Court Rules COVID-19 CARES Act Protections Do Not Apply to HOA Assessments

This case involves a dispute between a condominium owner (“Owner”) and his homeowners association (“Association”) over the issue of whether COVID-19 emergency orders passed under the CARES ACT in March of this year require Association to forebear collection of a special assessment from Owner, who claimed to be experiencing financial hardship due to COVID-19.

Before passage of the CARES Act due to the onset of COVID-19, Association levied a special assessment in the amount of $47,727 against each of the condominium owners to raise funds needed for repairs and improvements of the condominium complex. The CARES Act was passed before Owner paid the special assessment and then Owner maintained that under the provisions of the Act, Association had to forebear collection of the special assessment from him for the period of protection provided by the Act.

Under the CARES Act, a borrower with: