
No homeowner feels glad when they receive a special assessment. However, they have the choice of claiming the amount on their taxes. Check that with a tax professional before claiming that. Additionally, every board must do their best to provide the homeowners with as much information as possible. Homeowners might not be happy with the decision, but seamless communication ensures that they understand the reason for you levying such an amount.