Does a condo association have to pay interest on money that was required for an assessment, with the knowledge they would have to return a portion of the money to some unit owners who already had the required work done.
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Does a condo association have to pay interest on money that was required for an assessment, with the knowledge they would have to return a portion of the money to some unit owners who already had the required work done.
My condo association assessed unit owners 20,000. This was for a roofing project
which include replacing skylights to non-opening skylights. If you already replaced
the skylights you would receive 650 back. It took over two years for them to give
back the money to the people that did not need their skylights replaced. The
association actually knew who didn’t need them replaced before the project started.
Are they required to pay interest on that 650?
Asked on December 27, 2017 under Real Estate Law, Alaska
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
There is n law specifically requiring interest in a case like this (when a condo association returns money not needed for a project). You can make an argument that even without a specific requirement, in this case, they should have to, since they held the money so long and knew in advance that it would not be needed, but why bother doing anything? Interest rates (saving accounts, such as they would have put the money into) have been under 1%; they would owe you probably $5 - $10 per year, or $10 - $20 total, *at most* (very possibly less, if they are getting the kind of interest rates my saving account gives me), making any kind of action pointless.
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