Latest news with #specialassessment
Yahoo
06-07-2025
- Business
- Yahoo
How a single shed in a Florida backyard triggered a flurry of HOA lawsuits costing local homeowners thousands
Formerly friendly neighbors in Stonebriar, a quiet subdivision in northern Pinellas County, Florida, are at odds over an $82,000 special assessment the homeowner's association (HOA) has levied. It's a lot of money — $1,400 per household. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it 'It's insane to ask people to pay that,' resident Ken Christensen told ABC Action News. 'We have lives besides our mortgage payments. I personally have a son in hockey. There are people with kids in college.' Unlike regular HOA dues, special assessments are meant to be one-time fees designed to cover unexpected expenses. But this one follows another special assessment that the Stonebriar Improvement Association levied last year to the tune of $35,000, or $595 per household, The situation has caused anger to erupt in the once-peaceful East Lake community of 59 single-family homes. 'When we all got the letter that showed why this assessment was necessary, people really reacted,' resident Dorothy King said. What has residents at odds is the rationale. The board is raising the money to pay its legal fees in a long legal battle with one resident: John Siamas. As with so many battles, it started over something seemingly small. It all began in 2020 when Siamas installed what he describes as a small "plastic, snap-together shed" in his backyard. The HOA board said the structure violates a rule prohibiting outbuildings in Stonebriar, and is suing Siamas over the matter, demanding he take it down. 'He put up a shed and the covenants indicated no sheds — and the board nicely asked him to remove it. He said no,' resident John Papa said. 'One thing after another, now we've got a lawsuit on our hands.' Read more: No millions? No problem. With as little as $10, here's of diversified assets usually only available to major players For his part, Siamas says he told the Stonebriar Improvement Association board about his plan to install a shed, and the board never rejected it. Mind you, they didn't agree to it, either. Now Siamas has escalated an already tense situation with the board by attempting to trademark the HOA's name: Stonebriar Improvement Association, Inc. 'I think it's foolish,' Papa said. 'Why would he do it?' Many residents counter that the HOA's costly legal battles are foolish. The trademark case will cost an estimated $425 per hour over 141 hours through to November 2026. Former Stonebriar HOA president Stephen King says the trademark battle is unnecessary as the Stonebriar Improvement Association has served the community well for 33 years without having a trademarked name. Meanwhile, Siamas has filed federal complaints against HOA president Gayle Zelcs over the board's trademark challenge, saying she and the board are trying to ruin him financially and force him to 'sell his home' and move out of Stonebriar. For his part, Christensen agrees that the board and its president are causing unnecessary financial hardship in a battle he describes as 'nonsense.' He wants things to return to normal. 'It's a good family neighborhood,' he said. 'It used to be peaceful, no drama.' Living in an HOA-governed community comes with financial responsibilities that can go well beyond monthly dues. Special assessments for out-of-budget anomalies like legal fees, structural repairs or emergencies can cost homeowners thousands of dollars, often with little warning. Unlike traditional emergency expenses (like a car repair or medical bill), HOA assessments may be non-negotiable and time-sensitive, with tight payment deadlines and legal consequences for nonpayment. While you can't avoid them altogether, there are things you can do to ensure you're prepared: Budget for the unexpected. Plan for financial risks by building a designated HOA emergency reserve in addition to your general emergency fund. Many HOAs set aside 25 to 40% of their monthly dues for reserves to avoid sudden assessments. For individual homeowners planning, that translates to $2,000 to $5,000, ideally. To estimate what you'll need, review your HOA's budget, reserve studies (which outline anticipated expenditures) and minutes to understand upcoming projects and potential liabilities. If you see any red flags — lawsuits, aging buildings, vague expense reports — increase your reserve savings accordingly. Review governing documents early. If you're in the market for a condominium, understand the rules for special assessments before buying. For example, Florida law requires at least 14 days' notice before forming a special assessment meeting. Push for transparency. Attend meetings, demand clear breakdowns of fees and question exorbitant or unusual costs — like $82,000 in trademark legal expenses. Build community alliances. Get to know your neighbors and understand their concerns and questions. When you're in a unified front, it's easier to vote in new board members, renegotiate payment terms or challenge unfair assessments. Know your rights. Condominium boards can't always apply unlimited assessments without owner approval. HOAs may face similar constraints depending on the state law and bylaws they're subject to. If board actions seem suspect, seek legal counsel. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
06-07-2025
- Business
- Yahoo
How a single shed in a Florida backyard triggered a flurry of HOA lawsuits costing local homeowners thousands
Formerly friendly neighbors in Stonebriar, a quiet subdivision in northern Pinellas County, Florida, are at odds over an $82,000 special assessment the homeowner's association (HOA) has levied. It's a lot of money — $1,400 per household. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it 'It's insane to ask people to pay that,' resident Ken Christensen told ABC Action News. 'We have lives besides our mortgage payments. I personally have a son in hockey. There are people with kids in college.' Unlike regular HOA dues, special assessments are meant to be one-time fees designed to cover unexpected expenses. But this one follows another special assessment that the Stonebriar Improvement Association levied last year to the tune of $35,000, or $595 per household, The situation has caused anger to erupt in the once-peaceful East Lake community of 59 single-family homes. 'When we all got the letter that showed why this assessment was necessary, people really reacted,' resident Dorothy King said. What has residents at odds is the rationale. The board is raising the money to pay its legal fees in a long legal battle with one resident: John Siamas. As with so many battles, it started over something seemingly small. It all began in 2020 when Siamas installed what he describes as a small "plastic, snap-together shed" in his backyard. The HOA board said the structure violates a rule prohibiting outbuildings in Stonebriar, and is suing Siamas over the matter, demanding he take it down. 'He put up a shed and the covenants indicated no sheds — and the board nicely asked him to remove it. He said no,' resident John Papa said. 'One thing after another, now we've got a lawsuit on our hands.' Read more: No millions? No problem. With as little as $10, here's of diversified assets usually only available to major players For his part, Siamas says he told the Stonebriar Improvement Association board about his plan to install a shed, and the board never rejected it. Mind you, they didn't agree to it, either. Now Siamas has escalated an already tense situation with the board by attempting to trademark the HOA's name: Stonebriar Improvement Association, Inc. 'I think it's foolish,' Papa said. 'Why would he do it?' Many residents counter that the HOA's costly legal battles are foolish. The trademark case will cost an estimated $425 per hour over 141 hours through to November 2026. Former Stonebriar HOA president Stephen King says the trademark battle is unnecessary as the Stonebriar Improvement Association has served the community well for 33 years without having a trademarked name. Meanwhile, Siamas has filed federal complaints against HOA president Gayle Zelcs over the board's trademark challenge, saying she and the board are trying to ruin him financially and force him to 'sell his home' and move out of Stonebriar. For his part, Christensen agrees that the board and its president are causing unnecessary financial hardship in a battle he describes as 'nonsense.' He wants things to return to normal. 'It's a good family neighborhood,' he said. 'It used to be peaceful, no drama.' Living in an HOA-governed community comes with financial responsibilities that can go well beyond monthly dues. Special assessments for out-of-budget anomalies like legal fees, structural repairs or emergencies can cost homeowners thousands of dollars, often with little warning. Unlike traditional emergency expenses (like a car repair or medical bill), HOA assessments may be non-negotiable and time-sensitive, with tight payment deadlines and legal consequences for nonpayment. While you can't avoid them altogether, there are things you can do to ensure you're prepared: Budget for the unexpected. Plan for financial risks by building a designated HOA emergency reserve in addition to your general emergency fund. Many HOAs set aside 25 to 40% of their monthly dues for reserves to avoid sudden assessments. For individual homeowners planning, that translates to $2,000 to $5,000, ideally. To estimate what you'll need, review your HOA's budget, reserve studies (which outline anticipated expenditures) and minutes to understand upcoming projects and potential liabilities. If you see any red flags — lawsuits, aging buildings, vague expense reports — increase your reserve savings accordingly. Review governing documents early. If you're in the market for a condominium, understand the rules for special assessments before buying. For example, Florida law requires at least 14 days' notice before forming a special assessment meeting. Push for transparency. Attend meetings, demand clear breakdowns of fees and question exorbitant or unusual costs — like $82,000 in trademark legal expenses. Build community alliances. Get to know your neighbors and understand their concerns and questions. When you're in a unified front, it's easier to vote in new board members, renegotiate payment terms or challenge unfair assessments. Know your rights. Condominium boards can't always apply unlimited assessments without owner approval. HOAs may face similar constraints depending on the state law and bylaws they're subject to. If board actions seem suspect, seek legal counsel. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Wall Street Journal
25-06-2025
- Business
- Wall Street Journal
What Condo Owners Should Know Before a Special Assessment Hits
That beautiful Miami Beach penthouse with the fabulous ocean views comes with more than a high price tag. It also comes with the risk that the condominium association may levy a special assessment against your unit that can run into the thousands, or even hundreds of thousands, of dollars, a factor that is having a chilling effect on sales of older condominiums not only in Florida, but nationwide. According to the Community Associations Institute, an industry group, special assessments are charges levied by a condominium or other community association to pay for expenses that cannot be covered by the existing budget or cash reserves. These expenses can result from a fire or other disaster, unplanned maintenance or repairs.
CBS News
29-05-2025
- Business
- CBS News
Uncovered documents reveal decades-long structural issues as Modesto HOA pushes $4 million assessment
MODESTO — Homeowners at Walnut Orchards Condominiums in Modesto are facing a sudden $25,000 special assessment to repair structural issues with decks, stairs, and landings. But decades-old records show these problems may not be new. The Walnut Orchards Homeowners Association (HOA) claims the repairs are necessary due to age and deterioration, stating: "The property was built in 1981. There's no way we can confirm the maintenance performed since then." However, a 1996 engineering report obtained by CBS13 reveals that many of the same issues were already documented nearly 30 years ago, including rotted balconies, unsafe stair landings, and water damage. That report estimated repair costs between $2 and $6 million at the time. In 2019, the current HOA board approved a reserve study estimating most balconies had a remaining life of 25 to 30 years. That same board is now claiming that 77 out of 80 balconies need immediate replacement. Despite this shift, a 2025 budget disclosure filed in September 2024 stated no special assessment was anticipated and that reserves were sufficient to fund major repairs. Just months later, the HOA began pursuing a $3.96 million special assessment, with designs already completed and contractors reportedly selected. Monthly HOA dues have risen nearly 80 percent since 2020, from $325 to $582 per unit. But reserve fund health remains virtually unchanged, increasing from 26% in 2019 to just 26.5% in 2025. While the HOA claims 41.7% of monthly dues go to reserves, no documentation has been provided to reconcile that with stagnant reserve growth. Management company Common Interest, which oversees the property, maintains that the community has been regularly maintained. But a video filmed in April shows workers saying the roofs and gutters had never been cleaned prior to that day. One is heard saying, "By the looks of it, I don't think so." Some residents fear they could lose their homes if the assessment proceeds. Ballots determining whether the community will take out a loan to pay the assessment are scheduled to be opened on May 28. CBS13 has reached out to Common Interest and HOA board representatives multiple times since March but has received no comment.
Yahoo
25-05-2025
- Business
- Yahoo
‘Why so much?': Florida condo owners fear losing their homes after being handed shocking $3.5M assessment
Like many condo owners in Florida, residents at the Heron Condominiums in West Kendall were expecting to receive a special assessment of some kind. The mandatory 40-year recertification inspection is the result of new regulations for condominiums in the state following the deadly 2021 condo collapse in Surfside, Florida. But when their special assessment came back for $3.48 million, the residents were aghast. While the aging condo building was likely to need repairs of some kind, the colossal price tag has left many worried about potentially losing their homes. "They're not against the special assessment," said Mayra Rodriguez, a resident speaking on behalf of several homeowners in an interview with CBS News Miami. "They're just saying, why so much?" Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Those who own condos know that some of the costs and maintenance responsibilities are outside the residents' control. For example, this condo needs roof repairs, building repairs, waterproofing and other structural work. And, until these are completed, the buildings cannot be recertified and must bare code violation signs throughout the property. These repair costs are covered through the assessment, which is divided between the number of units a building has so that each unit covers a portion of that total bill. In this case, the $3.48 million assessment is spread across approximately 250 units. Residents at Heron have a choice between two different payment options: a 10-year bank loan amounting to roughly $154 per unit per month or a self-funded payment of over $13,200, paid either as a lump sum or divided into four quarterly payments of roughly $3,300, starting in June. In order for the condo board to move forward with the bank loan payment option, at least 66% of the condo owners must approve that action. With the vote yet to happen, residents are worried about being able to cover the cost on their own. 'That's $3,300 every three months," Rodriguez explained. "Most people here just can't afford that." Beyond the consternation about the upcoming assessment, residents are frustrated about the lack of communication and transparency from the board. The owners at this condo complex already pay $260 per month in dues. But they aren't clear on how those funds have been used. "Where is all the money we've been paying for?" asked Jose Redondo, an owner in the complex. Read more: This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Earlier this month, Governor Ron DeSantis signed a bill aiming to bring immediate financial relief to condo owners. The bill allows condo associations to tap into lines of credit or loans for their reserves and allows for an extra year to make repairs following a structural inspection. While this bill may offer some financial relief for condo owners in the short term, it doesn't entirely protect their budget or longer-term financial wellbeing. The ability to tap into loans likely means many condo owners will face an ongoing monthly payment (with interest) or higher condo dues. Similarly, not all residents have the luxury to wait for the bill to come into effect in July (Heron residents for example are expected to start paying their portions of the assessment in June). So while Florida's post-Surfside condo regulations were made with safety in mind, the new requirements have also meant greater financial strain for those living on a fixed income. Some residents of the Heron complex are seniors living on such an income. While their property values might be high, these lower-income residents may feel 'house rich but cash poor.' Depending on the situation, some residents might also not qualify for new loans to cover their assessment costs. If they wanted to leave the complex, they might struggle to find a comparable housing option in the area. With that, many condo owners might feel compelled to sell below market value, downsize to a smaller place, relocate to a more affordable city, or switch to renting for the foreseeable future. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
