FEES AND FINANCES
A special assessment is an extra one-time charge added to the owners’ common expenses fees that condo corporations may use to cover shortfalls in their yearly budgets. Corporations generally rely on special assessments to cover single events that impact their finances, such as being involved in expensive litigation.
Understanding special assessments
Condo boards can charge a special assessment through common expense fees without getting permission from owners. The governing documents of the condo corporation may have provisions regarding special assessments which the condo corporation will have to abide by.
Your condo board may need to levy a special assessment for a variety of reasons. Here are some notable examples:
How much does an owner pay?
Condo corporations will tell owners how much they must pay. An owner’s portion is calculated using the same percentage used to calculate common expenses fees. Owners must pay their portion of any special assessments. Not paying will lead to the corporation having a lien against your condo unit. The lien will cover the unpaid amount owing, all interest as well as all reasonable legal costs and expenses incurred by the condo corporation in its attempt to collect the unpaid amounts.
Avoiding special assessments
Ultimately, the best way to avoid special assessments is sound financial management of the condo corporation. The Condo Authority provides many resources that can help with financial management! See below.