Legal Question in Real Estate Law in Maryland
Special Assessments
Can a homeowners association levy a special assessment on its homeowners to hire consultants and/or legal representation to "protect the interests of its residents"?
It is my understanding that a special assessment is a specific tax levied on private property to meet the cost of public improvements that enhance the value of the property (at least that is Websters definition).
Could consultants and/or legal representation enhance the value of property?
3 Answers from Attorneys
special assessments
The special assessment would depend upon the documentation. However, the charges listed in your questions seem reasonable and should be upheld.
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Special Assessments
The powers of the Homeowners Association are usually found in the Covenants, Conditions & Restrictions which are usually recorded as part of the subdivision. You should read those to determine what powers your Homeowners Association has. It may be the case that they are using the term "Special Assesment" in the generic sense or as it is defined in the CC&R's. It is not unusual for Homeowner's Associations to have a power to levy fees and charges on the owners, but those powers are governed and limited by the CC&R's. I don't know the particular facts in your case, but in many instances consultants and atorneys can conceivably enhance value by adding improvements or fighting land use or zoning changes in the adjacent propoerties. You should consult an attorney in your state to further review the propriety of any particular charges.
HOA special assessments
It depends on the HOA documents. The Md. Codeallows such matters to be within the scope ofassessments charged, provided the docs allowthem.
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