Special Assessment
A one-time or temporary charge levied on homeowners to fund unexpected expenses or large capital projects that cannot be covered by the operating budget or reserve fund. Special assessments may require member approval if they exceed a certain threshold. They can be paid as a lump sum or in installments. Examples include emergency roof repairs, litigation costs, or infrastructure upgrades.
State-Specific Notes
California: Special assessments exceeding 5% of the current fiscal year budget require member approval under Civil Code Section 5605.