Assessments and Liens
A Pennsylvania Superior Court recently held, in Treasure Lake Property Owners Association, Inc. v. Meyer, 2003 PA Super 329, 832 A.2d 477 (2003), that a decrease in property value is not a basis to offset assessments. In Treasure Lake, a parcel of property, in the association, became valueless due to market conditions. The owner then failed to pay assessments on the property claiming that he should not have to pay on valueless property. The court held the association still had the right to levy assessments based on a contract for deed that included a covenant to pay assessments. The court further held that the assessment did not have to be based on value of property.
The Georgia Court of Appeals held, in Slaton v. Village Oaks Condominiums, Inc., 259 Ga. App. 186 576 S.E.2d 587 (2003), an association's failure to make repairs to a unit does not exempt the owner from paying assessments. In Slaton, when a unit owner alleged that his association failed to make timely repairs to his unit, he ceased paying his assessment. The court held the governing documents for the association are controlling as to grounds for non-payment of assessments, and failure to make timely repairs was not a legitimate ground for non-payment. The owner was liable for all unpaid assessments and late charges.
The Connecticut Court of Appeals held in South End Plaza Association, Inc. v. Johnson, 767 A.2d 1267 (Conn. App. 2001) that the invalidation of an association's budget due to procedural error does not relieve members of their obligation to pay regular assessments because the previous properly adopted budget will be deemed still in force. In Johnson, an association failed to give proper notice for the meeting to adopt the budget and subsequently, the budget adopted during the meeting was not valid. Certain members refused to pay assessments claiming no valid budget. The court held that because the adopted budget was invalid, the previous budget was still in force and the members would be required to pay dues under the previous budget.
