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Can a HOA charge a special assessment to cover legal fees?

Property 4 views 2 answers
My community has been hit by numerous lawsuits from a few individuals in the community. Each member of the BOD is being sued directly, multiple times. These are frivolous lawsuits but none the less they exist, and until a hearing is heard, The BOA has charged a $500 special assessment to cover the growing legal fees. The court date has been changed 4 times because these people keep filing another case and cause the date to keep being pushed further and further away. So my questions is..Can they charge the community this assessment to cover their legal fees, seeing how the majority of suits are against each individual BOD members?

Attorney Answers

2
Michael Kuldiner ·
Typically there should be insurance for BOD to protect them from law suits. However, if the association needs capital, a special assessment is the usual way to raise such capital.
0 upvotes
Leslie A. MargoliesReal Estate AttorneyBlue Bell, PA ·
As long as the issue for which the individual is being sued is for action or inaction in their capacity as a member of the Board of Directors, then assessing the fee to cover the legal cost is generally appropriate. The Homeowners Association may consult with a real estate lawyer on the issue.
0 upvotes

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