What is a Special Assessment?

Condos obviously generally come with recurring dues payments to the association.  If the association’s finances aren’t well managed and there isn’t enough kept in reserve to upkeep the community or its amenities, then a special assessment can be levied.  For example, let’s say the neighborhood swimming pool requires $30,000 in maintenance but there’s only $10,000 in reserves for this purpose.  Well, the association may choose to raise the $20,000 by levying a special assessment on each unit of a pro-rated portion of the $20,000.  For instance, if there were 100 units in the neighborhood, then a special assessment of an additional $200 per unit could be leveled to raise the needed $20,000.  Other times, condo associations will chose to raise the dues by a certain amount to cover the need instead of a special assessment.  But the point is, that the way the neighborhood and its finances are managed are extremely important to consider in owning a condo.