Special assessment
A special assessment is a one-time charge, on top of regular dues, that an association levies on all owners to pay for a specific cost the operating budget and reserve fund cannot cover — a roof replacement that came early, storm damage above the insurance deductible, a legal judgment, or a reserve shortfall that has finally come due.
Who can approve one varies. Many governing documents and state statutes let the board levy a special assessment up to a cap, often a percentage of the annual budget, and require an owner vote above it. The cost is usually split by the same formula as regular assessments, either equally or by each unit's percentage interest, and boards often offer a payment plan.
A well-funded reserve is the usual way to avoid needing one.
Read more
- Running a special assessment without a riot
- How to build an HOA budget that survives the year
- Free special assessment calculator