Q: Over 55 HOA, majority voted to special assess 15K/owner, if owners don't pay - how are we who paid protected?
understand the lien/foreclosure process and it appears to be designed to protect owners who default on special assessments. What protects those who are following the rules - paying the Special Assessment, if the default owners causes underfunding so that our roofs cannot be redone.
what are the rights of paying owners?
A:
In California, if you're part of an over-55 homeowners association (HOA) and are facing issues with a special assessment, your rights as a paying owner are governed by the HOA's governing documents and state law.
When some owners default on their special assessment payments, the HOA can place a lien on those properties. This process is indeed designed to protect the association's financial interests, but it also indirectly protects paying members by ensuring the HOA has the means to fulfill its responsibilities, such as roof repairs.
If the default by some owners leads to underfunding, the HOA might have to consider alternative measures. These could include restructuring the project, seeking a loan, or levying another assessment. It's the responsibility of the HOA's board to manage these situations while adhering to the association's governing documents and state laws.
As a paying member, you have the right to participate in HOA meetings, access financial records, and vote on important matters. If you're concerned about how defaults are being handled, you can raise these issues at HOA meetings or even seek a position on the board to have more direct influence over decisions.
Additionally, if you feel the HOA is mismanaging the situation or not adhering to its legal obligations, you might consider seeking legal advice. An attorney can review the specifics of your case and advise on potential actions, such as a lawsuit against the HOA for breach of fiduciary duty or mismanagement.
Remember, active involvement and communication within your HOA are key to addressing these kinds of challenges effectively. Keep informed about the association's financial status and decisions, and don't hesitate to voice your concerns or suggestions.
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