HOA Special Assessment Notice

NOTICE OF SPECIAL ASSESSMENT

[ASSOCIATION NAME]

[ASSOCIATION NAME]
[ASSOCIATION ADDRESS]
[CITY, STATE ZIP]
[PHONE]
[EMAIL]

Date: [DATE]

SENT VIA: ☐ First Class Mail ☐ Certified Mail ☐ Email ☐ Hand Delivery

To: All Owners and Members

Re: Notice of Special Assessment

Dear Homeowner:

The Board of Directors of [ASSOCIATION NAME] hereby provides notice that a special assessment has been [APPROVED BY THE BOARD / APPROVED BY THE MEMBERSHIP] to fund [BRIEF DESCRIPTION OF PROJECT/PURPOSE].

SPECIAL ASSESSMENT SUMMARY

APPROVAL INFORMATION

Board Approval

Board Meeting Date: [DATE]

Board Vote: [X] in favor, [X] opposed, [X] abstained

Member Approval (if required)

☐ Member approval was required because:

• ☐ Special assessment exceeds [5%] of budgeted gross expenses
• ☐ Governing Documents require member approval for special assessments
• ☐ Amount exceeds threshold specified in Declaration ($[AMOUNT])
• ☐ Other: [SPECIFY]

Member Vote Date: [DATE]

Member Voting Results:

• Total voting power: [NUMBER]
• Votes cast: [NUMBER] ([X]% of voting power)
• Votes in favor: [NUMBER] ([X]%)
• Votes opposed: [NUMBER] ([X]%)
• Required for approval: [MAJORITY / SUPERMAJORITY / X%]
• Result: APPROVED

☐ Member approval was not required because:

• ☐ Special assessment does not exceed [5%] of budgeted gross expenses
• ☐ Emergency exception applies (see below)
• ☐ Governing Documents authorize Board to levy without member approval
• ☐ Other: [SPECIFY]

EMERGENCY SPECIAL ASSESSMENT (IF APPLICABLE)

☐ This special assessment qualifies as an emergency assessment under applicable law because:

☐ Extraordinary expense required by court order - [DESCRIBE]

☐ Extraordinary expense necessary to repair or maintain common area where threat to personal safety - [DESCRIBE]

☐ Extraordinary expense necessary to repair or maintain common area where threat to property if not completed immediately - [DESCRIBE]

The Board has determined that this emergency exists based on:
[EXPLANATION OF EMERGENCY AND BASIS FOR DETERMINATION]

PURPOSE AND JUSTIFICATION

Project Description

[DETAILED DESCRIPTION OF THE PROJECT OR EXPENSE BEING FUNDED]

[EXAMPLE: The roof on the clubhouse building (constructed in [YEAR]) has reached the end of its useful life. Recent inspections have revealed significant deterioration, including cracked and missing shingles, damaged flashing, and evidence of water intrusion into the building. The roof replacement project will include removal of existing roofing materials, inspection and repair of underlying structure as needed, installation of new [MATERIAL] roofing system, replacement of gutters and downspouts, and a [X]-year warranty.]

Necessity

[EXPLANATION OF WHY THIS EXPENSE IS NECESSARY]

[EXAMPLE: Failure to replace the roof will result in continued water damage to the building interior, potential mold growth creating health hazards, and structural damage that would significantly increase repair costs. The building inspector has advised that the roof should be replaced within the next [X] months to prevent further damage.]

Alternatives Considered

PROJECT BUDGET

Funding Sources

YOUR SPECIAL ASSESSMENT

Property Address: [PROPERTY ADDRESS]
Lot/Unit Number: [LOT/UNIT NUMBER]
Account Number: [ACCOUNT NUMBER]

PAYMENT OPTIONS

Option 1: Lump Sum Payment

Pay the full special assessment amount by [DATE] and avoid any payment plan fees.

Amount Due: $[AMOUNT]
Due Date: [DATE]

Option 2: Payment Plan

[SELECT APPLICABLE PLAN]

[X]-Month Payment Plan:

☐ Interest/Finance Charges: Payment plan includes interest at [X]% per annum.

☐ No Interest: Payment plan does not include interest if all payments are made on time.

Option 3: Extended Payment Plan (If Available)

For owners experiencing financial hardship, an extended payment plan of up to [X] months may be available upon application. Contact [CONTACT NAME] at [PHONE] or [EMAIL] to apply.

Extended payment plan terms:
☐ Interest at [X]% per annum
☐ Minimum down payment of [X]% required
☐ Automatic payment enrollment required
☐ Subject to approval

PAYMENT METHODS

Make checks payable to: [ASSOCIATION NAME]

Mail to:
[ASSOCIATION NAME]
[PAYMENT ADDRESS]
[CITY, STATE ZIP]

Online Payment: [URL]

ACH/Auto-Pay: Complete enclosed authorization form

Important: Please write "Special Assessment" and your Account Number on your payment.

CONSEQUENCES OF NON-PAYMENT

Failure to pay the special assessment when due will result in the following:

Late Fee: $[AMOUNT] or [X]% of unpaid balance

Interest: [X]% per annum on unpaid balance

Lien: Unpaid special assessments become a lien against your property

Collection Action: Account may be referred for collection; you will be responsible for collection costs and attorney's fees

Foreclosure: Continued non-payment may result in foreclosure proceedings

PROJECT TIMELINE

CONTRACTOR INFORMATION

Contractor: [CONTRACTOR NAME]
License Number: [LICENSE NUMBER]
Contact: [CONTACT NAME]
Phone: [PHONE]

The contractor was selected through a competitive bidding process. [NUMBER] bids were received, ranging from $[LOW] to $[HIGH].

UPDATES AND COMMUNICATION

The Association will provide project updates:
☐ Monthly email updates
☐ Posted on community website: [URL]
☐ Posted at clubhouse/common area
☐ At Board meetings

For questions about the project, contact:
[CONTACT NAME]
[PHONE]
[EMAIL]

FREQUENTLY ASKED QUESTIONS

Q: Why wasn't this covered by reserves?
A: [EXPLANATION - e.g., The reserve study projected this replacement for [YEAR], but accelerated deterioration required earlier action. Reserve funds will contribute $[AMOUNT] to the project, with the special assessment covering the balance.]

Q: Can I pay my assessment early?
A: Yes, you may pay the full amount at any time before the due date.

Q: What if I sell my property before the assessment is paid?
A: You are responsible for all assessment payments through the date of sale. Any unpaid balance will be disclosed to the buyer and typically paid at closing.

Q: What happens if the project costs less than estimated?
A: If the actual cost is less than the budgeted amount, the Board will determine the best use of excess funds, which may include a credit to owners or transfer to reserves.

Q: What if the project costs more than estimated?
A: The budget includes a [X]% contingency. If additional funds are needed, the Board will evaluate options including use of reserves, reducing scope, or an additional assessment (with member approval if required).

APPEAL / DISPUTE RESOLUTION

If you believe the special assessment was improperly levied, you may:

1. Request Internal Resolution: Submit a written request to meet with the Board within [30] days of this notice.

2. Alternative Dispute Resolution: [STATE-SPECIFIC ADR PROCEDURES]

3. Legal Action: Consult with an attorney regarding your rights under applicable law.

ENCLOSURES

☐ Payment coupon(s)
☐ Payment plan selection form
☐ ACH Authorization form
☐ Project summary and budget details
☐ Board meeting minutes authorizing special assessment
☐ Member vote results (if applicable)
☐ Return envelope

Sincerely,

[ASSOCIATION NAME]
Board of Directors

______________________________
[NAME], President

______________________________
[NAME], Treasurer

Date: ______________________________

SPECIAL ASSESSMENT PAYMENT SELECTION FORM

Owner Name: ______________________________
Property Address: ______________________________
Account Number: ______________________________

Please select your payment option:

☐ Option 1: Lump Sum Payment
I will pay $[AMOUNT] in full by [DATE].

☐ Option 2: [X]-Month Payment Plan
I will pay $[AMOUNT] per month beginning [DATE].

☐ Option 3: Extended Payment Plan Request
I am experiencing financial hardship and request consideration for an extended payment plan. (Please attach explanation and supporting documentation.)

Payment Method:

☐ I will mail payment(s)
☐ I will pay online at [URL]
☐ Please enroll me in ACH auto-pay (complete attached form)

Signature: ______________________________ Date: ______________

Please return this form to:
[ASSOCIATION NAME]
[ADDRESS]
Email: [EMAIL]

End of Document