Is Your Community Association Getting the Municipal Reimbursements It Deserves Now That Your Tax Abatement is Over?

September 21st, 2019 | Community Association Law Blog

By Mary Wynn Seiter, Esq.

Are you in a community association that is 20 or more years old and initially had a property tax abatement in place with the municipality? Your association may be owed money by that municipality, if you are not already getting municipal services or reimbursement for them!

While municipalities are required either to provide certain services, including trash collection and snow removal, or reimburse the community associations the municipalities’ cost to provide those services, these obligations under the Municipal Services Act are waived while a community is subject to any kind of tax abatement arrangement.

However, once that abatement has expired – and that can be anywhere from 10 to 30 years, depending on the specific terms and conditions of the financial agreement negotiated between the original developer and the municipality – the municipality is on the hook to either reimburse for, or provide, these services, which include snow removal, trash and recycling removal, and street lighting. Generally, the municipality cannot be counted on to initiate this – your association needs to ask for a municipal services agreement with the municipality. And if you wait too long, your association will lose any ability to obtain reimbursements for past missed years…. those funds will be gone!

Connect with our law firm to learn how best to pursue your municipality for the full and appropriate value of your community association’s municipal services reimbursement. We can help make sure that your association gets what it deserves!