Assessment Increase – Year 2021
From the Board of Directors Meeting
Tuesday August 25, 2020
2021 Assessment amount is $324 per year, due semi-annually starting January 2021, $162 in January 1, and $162 in July 1.
2021 Draft Budget:
- Tammy Rowles moved, Tim Seyfarth seconded that the Board approve the draft “A” 2021 budget which was recommended by the Budget & Finance Committee. Motion carried 4-0.
- Tammy Rowles moved, Sharon Perry Gibson seconded that the Board approve the year 2021 annual assessment rate to increase 8% from $300.00 to $324.00 annually, as recommended by the Budget & Finance Committee. This increase percentage is allowed due to past Boards incorporating maximum annual assessment increases, as permitted in the CC&R’s of the association, thus allowing for an increase of more than 5% in a given year.
The Maximum Annual Assessment:
The maximum annual assessment, and remember this is the maximum annual assessment, differs from the annual assessment. What this allows for though, as addressed in the documents of the association, is for a board to have the ability to raise the annual assessment a maximum 5% each year, for multiply years without actually raising the annual assessment. Then, if a situation calls for it, the assessment can be raised more than the allowable 5% per year, without having to go out and get membership approval. This was incorporated in years 2010-2014, see below chart showing assessments and calendar years. In other words, the maximum assessment is there for, where a board of directors can initiate these resources, because they have already been pre-approved. Many HOA’s who did not budget properly, and do not exercise a maximum annual assessment, may be more at risk for special assessments which is something we want to avoid at all costs.