NO rESERVES?

Question

I live in IL town of belvidere can my HOA request a vote on a special one time assessment for reserve funds? They are operating with no reserves currently. The mear question seems like since the HOA is a few years old already that there could be some fiscal irresponsiblity in the past. I have it writiing. I thought special one time assessments had to be for current work or projects NOT RESERVES? Can someone help?

Answer 1

Yes, your HOA can do that legally, UNLESS it's bylaws specifically prohibit doing so.  The result will be determined by the vote tally.  Read your HOA bylaws, assuming you have a copy of them.  (You DO, don't you ?)

Answer 2

Sure they can. When an HOA determines the primary assessment (dues), they base that on current maket conditions for things like energy usage, wages for workers, etc. And, we all know these things tend to increase over time.

As it is, there may have been reserves in the past that have been used to pay these increases in costs. Or, rather than issuing multiple special assessments for small specific projects, they dipped into the reserves. Now that the reserves are running low, they are voting on whether to institute a special assessment to increase the HOA reserves.

If the HOA votes and the special reserve assessment is passed, you will have no choice but to pay it (or sell).

Answer 3

It depends on your HOA's charter/articles of incorporation, but, generally speaking, the HOA can do nearly anything if the majority of members vote in favor of the assessment.  

If you're concerned about fiscal irresponsibility, write letter requesting a copy of the HOA's audited financial statements.  As a member of the HOA, you have the right and responsibility to know what your HOA is doing with the funds.  

Google your state's laws regarding HOA laws.