Attention Board Members: Understanding Special Assessments to Fund Your Community Repairs.
Special assessments are a common way for Homeowners Association to fund necessary repairs or improvements to their communities if they do not have finances in their reserves or they do not want to dip into their reserve funds. In this article, we'll go over what special assessment projects are, how they work, and what you need to know if your community is considering one.
What are special assessment projects?
Special assessment projects are a way for homeowners to pay for necessary repairs or improvements to their communities or buildings. They are typically used when the cost of the repairs or improvements is too high for the homeowner to pay for out of pocket. Instead of paying for the repairs all at once, homeowners can spread the cost out over a period of time.
How do special assessment projects work?
Special assessment projects are typically initiated by the homeowners' association. The project is usually proposed by a contractor or engineer, who identifies the repairs or improvements that need to be made. The cost of the project is then estimated, and a special assessment is levied on the affected homeowners.
The assessment is typically spread out over a period of several years, and is added to the property owner's regular bill. Homeowners can either pay the assessment all at once, or spread the payments out over the life of the assessment.
What do you need to know if your community is considering a special assessment project?
If your community is considering a special assessment project for your property, there are a few things you should keep in mind. First, as a Board Member or Manager be sure to carefully review the proposed repairs or improvements, and make sure they are necessary and will add value to your property.
Second, for Managers, be aware of the cost of the project, and make sure your community is assessing for enough. In the common case of change orders or additional items added make sure your community doesn’t only assess for the cost of the project but an additional 20% for contingencies. Be sure to get multiple bids from qualified
HOA contractors such as EmpireWorks to make sure you're getting a fair price.
Conclusion
In conclusion, special assessment projects can be a great way for communities to fund necessary repairs or improvements to their communities or buildings. By spreading the cost out over time, property owners can make these repairs more affordable. However, it's important to carefully review the proposed repairs or improvements, and make sure you can afford the additional assessment before agreeing to the project.
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