Legal assessment? Maybe or Maybe Not

[311fan]

In January, our Board put a $5.00 per month additional assessment on each unit owner until the end of the year "to cover the increase in insurance costs" for which they originally failed to take this into consideration when formulating the budget. Now beginning May 1st, 2012 the board put an additional $40.00 per month assessment again until the end of the year to cover additional insurance costs most specifically flood insurance costs. My question is the way the minutes were written and approved for which I will quote exactly how they were written:

"Flood insurance consensus is for 1000 deductible, which is roughly 40 per month per unit. Full amount of 123K to be paid lump sum, open another account for flood insurance is suggested. There has to be an assessment. Do we accept deductible of 1000? C_____ motions M_____ seconds. All in favor."

My concern is the way this was written and if it was legal for the Board to put the $40.00 per month per unit assessment. The way I read this is that they motioned on the deductible not the assessment of $40.00.

Please let me know your opinion. Thank you.

[sMargaret]

One could perhaps make the argument that the only action they could take would be to set what the deductible was going to be, which would in turn drive the cost per unit.

Certainly, according to the minutes, members understood that by voting for the deductible, they were also dealing with the consequence - the assessment.

I would think that a point of order, at the time that the vote was taken would have been in order. I would say, that in my opinion, that you don't have a continuing breach of order - except for RONR, page 251, item ©, where you would have a continuing breach if:

"any action has been taken in violation of applicable procedural rules prescribed by...law"

It is possible that your condo or home owners association (or whatever it is) has some law around what you must vote on - that's up to you to determine, though.

[JohnR]

My concern is the way this was written and if it was legal for the Board to put the $40.00 per month per unit assessment.

Certainly it's sloppy and reflects what can happy when things get too casual. But you are asking about legality and administration, neither of which is dealt with by Robert's Rules.

[Gary Novosielski]

Bear in mind that, according to p. 572:

Members cannot be assessed any additional payment aside from their dues unless it is provided for in the bylaws.

So, it would be a good idea to check your bylaws to make sure that the procedure for assessing additional fees is being followed.

[311fan]

Thanks for everyone's input....