When are special assessments typically proposed?

Special assessments are typically proposed when emergencies require immediate funding. This situation arises when unexpected expenses occur that cannot be absorbed by the current budget or reserve funds. For instance, if a major repair is needed due to damage from a storm or other unforeseen circumstances, the community association may need to collect additional funds from homeowners to address these urgent costs.

Other times special assessments may not be as appropriate, such as during annual meetings only or at the end of the fiscal year, as these meetings or timeframes may be more suited for discussing budget forecasts or standard budget adjustments rather than emergency funding needs. Similarly, while there is a connection to budget approvals, special assessments are distinct from routine budget processes and are typically initiated solely due to the necessity of immediate financial resources in response to unforeseen challenges.