M.H. from Connecticut writes:
Dear Mister Condo,
Can condo fees in CT increase a second time during the year in order to meet the approved budget?
Mister Condo replies:
M.H., it would be most unusual for common fees to change mid-year unless the membership had previously voted to do so at the annual meeting. However, from a practical standpoint, if the association found itself lacking funds and in dire need of additional money to operate, a special assessment could be voted and levied to make ends meet and allow the association to meet its financial obligations. Many condominiums are limited to a percentage (15%) increase in fees from year to year. If the fees were adjusted mid-year, they would still have to follow the formula of total fee increase from the previous year. Either way, the association is in jeopardy of any unit owner challenging the fee increase. My guess is that if it were taken to court, the association would not prevail. Of course, if the money is needed, that would only leave a special assessment or, perhaps, an HOA loan to allow the association to meet its financial obligations. You didn’t mention why the increase was needed. I am hearing from more and more associations that COVID-19 unemployment is leading to more delinquencies within associations. If that is the case here, your Board would be wise to devise a strategy for dealing with increased delinquency until the pandemic passes and employment return to pre-pandemic levels. All the best!
Hello Mr. Condo,
Is there a limit to how many special assessments a condo association in Connecticut can pass on to it’s owners? We just finished one that ran from January 2021 until June 2021 for our pool(109.00 extra per month). Additionally, we just received notification 3rd week of August that a second one will be starting in September and will run until January of 2022(124.00 extra per month). They claim that the deductible for the master insurance policy doubled due to multiple lawsuits and outdated electric meters(6 buildings, 96 units). A notification letter was sent, then the assessment coupon book was sent a week later (both before the owners meeting which is scheduled for 9/2/21. The original letter mentioned a 15 percent increase. Any info would help. I don’t think they are handling this properly.
Thank you,
Michele
M., without knowing all of the details (exact dates of Special Assessment levy and such) I cannot offer an opinion on whether they handled the levying of the Special Assessments correctly. However, from what you have described it sounds as though they have done what they need to do and I am guessing your association is in desperate need of the funds for capital improvement projects, which will benefit all members of the association, including yourself. At the end of the day, many associations are facing huge insurance premium increases and the only way to pay for these increases is by assessing owners. The law requires that the insurance be paid for by the association. That means members of the association must pay for the insurance through their common fees. Rather than have multiple Special Assessments, it may be time for the Board to take a long, hard look at the budget and increase the monthly common fees the next time that the budget comes up for adoption and ratification. Inflationary trends are likely to continue and everything is getting more expensive. Unfortunately for condo owners, that means it is going to cost more to own a condo. All the best!