What Is a Special Assessment in Real Estate?

A special assessment is an extra fee charged to homeowners—typically by an HOA, condominium association, CDD, or local government—to pay for major repairs, improvements, or unexpected expenses that regular dues or taxes do not cover.

Special Assessment: Simple Definition

A special assessment is a one-time or short-term additional charge imposed on property owners to fund a specific project or cost. It is different from regular dues or taxes because it is not ongoing—it is tied to a specific need.

Why Special Assessments Are Charged

Special assessments are typically used when reserves or operating budgets are not enough to cover:

  • Major repairs (roof, siding, plumbing systems)
  • Emergency expenses (storm damage, sinkholes, structural failure)
  • Capital improvements (clubhouses, pools, gate systems, roads)
  • Large-scale community projects or upgrades
  • Government-required infrastructure work

Examples of Special Assessments

  • A condominium board issues a $4,000 assessment per unit to replace balconies.
  • An HOA charges a $1,200 assessment to repave private roads.
  • A CDD issues a temporary assessment to repair stormwater drainage systems.
  • A city charges a special assessment to property owners to install new sidewalks or streetlights.

How Special Assessments Affect HOAs, Condos, CDDs, and PUDs

Special assessments are commonly used in:

  • HOAs — when reserves cannot cover major repairs.
  • Condominium associations — condo buildings experience costly structural and safety projects.
  • CDD communities — when additional district improvements are needed beyond the original bond.
  • PUDs — for shared facilities like parks, gates, roads, and clubhouses.

They can significantly impact affordability for current and future owners.

Why Special Assessments Matter When Selling

Special assessments can affect the sale of a property because:

  • Buyers often ask whether any upcoming assessments exist.
  • Some states require HOA/condo disclosures about pending assessments.
  • Large assessments may reduce property value if the buyer must pay them.
  • Sellers sometimes agree to pay assessments at closing to secure a deal.

FSBO sellers using Brokerless often highlight “no pending assessments” in their listing remarks to increase buyer interest.

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