A special assessment involves a non-routine financial obligation outside the scope of the usual HOA dues, designed to cover special repairs, including emergency structural repairs that may be unexpected. The imposition of these assessments can represent a significant financial expenditure that creates a hardship for homeowners. Many homeowners are asking, ‘Are HOA special assessments legal in Arizona?’
Reasons HOAs Ask for Special Assessments
While regular HOA fees usually cover most routine, expected repairs and maintenance, a special assessment is occasionally required under extenuating circumstances.
Special assessments usually fall into two categories:
- Unexpected major repairs and underfunded capital improvements. These designations occur when an emergency situation, such as a collapsed roof or a damaged foundation, necessitates immediate repairs. These repairs may not be covered by current reserve funds or the association’s insurance policy.
- Planned capital projects, which involve improving structural systems, such as aging elevators, stairways in need of repair, driveways or roadways in need of repaving, and any other communal infrastructure repairs not covered in the general reserve fund.
Usually, the covenants require each homeowner to contribute an equal amount to the special assessment fund if the repairs benefit each unit uniformly, and the units are roughly the same square footage. If the units consist of differing square footage amounts, a pro-rata allocation should be used to assign each owner’s share of the repairs.
Laws Concerning Special Assessments in Arizona
While neither the Arizona Planned Communities Act nor the Arizona Condominium Act has legal provisions governing special assessments, HOA boards can still be held liable for these violations under breach of contract if the special assessment does not adhere to the provisions in the community’s Declaration of Covenants, Conditions, and Restrictions (CC&R).
HOA boards can face legal action if their request for a special assessment violates the terms and conditions in the declaration. Agreements between residents and HOA associations are legally binding, and as with any other contractual agreement, subject to litigation.
Residents can take legal action against their HOA association for breach of contract if the special assessment violates any of the conditions explicitly stated in the sections governing special assessments. If you believe the special assessment your HOA association has levied against you is unfair, it’s crucial to speak with a knowledgeable HOA lawyer to determine your rights.
HOA Statistics and Facts
HOAs represent an upward trend in community living, with HOA resident populations growing steadily since 1970. Arizona alone has an estimated 10,200 communities living under an HOA. HOAs offer residents many benefits, including amenities like gated access, private roads, playgrounds, parks, and security services.
HOAs are a significant force in the nation’s economy. They contribute billions of dollars to the financial sector through real estate taxes, home improvements, and housing services. In addition, HOAs provide valuable employment opportunities to contractors and domestic service employees.
Young professionals as well as retirees enjoy the benefits of planned community living. While the fees for community living can be significant in some areas, the median HOA member fee averaged $98 in Arizona for 2024, and most members feel the investment is worthwhile. However, unexpected costs, such as those due to special assessments, are common with HOAs.
Despite the sometimes unpredictable nature of special assessments, it’s vital for community association boards to adhere to the rules and covenants set forth, addressing these unexpected expenses in a fair and equitable manner.
Why Choose Us?
When you hire an HOA law attorney from Harper Hall PLC, we can help you understand your HOA declaration and determine whether the special assessment you are facing represents a violation of the codes and covenants of your HOA. The laws around special assessments are complex, requiring a strategic approach when taking legal action against HOA associations. We have the experience and resources you need in your HOA law case.
FAQs
How Do I Challenge an HOA Special Assessment?
To challenge an HOA special assessment, the process begins with having an understanding of the CC&R provisions in your HOA governing documents and declaration. These are the bylaws that outline the procedure for administering special assessments. If a special assessment violates these provisions and procedures, you may have a valid HOA law case. A qualified HOA lawyer can help you navigate the legal process of filing a complaint.
Can an HOA President Make Decisions Without Consulting Others?
No, it is not usually permissible for an HOA president to make decisions without consulting others. Most decisions surrounding special assessments require a supermajority vote in order to approve proposed repairs and associated expenses. HOA presidents are usually not allowed to make unilateral decisions without consulting board members and residents, even in emergency situations.
If you believe your HOA president has violated the governing rules around a community vote, it’s important to hold them accountable.
When You Need Results, Hire an HOA Law Attorney Who Is Well-Versed in Arizona HOA Laws
At Harper Hall PLC, we know Arizona HOA laws. Whether you are a resident of one of the many planned communities in the Tucson area, including Acacia Trails or Colonia Verde, we can help you understand the governing documents of your HOA association and evaluate whether a special assessment violates these standards. Contact us to learn more about how we can assist you in your HOA law case.
