Search results
Special Assessments: To make up for the shortfall in the reserve fund, condo associations may levy special assessments on condo owners. A special assessment is a one-time fee that is charged in addition to regular condominium fees to cover unexpected expenses. Special assessments can vary in amount and can be a significant financial burden for ...
Aug 11, 2024 · In Ontario, the Condominium Act governs the operation of condominiums, including the financial aspects related to maintenance and unexpected repairs. A key financial management component is the special assessment, a levy that can significantly impact condo owners. This article explores condo special assessments in Ontario, covering their legal ...
Special Levy - CondoLawAlberta. Special Levy. A special levy (previously known as “special assessment”) is a type of financial contribution that the condominium board can impose (by resolution) on condominium unit owners. It may be levied as a one-time lump sum or as an extra payment, in addition to condominium contributions (fees).
- A condo board can impose a special levy in certain situations, for example to: Pay for unexpected and urgent maintenance, repair or replacement of...
- To approve a special levy, the condominium board passes a resolution, which must set out the following information: the purpose of the levy the tot...
- Each owner’s portion of a special levy is calculated based on unit factor unless the Condominium Property Regulation or bylaws say otherwise. The u...
- Sellers must disclose if there is a pending special levy that is not included in the condominium documentation. The requirement to pay the special...
- A condominium corporation’s operating budget and reserve fund are separate and distinct accounts with their own rules. For example, money from a re...
- As an owner, it is your responsibility to pay your portion of the special levy when it is due, even if you disagree with it. If you don’t pay the s...
Jan 28, 2022 · A Toronto condominium is making headlines after levying a $14 million special assessment. The condo’s 321 units were given 15 days to pay between $30,000 to $42,500. Many residents are seniors who see their units as their retirement home but the condo promised it wouldn’t enforce its liens before April…how generous.
- What’s An Assessment?
- What’s A Special Assessment?
- What Do Special Assessments Pay for?
- How Are Special Assessments calculated?
- Tips For Communicating Special Assessments
- How to Avoid Hoa Special Assessments
Assessments are fees that all owners are legally required to pay. Depending on the governing documents and procedures, they can be collected annually, quarterly, or monthly. These fees are the primary source of income for a condo corporation and are used to ensure the corporation can successfully perform the various duties and tasks for which it’s ...
Occasionally, corporations need money in excess of the funds raised by regular condo fees to pay for unexpected costs. When this happens, the board has the power to levy a one-time or short-term special assessment to cover the additional costs.
Special assessments should only be used to pay for unanticipated items or expenses not considered in the corporation’s budget or reserve fund planning.
Special assessments are almost always tied to direct costs. However, the calculation of amounts owing from each unit is tied to the proportionate share of fees set out in Schedule D of the corporation’s declaration.
It’s no surprise that special assessments aren’t typically popular with homeowners. Fortunately, there are steps that boards can take to eliminate a bit of the pressureof the payment and process, including:
The board of directors has a fiduciary duty to create a budget that will cover all expenses—a special assessment shouldn’t be an excuse for inefficient budgeting. Special assessments can typically be avoided if proper long-term plans are in place and adequate reserve funds are set aside. Your condominium manager can provide additional guidance on b...
Jun 20, 2024 · What are Special Assessments? In Ontario, a special assessment is a fee that a condominium corporation or HOA may levy on property owners to cover unexpected expenses or major projects that aren't covered by the regular budget. These could include significant repairs, infrastructure upgrades, or emergency situations that require immediate ...
People also ask
Do condo associations levy special assessments?
Can a condo board levy a special assessment?
What is a special levy in a condominium?
What is a condo special assessment?
Did a Toronto condo levy a $14 million special assessment?
How do condo associations communicate with owners about special assessments?
Aug 4, 2023 · For example, some states limit the amount an HOA can collect in special assessments during a calendar year, or require a vote of all the owners to levy a special assessment over a certain amount. If concerned about special assessments, research the laws of your state to see whether they place legal restrictions or requirements on the HOA's power to levy special assessments.
