Special Assessment

Purpose

This policy outlines the procedures and guidelines for the imposition, collection, and administration of special assessments by the [Condominium Association Name] (the "Association"). Special assessments are a financial tool intended to address unforeseen expenses or major projects that exceed the funds available in the Association's operating and reserve budgets.

Definitions

  • Special Assessment: A one-time or temporary fee charged to unit owners in addition to regular monthly assessments to cover extraordinary expenses or fund major projects.

  • Operating Budget: The annual budget covering the day-to-day expenses of running the condominium complex.

  • Reserve Fund: A fund set aside for future major repairs, replacements, and capital improvements.

  • Reserve Study: A professional assessment that evaluates the physical condition and remaining useful life of common elements, estimating future repair and replacement costs.

Authority

The authority to levy special assessments is granted to the Association's Board of Directors in accordance with the Condominium Act of [Province/State] and the Association's Bylaws.

Conditions for Imposing a Special Assessment

A special assessment may be levied when:

  1. Insufficient Funds: The reserve fund or operating budget lacks sufficient funds to cover a necessary expense or project.

  2. Unforeseen Expenses: An unexpected event (e.g., natural disaster, major system failure) necessitates immediate repairs or replacements.

  3. Major Projects: A major project not budgeted for in the current fiscal year is deemed necessary for the preservation, safety, or enhancement of the condominium property.

Procedure for Imposing a Special Assessment

  1. Assessment Proposal: The Board of Directors will prepare a written proposal detailing the purpose, amount, and payment schedule of the special assessment.

  2. Notice to Owners: Written notice of the proposed special assessment will be sent to all unit owners at least [Number] days in advance of a meeting where it will be discussed.

  3. Owner Meeting: The Board will hold a meeting to discuss the special assessment proposal and answer owner questions.

  4. Vote: The Board will vote on the special assessment. A majority vote is typically required for approval (check your bylaws for specific requirements).

  5. Implementation: If approved, the special assessment will be implemented according to the payment schedule outlined in the proposal.

Collection of Special Assessments

Special assessments will be collected in accordance with the Condominium Act and the Association's Bylaws. Delinquent payments will be subject to late fees and potential legal action as outlined in the bylaws.

Use of Special Assessment Funds

Special assessment funds will be used solely for the purpose stated in the assessment proposal. Any unused funds may be returned to the reserve fund or applied to future assessments.

Review and Amendment

This policy will be reviewed annually and amended as necessary by the Board of Directors.

Disclaimer

This policy is intended as a general guideline. Owners are advised to consult the Condominium Act, the Association's Bylaws, and their legal counsel for specific legal obligations and rights regarding special assessments.