HOA Special Assessment: What It Is And How To Handle It
Author:
Sidney RichardsonMay 31, 2024
•6-minute read
Let’s walk through the key facts you need to know about HOA special assessments.
What Is An HOA Special Assessment?
HOA special assessments are extra, “unusual” fees that your HOA board may charge you under certain conditions. The board usually levies these costs only in emergencies, such as unexpected large-scale damages.
Special assessments can be charged in most neighborhoods under HOA restrictive covenants. You’re subject to a special assessment if you’re a homeowner living in an HOA-governed community – not just if you’re a condominium owner.
Other HOA Expenses
HOA special assessments are usually only charged in the case of unforeseen emergencies where the community needs major repairs. They’re separate from typical HOA costs such as regular dues and planned assessments. Unlike other costs, special assessments usually fall outside the HOA’s yearly budget – potentially by a lot.
If you’re part of an HOA community, you’ll likely be required to pay for special assessments if they arise, even though they weren’t planned.
Special Assessment Tax
“Special assessment” can also refer to a term associated with property taxes, which aren’t to be confused with HOA special assessments. A special tax assessment is levied on taxpayers to fund a local project – usually road construction or maintenance – unrelated to HOAs.
This is similar to how HOA special assessments are conducted, but remember: HOA special assessments and special tax assessments aren’t the same.