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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.