HUGE Assessment increase

[inapickle99]

What is the name of your state (only U.S. law)? Colorado

My condo owners assoc (45 units) created a 2009 budget with assessment increases over 300% higher than 2008, as well as a very large increase to our quarterly operating fee. 2007 & 2008 we each paid just over 100/month total, now we are each billed over $300/month total (including assessments). I am behind and they are threatening to send my first quarter 2009 to collections March 31.

My CC&R states that the board can create the budget and it will take place unless voted down by 67% vote. Not sure if it needs 67% of those present at the annual meeting or 67% of owners. They had the annual mtg, and 67% did not vote no (because they were threatened that a "no" vote would result in an immediate $10,000 assessment), so the budget passed. I could not find anything in CC&R about a limit to the increase in budget.

There is NO WAY some of us can afford this huge increase, so they are threatening foreclosure. Is it lawful to enforce such a huge increase with only minority approval? Help!

[HomeGuru]

Originally Posted by inapickle99

What is the name of your state (only U.S. law)? Colorado

My condo owners assoc (45 units) created a 2009 budget with assessment increases over 300% higher than 2008, as well as a very large increase to our quarterly operating fee. 2007 & 2008 we each paid just over 100/month total, now we are each billed over $300/month total (including assessments). I am behind and they are threatening to send my first quarter 2009 to collections March 31.

My CC&R states that the board can create the budget and it will take place unless voted down by 67% vote. Not sure if it needs 67% of those present at the annual meeting or 67% of owners. They had the annual mtg, and 67% did not vote no (because they were threatened that a "no" vote would result in an immediate $10,000 assessment), so the budget passed. I could not find anything in CC&R about a limit to the increase in budget.

There is NO WAY some of us can afford this huge increase, so they are threatening foreclosure. Is it lawful to enforce such a huge increase with only minority approval? Help!

**A: read your By-Laws as to what constitutes a quorum majority for acceptance. Generally, there should not be a clause that states % of owners present at the meeting; due to the fact that many owners may not be actually present but may have given proxy to another owner or agent who then has voting power.

[HuAi]

OP - usually increased assessments are due to unexpected expenses. Did the condo board discuss with you at the meeting why your association needed to raise 10k?

[inapickle99]

The COA has an unexpected expense of restructuring the parking lot of one of the buildings which the town has said is eroding into the road below. The COA claims that they can't collect from the soils tester, the paver, the general contractor, etc. The buildings are 6 years old. I have not pursued the further implications, b/c the COA is so eager to just charge the owners, I'm just trying to defend myself...

[HomeGuru]

Originally Posted by inapickle99

The COA has an unexpected expense of restructuring the parking lot of one of the buildings which the town has said is eroding into the road below. The COA claims that they can't collect from the soils tester, the paver, the general contractor, etc. The buildings are 6 years old. I have not pursued the further implications, b/c the COA is so eager to just charge the owners, I'm just trying to defend myself...

**A: you need to get on the Board and investigate.

[inapickle99]

I absolutely would if I weren't finishing grad school in another state. My distance has me handcuffed. No state laws prohibit large assessments or budget variations beyond a certain percent without a majority vote? Ooof.

[HomeGuru]

Originally Posted by inapickle99

I absolutely would if I weren't finishing grad school in another state. My distance has me handcuffed. No state laws prohibit large assessments or budget variations beyond a certain percent without a majority vote? Ooof.

**A: read your condo docs.