HOA special assessment.
In plain English
An HOA special assessment is a charge the homeowners association levies on top of normal dues, usually to cover a big, unexpected expense like a new roof, a failing elevator, or a lawsuit. It happens when the regular dues and the reserve fund are not enough to pay for the work. Depending on the HOA's rules, an assessment can be a few hundred dollars or many thousands, and owners generally must pay whether or not they agree. This is one reason buyers look at an HOA's reserve fund before buying; a thin reserve makes future special assessments more likely.
01Why it matters
A special assessment can land as a surprise four- or five-figure bill you did not budget for, sometimes right after you bought.
02The math, step by step
The roof on your condo building fails and costs $600,000 to replace, but the reserve fund only has $200,000. The HOA splits the $400,000 shortfall among 100 units, so each owner gets a special assessment of $4,000, due over the next year.
03What this is NOT
Regular dues are predictable, ongoing payments. A special assessment is a separate, often large one-time charge for a specific project the normal dues and reserves could not cover.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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