Mudslide Assessment

Source: Adrian J. Adams Esq. 

QUESTION: About 10 homes in our community were red-tagged by the city due to severe damage from mud and rock sliding off a mountain slope. I asked our board to waive monthly assessments for those homes until they could be occupied again. I was told “We do not have the authority to do that.” Are they correct?

ANSWER: Waiving assessments is analogous to California waiving property taxes. If you can get the state to waive taxes you might have an argument for the board waiving assessments.

Deficit. Forgoing assessments is a friendly gesture but it would create a deficit in the budget that would have to be covered by other members via a special assessment.

Negligence. Fortunately, there is no need to drop assessments since the ten homeowners should have insurance to cover their loss. If they failed to carry insurance, you would be asking your neighbors to involuntarily pay for someone else’s negligence, i.e., their failure to insure.

RECOMMENDATION: If you want to waive assessments, I recommend putting it to a vote of the membership. If the membership approves the waiver, the board would not be acting outside their authority.