HOA CC&Rs Should Provide for the Power to Impose Special Assessments Against Individual Members

An important function of a homeowners association’s board of directors is to impose assessments on the association members in order to generate funds that are required for the maintenance, repair, and replacement of common areas and the conducting of association business. The power to impose necessary assessments is provided for in state statutes and the HOA CC&Rs and the types of assessments that are commonly imposed by an association are typically referred to as either “regular” or “special.” Regular assessments are a fixed amount that is generally paid monthly or quarterly by the association’s members to cover the association’s budgeted expenses. Special assessments are imposed only when additional funds are needed to cover various expenses that are not provided for in the association’s budget or when there are insufficient funds available for necessary expenses. An important third type of assessment that is frequently not specifically provided for in state statutes or HOA CC&Rs is a “reimbursement assessment” that can be imposed upon individual members.