REFUNDING ASSESSMENTS DUE TO CLOSED FACILITIES

IS THE ASSOCIATION REQUIRED TO REFUND ASSESSMENTS BECAUSE OF CLOSED FACILITIES?

Many associations have temporarily closed common facilities in response to COVID-19 and social distancing guidelines. Thises facilities include such as clubhouses, laundry rooms, fitness rooms, and hot tubs. Many are wondering whether or how pools will be able to open later this month.  As the weather gets nicer and quarantine fatigue sets in, we are seeing more demands to open up facilities and to refund assessments if facilities have been closed or access reduced.

Association Authority

Associations generally have the authority to manage, control and operate the common elements. This includes the authority to temporarily close facilities when appropriate.   Many documents specify that non-use of common facilities does not entitle an owner to an offset in assessments.  The Covid-19 pandemic does not alter the Board’s fiduciary responsibility to meet the Association’s financial obligations and does not alter an owner’s obligation to pay the assessments levied according to the association’s budget.  Associations should be encouraged to work with those owners who have lost their jobs due to Covid-19 and have problems paying assessments right now.  However, an association most likely does not need to refund or reduce assessments because of limited access to facilities.  As always, make sure you review your association’s documents and check with the association’s attorney for specific advice.