Court Orders Recovery of Unauthorized HOA Assessments and Maintenance Fees

Summary

Can homeowners recover unauthorized HOA assessments? See the repayment ruling and the approval records boards, owners and managers should check.

The court said the charges were invalid. The homeowners still had to fight to get their money back.

Can homeowners recover unauthorized HOA assessments and maintenance fees? In this Washington case, an appellate court ordered entry of a money judgment after a trial court had declared the charges invalid. That outcome matters to anyone approving, collecting or paying association charges.

A management company imposed an $83 special assessment and increased monthly maintenance fees from $36 to $93. It had not obtained the property owner’s permission required by its management agreement. The development’s unusual ownership arrangement helps explain why that missing approval mattered.

What made the charges unauthorized?

A need for money does not establish authority to collect it. The background and assessment-authority sections explain the relationship among the governing documents, the property owner and the management company. The practical question is one every community can ask: Who has authority to approve this charge, and where is the approval recorded?

Why wasn’t winning the first ruling enough?

A declaration that a charge is invalid and a judgment requiring repayment do different jobs. The court’s reasoning explains how further relief under Washington law gave effect to the earlier ruling. The appeal did not establish the final amount recoverable by each homeowner.

What did the homeowners lose on appeal?

The result was not a complete victory. Dismissal of the consumer-protection claim was upheld, and neither side received appellate attorney fees. The analysis explains why an unauthorized charge did not, by itself, establish every element of the separate statutory claim.

What should boards, homeowners and managers take from it?

  • Boards: Check approval authority, required notices and the decision record before collecting an increase.
  • Homeowners: Ask for the documents supporting the charge. Questioning it does not automatically suspend payment obligations.
  • Managers: Confirm the required authorization before implementing a charge, especially one involving retroactive increases or unusual calculations.

Larry’s commentary also addresses what happens after a defect is established: how a prolonged dispute can follow an invalid charge, and why prompt attention to the judgment and the available remedies matters.

Why does your state matter?

This published decision applies Washington law. It does not create a nationwide right to an assessment refund. The state-law section explains why assessment limits, member approvals and available remedies must be checked against the law and documents governing your own community.

Related HOA Member Services Educational Resources

Use these resources to connect the case to the records and decisions in your community:

Need an assessment notice or resolution? Browse the Dues and Assessments Forms Library for documents to review against your community’s requirements.

Read Larry’s complete case analysis

See the facts behind the ruling, the distinction between invalid charges and an enforceable repayment judgment, and the lessons for boards, homeowners and managers. The complete article also includes the ten-step assessment-procedures infographic and the official court opinion.

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By Lawrence Szabo, Esq., HOA Member Services. Educational information. Assessment rules and remedies vary by state and governing documents; a disputed charge should be evaluated under the law applicable to your community.

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