6 Ways To Get Out of Paying Your HOA’s Special Assessment

If you live in a community with a homeowners association (HOA), you may have been hit with a special assessment. Just when you least expect it, you could receive a request for hundreds or even thousands of dollars to fund a major project.

However, you might be surprised to learn that you don't necessarily have to pay such HOA bills. In fact, simply handing a check over to pay a special assessment is one of the ways even smart people waste money.

Here's what you need to know about how to fight your HOA's next special assessment — and win.

While residents pay monthly or annual dues to fund a homeowners association's reserves, occasionally there may be projects that fall outside of the scope of regular maintenance, repairs, and monthly expenses.

Funding for maintenance and upkeep — such as annual HVAC services or monthly landscaping — most likely is pulled from the HOA's reserves. However, projects like a new roof or a major renovation often require a special assessment in the form of an additional one-time or monthly recurring fee.

This assessment helps pay for the additional expenses without sending the HOA into debt. But the money comes right out of homeowners' pockets, making it tough for them to get ahead financially.

If that makes you unhappy, here are some ways you can fight a special assessment.

Whenever a special assessment is levied, make sure to check the covenants, conditions, and restrictions for your community, also known as the CC&Rs.

These are the rules that everyone must sign upon moving in. Sometimes, though, an HOA board may violate — even unintentionally — its own rules.

So, it's important to compare the CC&Rs against any special assessments to see whether the board has the right to levy such a fee, or whether there are stipulations that require a majority vote of ownership before the assessment is enacted.

If you find the HOA is in violation of its own CC&Rs, be prepared for a lengthy fight — even if you are in the right.

Homeowners have the right to ask for access to budgets or estimates involved in a special assessment.

The HOA should be trusted to do its due diligence, such as making sure it's getting the best estimate and making repairs or renovations that contribute to the value of the property. However, a homeowner should also feel empowered to double check that work.

If the homeowner believes the work being done does not justify the amount of the assessment, they can call the assessment into question and ask for further evidence from the HOA.

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The homeowners association board can't simply spring a special assessment upon you. Instead, it must give you advance notice.

Typically, the HOA is required to give notice to residents 30 to 60 days ahead of the assessment. To make sure that the notice is received by all homeowners, it must either deliver it in person or mail it via certified mail.

This process also gives homeowners time to dispute the assessment if they believe there is justifiable reason not to pay it.

Whenever a major special assessment is being requested, it makes sense to speak with an attorney and have them look over the paperwork.

To help bring down the cost, residents can pitch in to have one attorney review the assessment and look for any legal weak spots in the demand.

There is power in numbers: If several residents band together to protest a special assessment, the HOA may be more likely to listen.

Together, residents can raise a unified voice to express their concern over a special assessment that does not seem necessary or that appears to be more expensive than necessary. This is especially helpful in cases where the project being funded by the assessment is not essential — such a new pool as opposed to a new roof.

Most basic condo insurance policies will not cover the cost of a special assessment unless you have purchased loss assessment coverage.

This optional coverage can help you in the case of a special assessment due to property damage or liability costs, and it can save you the headache of worrying about fighting an assessment.

However, it won't help cover the cost of a property improvement assessment, such as paving roads.

Before moving into an HOA community, make sure you carefully consider the HOA rules and the impact of living under such governance.

From the color you can paint your house to whether you can run a business from home, there may be regulations that dictate many decisions you make.

Understanding the full breadth of the HOA's power before you move in is one of the smartest money moves for homeowners you can make.