How to Understand and Challenge Special Assessments in Colorado

Filed Under (Real Estate) on 17-01-2012

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Check your governing documents, see the paperwork, and be nice to board members.

Almost all community associations regularly assess their members—usually monthly—for the budgeted expenses of operating the association and maintaining any common property. Occasionally, associations also levy what is called a “special assessment.”

What is a “special assessment”?

As the name suggests, a special assessment is out of the ordinary and is levied for an unbudgeted expense. The money goes to either fund a particular project or meet a budget shortfall. Special assessments can be in the thousands of dollars and generate considerable community controversy.

Colorado law sets no specific limitations on the governing board’s ability to levy special assessments. However, the governing documents often incorporate restrictions on special assessments. These restrictions may limit the purposes for which a special assessment may be levied and may also prescribe procedures for levying the assessment including that any assessment be approved by a vote—sometimes a super-majority vote—of the association members.

Step 1: Learn the Rules Continue reading “How to Understand and Challenge Special Assessments in Colorado” »

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