I WAS SPRUNG WITH A HEFTY SPECIAL ASSESSMENT. IS THIS LEGAL?

Special assessments for painting projects are a common—and often misunderstood—financial event in a homeowners association (HOA). And yes, in most cases are legal as long as your Board of Directors follow the rules outlined in your HOA’s governing documents such as their CC&Rs and bylaws.

A well-financially managed HOA plans ahead for painting costs through a reserve study, which pre-estimates the remaining life and anticipates costs of major projects such as exterior painting, wood replacement and elevated deck maintenance.

HOW DID THIS HAPPEN?

Ideally, funds are gradually set aside over time. This is funded from HOA dues so that when repainting is needed the cost is already covered. However, if the HOA has underfunded those reserves, deferred maintenance, faced surprised costs in other areas of the property or faced large insurance increases a significant funding gap can quite easily appear. A special assessment becomes the mechanism to bridge that gap and ensure the work gets completed without further deterioration of the property and value.

YOU’LL MOST LIKELY COME OUT ON TOP.

In our experience, most owners easily recoup their special assessment cost in increased property values. New buyers are seeing work being completed instead of noticing a bunch of differed maintenance. This increases buyer confidence is going to show up in your home’s value.

WE GET IT.

A special assessment can feel abrupt, but it’s important to view it through a property-value lens. Fresh exterior paint, waterproofed decks and rotted wood replacement adds property value, enhances curb appeal and greatly enhances marketability.

I CAN’T AFFORD THIS.

Painting protects surfaces and prevents far more costly repairs (like interior damages) down the road. While the upfront cost may feel scary, failing to maintain the property and negatively impacting your property value is worse in the long run.

A SHARED INVESTMENT.

Cases are unique, but seeing your HOA special assessment as a community wide shared investment for the benefit of all, rather than simply an expense, is great place to start.