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).