In addition to HOA fees that are required when someone purchases a unit in a building with an HOA, there may also be special assessment fees that are added onto their costs. Special assessments are not always necessary but there may be times when you need to tack on these fees.
As part of the HOA fee, owners expect that the money will go towards maintaining the property, the common areas, and sometimes even go into reserves for larger projects. In many cases, the estimations made every year do cover the expected costs. However, there are circumstances that could pop up and cause a need for more money to maintain the property and make repairs. There must be some way to raise money when this happens. This is where special assessments come into the picture. A special assessment will cover a one time cost for repairs or make up for errors in the yearly calculation. It is a special charge that is usually only added to one month of fees.
Since a special assessment should not be used as a regular occurrence, it is important to know what typically falls within the expectations of a special assessment. These are just a few of the types of circumstances that could lead to a special assessment for a condo:
For more information on what a condo special assessment is and when you should use it, be sure to contact Ardent Residential today.