Special Assessment

A special assessment is a surprise bill from your HOA—often thousands of dollars—to cover unexpected costs like roof replacement, elevator repairs, or lawsuit settlements.

How It Happens:

1. HOA discovers major issue (foundation crack, asbestos, failed infrastructure)
2. Reserve fund doesn't have enough money
3. Board votes to charge homeowners directly
4. You get a bill—sometimes $5,000, $10,000, or more

Real Examples:

• Condo building needs $2M roof replacement, 200 units = $10,000 per unit assessment
• HOA loses lawsuit, $500,000 settlement = $2,000 per home assessment
• Pool renovation, $150,000 cost = $1,000 per homeowner

Warning Signs of Future Assessments:

• Low HOA reserves (under 6 months of expenses)
• Aging infrastructure (20+ year old buildings)
• Deferred maintenance ("we'll fix it later" attitude)
• Recent special assessments (poorly managed)

How to Protect Yourself:

• Review HOA financials before buying (reserve fund balance, recent assessments)
• Ask about known upcoming repairs
• Budget 0.5-1% of home value annually for potential assessments
• Attend HOA meetings to vote against bad decisions

The Bottom Line: Special assessments are one of the hidden costs of HOA living. A well-managed HOA with healthy reserves rarely needs them. A poorly run one can hit you with surprise bills yearly.