Assessments levied by Residential Subdivisions, commonly known as “Homeowners Associations” and condominium Associations often fall into one of three categories:
1) General Assessments
2) Special Assessments
3) Individual Assessments
One should take care when levying an assessment that the proper type of assessment is levied and the proper steps are taken prior to collecting on that assessment if it goes unpaid by the homeowner.
General Assessments
General Assessments are Assessments levied by an Association on a regular basis that are applied uniformly against all owners. They may be levied on a monthly, quarterly, bi-annual, or annual basis. These are by far the most common type of assessment levied by a Property Owners Association.
Special Assessments
Special Assessments are Assessments that are levied uniformly against all owners within the Association on a one-time basis. Under most Declarations, before a Board of Directors may levy special assessments they must be approved by a vote of the members of the Association. However, under limited circumstances, often a Board of Directors may levy a special assessment.
Individual Assessments
Individual Assessments are Assessments that are levied by an Association against a singular owner on a non-uniform basis. Examples include:1) Assessment levied for damage to the common areas; and2) Assessments levied by a condominium owner for that owner’s use of water and/or electricity if the Condominium pays for all water usage and levies individual assessments for reimbursement by the individual owners based upon the usage of their Unit.