What is the role of special assessments in an HOA?

A special assessment is an additional fee charged by a Homeowners Association (HOA) to cover costs associated with specific projects. These assessments are collected on top of the regular HOA dues, and the money is used to fund major improvements, repairs, or other expenses related to a development or community. In California, HOAs are typically governed by the Davis-Stirling Common Interest Development Act, which provides a legal framework for HOA governance. According to the Davis-Stirling Act, special assessments are legal expenses that an HOA can charge, as long as they are allowed by the HOA’s governing documents and voted upon by the association board. It’s important to note that special assessments are different from regular dues, since they are specifically targeted towards certain projects. Many HOAs rely on special assessments to cover expenses for major projects that go beyond the scope of regular dues, such as major repairs, upgrades, or improvements. Special assessments can be a great way to fund necessary projects in an HOA without overburdening homeowners. However, it’s important for HOAs to take the time to draft and review special assessment notices prior to collection, as required by California law. Special assessments should be used judiciously to ensure the fairness and sustainability of the HOA.

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What is the role of special assessments in an HOA?

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