What is Special Assessment?
A special assessment is an extra charge beyond regular dues or property taxes, levied to pay for a specific improvement or unexpected cost. Homeowners associations use them for major repairs a reserve fund cannot cover, and local governments use them to fund things like new sidewalks or sewers that benefit certain properties. It is usually a one-time or limited-term charge on top of normal payments.
Example: After storm damage exceeds the reserve fund, an HOA levies a $4,000 special assessment per unit to repair the roofs, payable over twelve months.