How To Communicate An HOA Special Assessment

moneykey.jpg

Communication is key to receiving support for your community’s special assessment

Does your homeowners association community have a capital improvement or unforeseen expense that cannot be covered by monthly dues or back-up reserves? Then it may be time to call for a special assessment. No two words, however, can strike more dread in the hearts of homeowners, which makes passing such an assessment a hard sell. It can be done, however, if communicated properly. Here’s how.

  1. Understand why the special assessment is needed. Put together a clear case on how your community got to this point. Was an issue neglected over the years? Were reserves underfunded or monthly dues not sufficient? Did an unexpected event cause damage that must be repaired? Homeowners will want to know how the community got to this point, so be prepared with answers.
  2. Call in the experts. Pull together a team of advisors—architects, lenders, engineers, realtors—who have the expertise about your issue. Work with them to help communicate the importance of your special assessment project, what the process of repairs will look like and how it will affect the community and value of each homeowner’s property.
  3. Over-communicate. Begin by broaching the need for the project in several editions of your community newsletter. Send all financial and project information, reasoning behind the project and information about possible payment plans to homeowners. Hold a meeting so homeowners can ask questions from your panel of experts and discuss what the project would mean for them and the community. Throughout this process, be understanding of homeowners’ concerns.
  4. Be patient. As a board member, you know the ins and outs of the project and why it’s necessary. But this may be new information to your homeowners, and they’ll need time to process the information and go through the range of emotions that will follow. Unless your special assessment project is an emergency, be prepared to spend three to six months discussing your project before taking a vote.
Source: HOALeader.com, Association Times
Search All Articles
Related Articles
Caution: Bully on Board
Bully_word_imageDo you have a bully on your HOA board? The kind of person whose presence is hard to endure.
Nobody Wants to Be the Board Treasurer - What Do You Do?
768px-green_tick.svgThe most important board role and the one with the most work is the Treasurer.
Money Tips for Young People
TaxespreadsmFinancial matters can seem complicated as a Millennial.
Are You Prepared for a Blizzard?
Blizzard2017 saw some of the most extreme weather in years

More...
Most Popular
First Time Home Buyer and Other Home Loan Programs - Pennsylvania
Houseredroof120The Pennsylvania Housing Finance Agency (PHFA) offers home loans with low interest rates and fees.
What is a Reverse Mortgage?
ReversethumbA reverse mortgage is a loan that allows you to convert some of the equity in your home into cash.
Neighborhood Watch Websites Provided by Neighborhood Link
NeighborhoodwatchHow to use a free website from Neighborhood Link to facilitate and enhance a Neighborhood Watch Group
Loans for HOAs and Condo Associations
MoneyTalks about how HOAs and Condo Associations have begun using loans as an alternative to large assessments.

More...

Zip Code Profiler

Neighborhoods, Home Values, Schools, City & State Data, Sex Offender Lists, more.

Instant Home Value!