Many condo communities reach a moment when planned reserve funding is not enough to cover a major repair or an unexpected cost spike. In those cases, boards often consider a special assessment: an extra one-time charge added to owners’ common expenses to cover a shortfall or a large, one-off event.
This proposal is designed for a condo corporation / shared building community that is facing a significant repair project (for example building envelope, balconies, or other capital work) and needs a clear, member-facing decision. The goal is to pick a financially responsible path that protects safety and long-term property value, while keeping payment shocks as manageable as possible for residents.
Reserve planning is meant to reduce the need for sudden supplemental funding, but reserve studies and funding plans are only effective if they are kept current and used as a practical roadmap. Where a repair project outpaces available reserves, the community must decide whether to proceed now with a special assessment (and how to structure it) or to defer and accept the risks of delay.
Use comments to attach your building’s reserve-study summary, engineer’s scope outline, and any legal requirements in your jurisdiction. Keep discussion evidence-based and focused on sustainability: what keeps the building safe, financially stable, and fair to owners.
Move ahead with the major repair project now and approve the necessary funding approach (including the possibility of a special assessment).
Defer the project for now and require an updated reserve plan / scope validation before asking owners to fund or approve the work.
Use the reserve fund to the maximum prudent extent based on the reserve-study funding plan, minimizing the special assessment amount.
Fund most of the project through a one-time special assessment, reflecting that special assessments may be used to cover shortfalls in yearly budgets or single events that impact finances.
Combine a reserve draw with a smaller special assessment to balance affordability today with longer-term reserve stability.
Adopt a clear cadence for reserve-study updates so that capital plans and funding assumptions stay current.
Share a simple annual snapshot: major components, projected timing, and the funding path, to avoid surprises.
Require that major projects reference the reserve-study assumptions and document why deviations are necessary.
Defines special assessments as one-time charges to cover shortfalls or single events impacting finances.
Explains reserve studies as budget-planning tools for major component repair/replacement and stable, equitable funding plans.
