Is is legal if my HOA wants us to pay association fees and also include a separate check for 10 months to pay for a new boiler?

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Is is legal if my HOA wants us to pay association fees and also include a separate check for 10 months to pay for a new boiler?

I own a condo and have lived here for about 5 years now. They just raised our association fees quite a bit. We have a bookkeeper now who admits to having no experience other than what he looks up online. After raising our fees, I received a letter stating we need a new boiler system before winter next year. This will cost at least $50,000. They now want each unit (there are 50) to pay the ridiculous association fees, and include a separate check for $100 (for the next 10 months) to pay for the boiler. Is this legal? Isn’t that what the original fees are for? Or reserve funds?

Asked on December 28, 2011 under Real Estate Law, Iowa

Answers:

Michael Thomas / Thomas & Associates, Attorneys at Law

Answered 9 years ago | Contributor

If your condo is in California, the answer depends on your association's annual budget.  An association is entitled to levy a special assessment to cover common area repairs by board vote if the assessment is no more than 5% of the association's annual budget.  If it exceeds that amount, the association must put the special assessment out to member vote.


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