HOA Special Assessment: How to Legally Levy One and Notify Owners Properly

A special assessment is a one-time levy on homeowners beyond the regular annual dues, typically used to fund a major repair or unexpected expense that the reserve fund cannot cover. Special assessments are among the most legally challenged HOA actions — homeowners feel blindsided, often claim the board exceeded its authority, and sometimes sue. Getting the authorization and notice right is essential.

Board Authority vs. Owner Vote Required

Whether the board can levy a special assessment without owner approval depends on the CC&Rs and state law. Most HOA CC&Rs allow the board to levy special assessments up to a threshold (often 5%–15% of the annual budget) without owner approval. Above that threshold, an owner vote is required. California Davis-Stirling requires owner approval for special assessments that would exceed 5% of the annual budget (Civ. Code § 5605).

Required Notice Content

• The amount of the special assessment per unit/lot
• The purpose — what is it being used for (specific project description)
• Payment schedule — due date(s) and whether installments are available
• The legal authority — which CC&R section authorizes the levy
• Whether an owner vote was taken or is required
• Contact for questions about the assessment

Notice Timeline

Most states require at least 30 days notice before a special assessment is due. California requires 30 days notice for special assessments over $1,800/year (Civ. Code § 5615). Florida Chapter 720 requires notice at a properly noticed board meeting before the assessment can be levied. Nevada requires 10 days notice before the assessment is effective. Verify your state's specific requirement.

When an Owner Vote Is Required

When the special assessment exceeds the board's threshold authority, the board must: call a special meeting or conduct the vote at the annual meeting; provide proper notice of the proposed assessment amount and purpose; obtain the required vote (typically majority or 2/3 of all voting interests); and document the vote in the meeting minutes. The vote must precede levying the assessment — not ratify it after the fact.