A special assessment is a charge imposed by an HOA on its members for a specific purpose, such as capital improvements or repairs and maintenance. Special assessments are typically levied in addition to the regular monthly or annual assessment. Special assessments are imposed to finance certain improvements or services that will directly benefit the property owners who are being assessed.
Some benefits of special assessments include providing a dedicated funding source for specific projects, improving the appearance of an area, and increasing property values.
When a Special Assessment is Impossible: Condo Terminations
A condo association may vote to terminate a condo in a few different scenarios, such as if the property is not being well-maintained or if there is considerable damage or repairs that need to be made.
If a special assessment is paid, then the condominium association will have the money to pay for the repairs to the building that are needed. Of course, if the condo association has the money to pay for the repairs, then the repairs will be made, and the condo association will continue on. The problem with this option is that it will likely cost the condo owners money.
If the damage is caused by an event like a hurricane and the association has the right insurance coverage, the repair bill for the damage should not incur a special assessment. But if there was a need to catch up on deferred maintenance, the money to pay for the repairs would likely fall to the owners of the condo association.
For example, if the special assessment is $1,000,000, and there are 100 condo owners, each condo owner will have to pay $10,000. If the condo owners cannot pay the special assessment, then the repairs will not be made, and the condo association will have to look at other options. Sometimes this can be to get a loan to pay for the repairs, but there are times when banks are recalcitrant to offer a loan. In those instances, we have seen times when a reduced special assessment plus a smaller loan amount is approved, but there are times when that will not work either. On those occasions, a Condo Termination is worth considering.
All that being said, a special assessment may be a better option than a condo termination if the association is in good financial standing and the owners are willing to pay for necessary repairs and improvements.
If you have any questions about special assessements or just want to look at all the options on the table, please don’t hesitate to contact me.
We pride ourselves of our level of commitment to our clients. We love what we do, and we do it with utmost care and professionalism.
What are the legalities for a special assessment. We had a special assessment last year of over 61,000. We were never told where this money was going. Now they want another $81,000. From what I read this is supposed to be published on our bulletin board. It has not. We are not told what the money is going for and I read that the condo owners are supposed to vote on this nothing was told to us please advise what we should do thank you
My condo has a special assessment so I have to pay it before I sell it ? Or can the buyer assume it?
Un board con 3 puestos cubiertos puede crear 2 cargos mas y llenarlos en cualquier momento o tiene que esperar hasta las elecciones
I purchased a condo in Miami Beach. On the FBAR Condo Rider the seller marked that he was unaware of any Special Assessment discussed in previous 12 months. We found out 3 weeks before our purchase contract effective date that the Assoc. voted down a Special Assessment. The sellers agent was both the listing agent and the property manager. She disclosed there were not special assessments. And the Estoppel did not indicate that there was a pending special assessment. Can we sue the agent and the owner? The assessment is now estimated at $90,000?
Is there an instance that a board of directors of a Master Property Owner Association, due to inadequate budgeting in the middle of the year, use a budget shortfall instead of a special assessment to the membership to cover the budget?
Can the board of directors raise your HOA fees without notifying you they did not send us a letter or posting it on the board. We didn’t vote on it it came out of the blue. can they raised the HOA without a vote.