What is a special assessment?

What is a special assessment?

• A. A recurring monthly charge.
• B. A one-time assessment to cover a major expense not included in the annual budget.
• C. A penalty for late payment.
• D. A reduction in dues.

Answer: (B)

A special assessment is a one-time charge levied by a community association to fund a major expense that wasn’t included in the regular annual budget. It’s used for significant capital needs or unexpected costs, such as roof replacement, extensive repairs, or major system upgrades, when the reserve funds aren’t enough. The amount is allocated to members according to the association’s formula (often based on unit size or ownership) and can be paid all at once or in installments, depending on the governing documents and board policy. It isn’t a recurring monthly fee, a late-payment penalty, or a reduction in dues.

A special assessment is a one-time charge levied by a community association to fund a major expense that wasn’t included in the regular annual budget. It’s used for significant capital needs or unexpected costs, such as roof replacement, extensive repairs, or major system upgrades, when the reserve funds aren’t enough. The amount is allocated to members according to the association’s formula (often based on unit size or ownership) and can be paid all at once or in installments, depending on the governing documents and board policy. It isn’t a recurring monthly fee, a late-payment penalty, or a reduction in dues.