Question:
Does Maine HOA law include a ceiling as to how much an HOA can raise annual monthly dues?
#2. Is there any ceiling for special assessments beyond the 1 month HOA dues the BOD can do without a vote? ie The BOD needs more funds than 1 month HOA dues from each owner.?
# 3 Is there a rule regarding how many days the owners have to review the budget. I heard the budget has to be given to the owners 30D before an Association mtng?
– Fran
Answer:
Hi Fran,
Maine currently does not have a Homeowners Association Act. However, it does have a Condominium Act, which applies to condominiums.
According to Section 1603-103 of this Act:
“The executive board may make a special assessment, subject to the following ratification requirements.
(1) A special assessment must be ratified by unit owners in accordance with subsection (c), except that, if payment of any portion of the proposed special assessment is due after the end of the association’s current budget year, ratification requires approval of a majority in interest of all unit owners.
(2) If the amount of the special assessment does not exceed 2 months’ common charges and the board determines that the assessment is necessary to meet an emergency, the board may make the special assessment immediately in accordance with the terms of the board’s vote, without ratification by unit owners.”
It makes no mention of limitations on monthly dues increases and budget review requirements.
However, it is best to check your governing documents for guidance concerning your questions. Your CC&Rs and bylaws should be able to shed some light on limitations on increases, special assessment ceilings, and budget review requirements.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
