An important function of a homeowners associations board of directors is to impose assessments on the association members in order to generate funds that are required for the maintenance, repair, and replacement of common areas and the conducting of association business. The power to impose necessary assessments is provided for in state statutes and the associations governing documents and the types of assessments that are commonly imposed by an association are typically referred to as either regular or special. Regular assessments are a fixed amount that is generally paid monthly or quarterly by the associations members to cover the associations budgeted expenses. Special assessments are imposed only when additional funds are needed to cover various expenses that are not provided for in the associations budget or when there are insufficient funds available for necessary expenses. An important third type of assessment that is frequently not specifically provided for in state statutes or an associations governing documents is a reimbursement assessment that can be imposed upon individual members.
A reimbursement assessment is a special assessment that is imposed by an associations board of directors against individual members for the purpose of reimbursing the association for expenses that it incurred in connection with actions that the association was required to take as a result of conduct on the part of the association member or his or her tenants and guests. The types of conduct that typically give rise to the imposition of special assessments against individual members are: (i) damage caused to association common area and/or facilities by the member or the members tenant or guest; and (ii) failure to comply with the associations governing documents.
Procedurally, before an associations directors take action to impose a special reimbursement assessment lien against an individual member, the member must be provided with written notice of the intended action and an opportunity to be heard and to present evidence that supports the members position. To satisfy this requirement, the state statutes and/or association governing documents should contain specific provisions regarding providing the member with notice of a hearing at which the imposition of the assessment against the member will be considered and information that details the expenses the association is seeking to recover from the member along with supporting documentation of those expenses. Like regular and other special assessments that are imposed on all members, the associations CC&Rs should empower the association, acting through its directors, to impose late fees and interest, and to record liens against the individual members separate interest property and to foreclose on such liens when the reimbursement assessments are not paid by the member.
The following is an example of a provision that has been drafted for inclusion in an associations CC&Rs to provide for the imposition of special reimbursement assessments against individual members:

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