Board governance glossary
Definition
What is Special assessment?
A special assessment is a charge imposed on owners in addition to regular common charges or dues to fund a specific expense or address a funding shortfall.
What it means in practice
Associations commonly use special assessments for major repairs, capital improvements, insurance shortfalls, emergency work, or reserve replenishment. The amount may be allocated according to ownership interests or another formula required by the governing documents.
Authority, notice, voting, payment-plan, and disclosure rules vary. Boards should establish the project need and budget, evaluate alternatives, follow the required approval process, and communicate the purpose and payment schedule clearly.
Key points for boards
- Confirm the board’s authority and any owner-vote requirement.
- Document the expense, allocation method, and alternatives considered.
- Provide required notice and a clear collection schedule.
- Track assessment proceeds against the approved purpose.