HOA Assessments

[parris67]

What is the name of your state (only U.S. law)? Arizona
Do the HOA by-laws superseed state laws? ARS-33-1803 say maximum of 20% assessment per year without a vote is state law. I ask because the Board of Directors raised the 2009 budget witch equalled a 15% assessment without letting us know. Monthly dues went from $95 to $110 per month. The HOA CCRs say something about consumer price index and nothing about a 20% maximum?


CCRs say:

Covenant for maintenance assessments

5.3. Maximum Annual Assessment.

(a) Until January 1 of the year immediately
following the conveyance of the first lot to a purchaser, the
maximum annual assessment for: each Lot shall be Six Hundred
Sixty Dollars ($660.00) for each lot.

(b) From and after January 1 of the year
Immediately following the conveyance of the first Lot to a
Purchaser, the Board may without a vote of the membership,
Increase the maximum annual assessment during each fiscal year
of the Association by an amount proportional to the amount of
Increase during the prior fiscal year in the Consumer Price
Index for All Urban Consumers (All Items), U.S. City Average,
Published by the United States Department of Labor, Bureau of
Labor Statistics (1967 = 100). or in the event said index
ceases to be published, by any successor index recommended as a
substitute there for by the United States government.

(c) From and after January 1 of the year
immediately following the conveyance of the first lot to a
purchaser, the maximum. annual assessment may be increased by an
amount greater than the maximum. increase allowed pursuant to
(a) above, only by a vote of Members entitled to cast at least
two-thirds (2/3) of the votes entitled to cast by Members
who are voting in person or by proxy at a meeting duly called
for such purpose.

(d) The Board may fix the annual assessment in
any amount not in excess of the maximum annual assessment.



Thank you,

[HomeGuru]

Originally Posted by parris67

What is the name of your state (only U.S. law)? Arizona
Do the HOA by-laws superseed state laws? ARS-33-1803 say maximum of 20% assessment per year without a vote is state law. I ask because the Board of Directors raised the 2009 budget witch equalled a 15% assessment without letting us know. Monthly dues went from $95 to $110 per month. The HOA CCRs say something about consumer price index and nothing about a 20% maximum?


CCRs say:

Covenant for maintenance assessments

5.3. Maximum Annual Assessment.

(a) Until January 1 of the year immediately
following the conveyance of the first lot to a purchaser, the
maximum annual assessment for: each Lot shall be Six Hundred
Sixty Dollars ($660.00) for each lot.

(b) From and after January 1 of the year
Immediately following the conveyance of the first Lot to a
Purchaser, the Board may without a vote of the membership,
Increase the maximum annual assessment during each fiscal year
of the Association by an amount proportional to the amount of
Increase during the prior fiscal year in the Consumer Price
Index for All Urban Consumers (All Items), U.S. City Average,
Published by the United States Department of Labor, Bureau of
Labor Statistics (1967 = 100). or in the event said index
ceases to be published, by any successor index recommended as a
substitute there for by the United States government.

(c) From and after January 1 of the year
immediately following the conveyance of the first lot to a
purchaser, the maximum. annual assessment may be increased by an
amount greater than the maximum. increase allowed pursuant to
(a) above, only by a vote of Members entitled to cast at least
two-thirds (2/3) of the votes entitled to cast by Members
who are voting in person or by proxy at a meeting duly called
for such purpose.

(d) The Board may fix the annual assessment in
any amount not in excess of the maximum annual assessment.



Thank you,

**A: it appears that the By-Laws were not followed. Seek legal counsel on that issue. In reality, the assessment is needed regardless.