The HOA Board's Guide to Special Assessment District Road Improvements

← How Special Assessment Districts work in Michigan

Independence Township Edition

Independence Township has approved a Special Assessment District (SAD) program that lets qualifying homeowners associations fund subdivision road improvements without a large upfront cost to the association. R&R Asphalt guides your board through the entire process, from first budget to final county approval.

Schedule a Complimentary Subdivision Pavement Consultation Call (248) 529-6005

What Is a Special Assessment District?

A Special Assessment District (SAD) is a funding mechanism that lets homeowners finance road improvements through assessments on their property. In Independence Township, the township pays for the work upfront, and homeowners repay the cost over time, typically up to 10 years. There is no government funding mechanism for subdivision road improvements other than a SAD or paying as you go.

"Independence Township is committed to helping our community through funding for road work that would otherwise cost our taxpayers significantly more money to improve their roads and property values."
— Independence Township

Three Ways to Fund Your Road Improvement

SAD (Special Assessment District). Independence Township funds the project upfront, homeowners repay through assessments. Most common option.
Oakland County SAD Program. A separate county-level option. More info: oakgov.com/sad.
Pay-as-you-go. Your association funds the project with existing reserves or a special assessment.

Why Independence Township's SAD program works in your favor: the township pays upfront so there's no large out-of-pocket cost, financing through the township typically carries lower interest rates than a private loan, repayment terms run up to 10 years, and it's a proven process with a track record of successful projects.

The Process, Step by Step

Budget (no cost). A visual inspection and budget estimate from a trusted contractor.
Petition of Interest. R&R works with the township and circulates a petition among residents to keep the project moving forward, 51% support needed.
Engineering. Core samples and real data on the exact scope, something a visual inspection alone can't provide.
Refine Estimate. The budget gets updated based on real engineering data.
Second Petition. A second petition with the refined cost and specific per-lot numbers, 61% support needed.
Two Public Hearings. The township hears resident feedback.
Township Board Approval of SAD funding.
County Permits. Road commission and other required permits.
Ongoing Communication. Schedules, notices, and updates throughout.
Construction. The work happens.
Project Close-Out. Testing data and specification review.
Final County Approval.

"The road may seem complicated. With the right guide, it becomes a proven process."

Independence Township takes SAD applications in Spring and Fall. Getting your application in early matters, don't miss the window.

Why HOA Boards Choose R&R

Experience: Family owned and operated. 40+ years of pavement expertise. A proven start-to-finish process.
Planning: Special Assessment District specialists. Engineering before asphalt. We do the meeting-prep homework for your board. Communication plans that keep residents informed.
Construction: MDOT prequalified. Oakland County Road Commission qualified. Modern equipment, experienced operators. Traffic management and resident safety as priorities throughout.
After construction: Annual inspections and reporting. Maintenance planning to protect the investment. A long-term partnership for the life of your roads.

Kevin Shell, Vice President of Sales, R&R Asphalt

Meet Your Guide: Kevin Shell

Vice President of Sales, R&R Asphalt. More than 31 years helping homeowner associations, condominiums, communities, engineers, and municipalities plan, communicate, and execute pavement improvement projects throughout Southeast Michigan.

University of Michigan graduate
31+ years of pavement consulting experience
Managed condominium association properties for 9 years
Instructor: BOMA Metropolitan Detroit, Community Associations Institute (CAI) Michigan, United Condominium Owners of Michigan (UCOM)
Co-presenter with Jason Stoops, G2 Consulting Group

Frequently Asked Questions

How long do we have to repay a Special Assessment District cost?

Up to 10 years, repaid through your property tax bill rather than a lump sum from the association.

Do we need money in reserves to start this process?

No. The first step, a budget estimate from a visual inspection, has no cost. Engineering, the next step, does have a cost that scales with project size.

How much resident support do we need?

Two petitions are required as the project moves forward: an initial petition of interest requiring 51% resident support, and a second petition once real engineering data and per-lot costs are known, requiring 61% support.

When can we apply?

Independence Township takes SAD applications in Spring and Fall.

What if our association would rather not use the township's SAD program?

Two other paths exist: the Oakland County SAD program, or pay-as-you-go funding from your association's own reserves or a special assessment.

Schedule a Complimentary Subdivision Pavement Consultation

Tell us about your association and we'll follow up to schedule your free visual inspection and budget estimate.