Definition
Unplanned fees charged to HOA members for unexpected major repairs or capital projects not covered by budget reserves. They indicate inadequate reserves or poor planning.
Where you’ll meet it
Is this association healthy, or a special assessment waiting to happen?
See it in Buying a condo or townhome · Step 2About this term
Special assessments can be substantial ($1,000-$10,000+) and occur suddenly for roof replacement, structural repairs, or major system failures. They indicate inadequate reserves or poor planning. Communities with frequent special assessments signal poor management. Assessments are mandatory and can trigger liens if unpaid.
Pro Tip
Ask about recent special assessments. Frequent assessments signal poor management or underfunded reserves.
Example
An aging roof requiring replacement costs $200,000; an HOA with insufficient reserves charges $2,000 per unit as special assessment