What is a special assessment?
A special assessment is a one-time fee charged to owners when the condo corporation needs additional funds quickly, often for unexpected expenses or major repairs. Payment may be required as a lump sum or split into several installments.
Do I have to pay special assessment?
Yes, you do. Condo owners are collectively responsible for the maintenance of the corporation’s assets through condo fees and, if necessary, special assessments. Some owners may be able to dispute assessments charged or disclosed improperly by filing a case with the Superior Court of Justice.
Not paying a special assessment may lead to your corporation placing a lien against your unit.
The best way to avoid an assessment is to stay engaged and keep an eye on your condo’s finances by reading notices your board sends you and joining owners’ meetings. Owners should not be surprised by an assessment and should have clear understanding of why it’s necessary.
When might a condo board consider levying a special assessment?
A board might consider a special assessment when there is an urgent need for funds that cannot be met through the regular budget or reserve fund. This might be due to emergency repairs, unforeseen expenses, litigation costs or capital projects.
What are alternatives to special assessments?
Corporations can consider creating a borrowing by-law or increasing owners’ condo fees. Boards are encouraged to explore these options in consultation with the owners as both come with their own pros and cons.
How can a condo corporation avoid special assessments?
Corporations can reduce the need for a special assessment by practicing sound financial management, such as properly funding the reserve fund over the years, maintaining realistic budgets and planning for long-term expenses.
Sometimes, even best laid plans may not be enough. Corporations that are faced with the need to levy an assessment should consult with their owners on the best ways to move forward.
How should information about a special assessment be communicated to owners?
Transparency and timely updates are key. Owners should be informed about the reason for the assessment, the amount, payment options and any alternatives considered.
Many conflicts can be avoided by prioritizing clear communication with owners. Our Guide on Communication and Conflict Resolution offers practical tips and tools.