Does Ohio Law Require An HOA Board to Seek Member Approval For An Assessment Increase?

 

The Act states that an HOA board “may not increase any assessment for common expenses when the declaration limits the amount of such assessments unless the owners amend the declaration…” O.R.C. §5312.10(C)(2).

An amendment to the declaration requires a vote of approval from 75% of the association members. O.R.C. §5312.05(A).

If the declaration does not limit assessments or otherwise set forth the manner in which assessments are calculated, then the statutory means of determining assessments will apply. 

Pursuant to O.R.C. §5312.06(A)(1), the board shall “annually adopt and amend an estimated budget for revenues and expenditures…[and] collect assessments for common expenses from owners…” If the declaration does not establish a means of allocating assessments, then “the common expense liability shall be allocated equally among all the lots.”  

Importantly, though, a board "may not charge assessments for common expenses unless the declaration provides for or contemplates the charging of such assessments." O.R.C. §5312.10(C).

Related Content

Featured
Weathering The Storm: Coronavirus And Its Financial Impact on Homeowners

One way or another, future historians will consider the Coronavirus Pandemic among the most noteworthy events of the early 21st Century. The full economic impact on homeowners and their families cannot yet be precisely predicted, but it is likely to be immense. Taking the necessary precautions to avoid exposure to the virus and preparing for the financial ramifications will require prudence, careful planning, and maybe even a little creative thinking. Homeowners can't completely avoid the fallout from Coronavirus, but there are a few measures that could hopefully soften the blow.

Reserve Funds For Homeowners' Associations

What happens when an essential common element is unforeseeably damaged—resulting in significant repair or replacement costs—and there’s no money in the budget or insurance to cover the loss?  Rather than get caught scrambling for cash when an unexpected contingency or major maintenance need arises, many communities maintain “reserve funds,” a sort of back-up savings slated for emergencies, long-term upkeep costs, and irregular expenditures. Although reserve accounts are often not mandatory, an ample reserve can play a big role in protecting a community’s long-term financial health.

Understanding The Ins and Outs of HOA Fees

Homeowners’ associations typically are formed to manage any property in the community that is owned communally, as opposed to individually, such as a playground or building hallways.  Whether an HOA is made up of a condominium building, townhouses, or single-family homes, the responsibilities generally include the same type of tasks – maintain landscaping, employ property managers, maintain shared private roads or driveways, arrange trash removal, operate a swimming pool, and the like. This article will help you better understand the ins and outs of HOA fees. 

 
AssessmentsChristopher R. Moore, Esq.