If you live in a condo, your homeowners association may at some time, make a special assessment.
What’s a Special Assessment
Well, that’s a good question. Each month, when you make your homeowners association payment, a portion of that goes into a reserve fund. This fund is used to pay their bills. But sometimes there’s not enough in the reserve account to make the payments. And that’s where the special assessment comes into the picture.
The HOA has the right, under the bylaws, to make a one time charge to all homeowners when unplanned expenses arise. Here’s an example. Many condo buildings had siding called T-111 installed when the homes were built. This is a plywood product. The biggest drawback is that it needs to be painted regularly. And this is an expense that can be eliminated if the HOA installs vinyl siding. But the money isn’t in the reserve fund to pay for vinyl siding. So, the HOA levies a special assessment to raise the funds needed to pay for the siding. This is a one time fee. Each homeowner pays an equal share of the cost. But in the long run, this will save everyone money, and their HOA fees (Hopefully) won’t go up as much.
A special assessment will cost everyone, but it’s a necessary expense. The homeowners association needs to pay their bills just like you do.
When you’re ready to either buy or sell a home, call us. We can help you just like we’ve helped hundreds of other families buy and sell homes. Call Bunny and Art Reiman – Realtors.
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