In condominiums, the board of directors can sometimes charge additional fees beyond regular dues. These extra fees, also known as special assessments, provide a financial lifeline for unexpected expenses and major projects.
But while special assessments are crucial for maintaining value and addressing urgent needs, they can be a source of contention among residents and board members alike. Understanding the common causes of such disagreements can help condo boards prepare for – and hopefully – avoid them.
Lack of transparency
When a condo board charges additional fees, the cause for concern is often a lack of transparency. This usually happens when the board does not provide enough explanation about the need for extra charges. Disagreements can also arise when residents do not have enough information about the project details, costs or timeline.
Avoiding this dispute can be as simple as providing comprehensive, clear communication about the assessment. For example, boards can hold informational meetings or distribute written explanations to residents.
Financial burden
Not everyone in the building can easily afford extra condo fees, and this can lead to disagreements between board members and unit owners.
A potential workaround is to offer payment plans to ease the financial burden. While it is not a perfect solution, it can reduce the immediate impact on owners and may help them be more agreeable.
Perceived unfairness
Special assessments can lead to disputes when they seem to benefit certain units more than others. For example, if the board levies an assessment for a parking lot renovation, it may seem unfair to residents who don’t own cars and never use the lot.
To avoid this kind of dispute, condo boards can distribute the assessment according to ownership percentages outlined in the association’s governing documents.
Questionable need
Condo boards may charge extra fees for special projects that aim to increase the building’s value. However, some residents may disagree over the urgency or importance of the project.
Providing thorough documentation to residents can help avoid disputes as it can support the need for the project. Board members can explain why the chosen course of action is best and how it can benefit the entire community.
Being proactive can help condominium boards reduce the likelihood of disputes or – at the very least – lessen the number of owners who will come forward with complaints.
When disagreements do happen, building owners and board members can use the services of a real estate attorney to put out fires and address concerns in a way that will benefit everyone.