How To Write A HOA Assessment Notice 

A Notice of assessment comes from the HOA President and is sent to the homeowners.  When sending a notice to the homeowners, you’ll want to be sure to include certain key pieces of information. Following a letter template can help ensure you don’t miss any important details.

The HOA’s governing documents set forth the procedures that the HOA must follow to levy special assessments. Homeowners may be required to vote on the issue before the board can go ahead, or the board may only need to provide the community with adequate notice. There may also be limits on the conditions under which a special assessment is allowed. Many states have adopted laws restricting an HOA’s ability to levy special assessments.Make sure to check with your state laws and consult legal counsel when considering notifying homeowners of an assessment.

Once it has been determined that an assessment will be necessary and has been approved, you will need to notify the homeowners in writing with all of the pertinent information.

Information That Should Be Included

While there is not a specific format for what is required to be included in an assessment letter, there is certain key information that you should include to make it easier for the homeowner to understand why the assessment was necessary.

  • The reason(s) for the special assessment- be honest and upfront about why the association must levy a special assessment instead of using money from the reserve fund
  • Any alternatives that were considered – was there a discussion about taking out a loan from a bank, postponing repairs, or selling common assets?
  • The total cost of the assessment
  • How much each owner must pay
  • If payments are to be made all at once, or if monthly payments will be collected
  • Deadlines for payments
  • If there are payment plan options available

HOAs don’t enjoy levying special assessments, but at times, it’s the only option given the unforeseen circumstances. Do your best to provide homeowners with as much information as you possibly can, explain why the board has elected to levy an assessment, and help those who may struggle with the unexpected expense. While the community won’t be happy about the decision, with proper communication, most people will understand why it had to be made. 

 

Assessment Template 

 

[Your Name]

[Current Street Address and apartment number if applicable]

[City/State/Zip]

 

[Phone Number] Your Number 

Email: [Your Email Address]

[Today’s Date]

[Owner’s Name]

[Street Address and apartment number if applicable]

[City/State/Zip]

Dear [Owner’s Name],

We strive to provide the best services for our homeowners and people living in [insert community name]  However, [insert reason for increase] has proven to be costly. We unfortunately will have to cover the cost by imposing an assessment on every homeowner.  The assessment cost will be [insert amount] and applies to all homeowners.  The effective date is [date] and needs to be paid in full no later than [date].  If you are unable to pay in full please contact the board so we may try and work out a payment plan if allowed by the charter and state laws.

We understand no one wants to pay more money, please know we are committed to maintaining our community at the highest of standards to assure that all property values are preserved in the future. 

Your cooperation and commitment to maintaining our community is appreciated. 

Sincerely,

[Your Signature]

[Your Full Name]

[HOA Title]

 

Assessment Sample Letter 

Sam Jones

5555 Pigeon Point Place

Charleston, SC 29407

 

Phone: 555-455-3555 

Email: [email protected]

May 27th, 2022

Courtney Cox

1842 Piper Road

Charleston, SC 29407

Dear Ms. Cox,

We strive to provide the best services for our homeowners and people living in the SJL Community. However, the extensive damage that was done to our privately owned roads by the hurricane has proven to be costly. We unfortunately will have to cover the cost by imposing an assessment on every homeowner.  The assessment cost will be $500.00 and applies to all homeowners.  The effective date is May 27th, 2022 and needs to be paid in full no later than June 30th, 2022.  If you are unable to pay in full please contact the board so we may try and work out a payment plan if allowed by the charter and state laws.

We understand no one wants to pay more money, please know we are committed to maintaining our community at the highest of standards to assure that all property values are preserved in the future. 

Your cooperation and commitment to maintaining our community is appreciated. 

Sincerely,

[Your Signature]

[Your Full Name]

[HOA Title]