HOA Special Assessments: What Your HOA Can Charge
We Represent Clients In:
Las Vegas
Reno & Lake Tahoe
Orange County
San Diego
Los Angeles
Clark County
Washoe County
Lake Tahoe
Riverside County
San Bernardino
Key takeaways
- California limits them without a vote. Special assessments totaling more than 5 percent of budgeted gross expenses in a year generally need member approval.
- Emergencies are an exception. Court orders, safety hazards and unforeseeable repairs can justify a larger assessment in California.
- Notice is required. California owners must get 30 to 60 days’ notice before a special assessment is due.
- Nevada has different checks. Reserve assessments generally need no owner vote, but capital improvement assessments need 21 days’ notice of the meeting.
- Unpaid special assessments can lead to a lien. They are treated like other assessments, so keep paying while you dispute one.
A letter announces a five-figure charge for roofs, balconies or a reserve shortfall, due in a few months. An HOA special assessment is a one-time charge on top of regular dues, and it can be the largest bill an owner faces. California and Nevada both set rules on when a board can levy one and how much notice owners get. This guide, part of our series on HOA assessments and foreclosure, explains those rules and how to challenge one.
What is an HOA special assessment?
In short: A charge outside the regular budget, usually to pay for a major repair, a reserve shortfall or an unexpected cost.
Regular assessments, often called dues, fund the yearly budget. A special assessment covers something the budget does not, such as a roof replacement, balcony repairs or a large insurance deductible. It may be due in one payment or in installments.
Special assessments are different from a regular dues increase, which changes what every owner pays each month or quarter. Our guide to the HOA dues increase covers those limits.
Underfunded reserves are the most common cause. When the reserve study shows a gap, the board often has to choose between a special assessment and a loan. See our guide to the California HOA reserve study.
When does a California special assessment need a vote?
In short: When special assessments for the year total more than 5 percent of budgeted gross expenses.
Without member approval, the board may not levy special assessments that, together, exceed 5 percent of the association’s budgeted gross expenses for the fiscal year (Civil Code §5605). This applies even if the governing documents allow more, except for the emergency assessments described below.
Here is how the math works. If the budgeted gross expenses are $1,000,000, the board can levy up to $50,000 in special assessments for the year without a vote. Anything above that generally needs member approval.
Member approval means a majority of a quorum. The yes votes must be a majority of the votes cast in an election where a quorum is present, and also a majority of the quorum (Civil Code §4070). For this rule, a quorum is more than 50 percent of members (Civil Code §5605).
When can a California HOA skip the vote?
In short: In a qualifying emergency under Civil Code §5610.
The 5 percent limit does not apply to assessments needed for an emergency, and there are three kinds (Civil Code §5610). The first is an extraordinary expense required by a court order. The second is an extraordinary expense to fix a threat to health or safety or another hazardous condition.
The third is an extraordinary repair the board could not reasonably have foreseen when it prepared the budget. For this kind, the board must first adopt a resolution with written findings. The findings must explain why the expense is needed and why it was not foreseeable, and they go to members with the notice.
Balcony and walkway repairs found in required inspections often lead to these assessments. See our guide to SB 326 balcony inspection assessments.
What notice must a California HOA give?
In short: Individual notice 30 to 60 days before the special assessment is due.
Owners must receive individual notice of any increase in regular or special assessments not less than 30 nor more than 60 days before it becomes due (Civil Code §5615). A charge that skips this notice can be challenged.
The annual budget report should also warn owners in advance. It must state whether the board expects special assessments to repair major components or fund reserves. If so, it must give the estimated amount, start date and duration (Civil Code §5300). A large special assessment that never appeared in the budget report deserves a close look.
How do HOA special assessments work in Nevada?
In short: Nevada’s statute has no 5 percent rule, but it sets notice and budget requirements.
The board may impose necessary and reasonable assessments to fund reserves, based on the reserve study, without owner approval (NRS 116.3115). Owners must get written notice at least 21 calendar days before any meeting where a capital improvement assessment will be considered or voted on.
Nevada also requires a reserve study at least every five years (NRS 116.31152). The reserve budget sent to owners must show expected special assessments (NRS 116.31151). Check your declaration too, because some require an owner vote for certain assessments.
Facing a large HOA special assessment?
Send us the special assessment notice, the latest budget report or reserve budget, the reserve study, and any board resolution about an emergency. We can tell you in one conversation whether the assessment followed your state’s rules.
How can you challenge an HOA special assessment?
In short: Check the vote and the notice, get the records, and use the dispute process while you keep paying.
Check the vote and notice: in California, add up all special assessments for the year and compare them with 5 percent of budgeted gross expenses. Then check whether you got 30 to 60 days’ notice. In Nevada, check the 21-day meeting notice for capital improvements.
Get the records: ask for the reserve study, bids, contracts and minutes behind the assessment. See our guides to the California HOA records request and Nevada HOA records requests. If the numbers do not add up, see our guide to HOA misuse of funds.
Use the meeting: ask questions at the board meeting before the vote and get answers into the minutes. Our guide to HOA board meeting rules explains your right to speak.
Ask who should pay: some repairs are the association’s responsibility and some are the owner’s. Our guide to HOA common area repair responsibility explains the difference.
Use dispute resolution: in California, you can request internal dispute resolution (Civil Code §5910). If the disputed amount is within small claims limits, you can pay it under protest, along with other amounts levied, and then sue in small claims (Civil Code §5658).
What happens if you do not pay a special assessment?
In short: It can lead to late charges, a lien and, in some cases, foreclosure.
Special assessments are assessments, so the collection rules for assessments apply. In California, an assessment is delinquent 15 days after it is due, unless the declaration allows longer. Capped late charges and interest can then apply (Civil Code §5650). Unpaid assessments can lead to a lien and, after the required steps, foreclosure.
Ask for a payment plan early if the amount is hard to pay at once. See our guides to California HOA foreclosure and the Nevada HOA foreclosure process.
When should you talk to a lawyer about an HOA special assessment?
In short: When the amount is large, the vote or notice looks wrong, or the board calls it an emergency without clear findings.
A review of the budget report, notices and resolution often shows whether an HOA special assessment can be challenged. Our assessment disputes team represents owners in both states. Boards facing a large project should plan the vote and notice timeline early.
Ready to Protect Your Rights?
Whether you just received a special assessment notice or the payment is already due, we can help. We will review the vote, the notice and the records, and tell you where you stand. Schedule your free consultation and speak directly with a Nevada and California HOA attorney.
Frequently asked questions
In California, if special assessments for the year total more than 5 percent of budgeted gross expenses, unless an emergency applies (Civil Code §5605, §5610). In Nevada, reserve assessments need no owner vote, but check your declaration for other limits.
In California, individual notice 30 to 60 days before it is due (Civil Code §5615). In Nevada, 21 days’ written notice of any meeting that will consider a capital improvement assessment (NRS 116.3115).
Yes, in California, for a court order, a threat to health or safety, or an unforeseeable repair (Civil Code §5610). For an unforeseeable repair, the board must first adopt written findings and send them with the notice.
Often yes. Many boards set installments, and some offer payment plans on request. Ask before the due date, because late charges and interest can apply once the payment is delinquent.
It is treated like other assessments. Late charges, interest, a lien and, after the required steps, foreclosure can follow.
Check the vote and notice rules, request the records behind the charge, and raise it at the board meeting. In California, you can also use internal dispute resolution or pay under protest and go to small claims.
Conclusion
An HOA special assessment can be legal and still be challenged if the board skipped a step. California limits special assessments without a vote to 5 percent of budgeted gross expenses, allows emergency exceptions and requires 30 to 60 days’ notice. Nevada lets boards fund reserves without a vote but requires 21 days’ notice of capital improvement meetings.
Check the numbers, get the records, and keep paying while you dispute the charge. For each state’s wider framework, see our Nevada NRS 116 guide and Davis-Stirling Act guide.
Disclaimer: This article provides general information about Nevada and California HOA law and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts and the association’s governing documents.
Ready to Protect Your Legacy?
Recent Articles
Ready to Protect Your Rights?
Whether you are a homeowner facing HOA disputes or a board seeking expert counsel, we are here to help. Schedule your free consultation today and speak directly with an experienced HOA attorney.
