HOA Approval of $3.5 Million Assessment Against Resident's Wishes

Hello fellow Coloradans,

I am a resident of Denver and own a condo located in Denver Proper, within the Uptown district. I live in a highrise of 21 floors and 150 units ranging from 667 sqft up to 1500+ sqft. Our building is full of amenities including a gym, large off-leash dog park, pool (closed since winter 2022) hot tub/spa (closed since winter of 2022), snow removal, and other smaller-scale amenities. I have been a resident of the building since 2017, where I was once on the board of directors, chair for the Events and Community Engagement Committee, communications manager, and consistent volunteer for the building. November, 2023 we voted in a new board, where only 3 seats were open and only 3 individuals ran, making the "vote" unnecessary.

December 2023 the board began to mention a potential assessment to happen for the community after approving a 30% monthly increase of HOA dues (raised to $660 up to $1400 per month per unit.) A board meeting was held on January 25th, 2024 where the board motioned and approved a vote to now proceed with a 3.5 Million dollar assessment to the residents. The assessment is around $28 per sqft, with the lowest/smallest unit being assessed at around $19,000 due in two installments. The first 50% is due April 1st, 2024, and the second 50% is due April 1st, 2025.

The issue is not that the building needs an assessment and repair, the issue is that the board is not working in good faith with the residents by voting and approving an assessment without addressing the following.

1. Lack of Comprehensive Information: The Board has not provided adequate information regarding the allocation and utilization of the assessment funds. Detailed line items, along with their associated costs, have not been transparently shared with the unit owners.
2. Financial Management and Accountability Concerns: The absence of detailed financial plans for the proposed assessment raises questions about the Board’s financial management and accountability.
3. Financial Impact on Unit Owners: The magnitude of the proposed assessment, which is about 5% of the home values, poses a significant financial burden. Many unit owners are apprehensive about this assessment, particularly given the lack of detailed justification and understanding of its benefits.
4. Lack of Financing Options: There has been no provision of financing options for homeowners regarding this assessment. It is essential that such options should have been devised and presented before the mention of the assessment, to ensure that all homeowners can meet their obligations without undue hardship.
5. Request for In-Depth Discussions and Audit: The undersigned proposes that the Board postpone the vote on the assessment and instead engage in more detailed discussions with the unit owners. Additionally, there is a strong request for an independent financial audit of the association’s current finances and the specifics of the proposed assessment to ensure transparency and proper financial stewardship.
6. Concern Regarding the 2023 Approved Budget: It is noted that the 2023 approved budget does not reflect this special assessment. The undersigned questions the validity of imposing an assessment that was not included in the approved financial plan for the year, which raises further concerns about the governance process.

In a David and Goliath practice, I have voiced openly my concerns to the board along with a request for a veto of the assessment vote. I will be holding a resident's Townsquare in a week to further address the issue of the assessment and the current board. I am looking for further support as I am not sure where else to turn as we venture down this rocky road and am hoping that the HOA task force has resources available to us to help voice our concerns and have our needs met as we feel the board is working through self-interest verses the general interest of the community.

-Crystal