Special Assessment in Homeowners' Associations: What It Is, How It's Approved, and When It's Mandatory

## Special assessment in a community of owners: what it is, how it is approved, and when it is mandatory The **special assessment** is one of the concepts that generates the most doubts among owners and property managers. When the community's reserve fund is not enough to cover an extraordinary expense, the owners' meeting can approve a special assessment. But when is it legal to do so? Can an owner refuse to pay it? What happens if the apartment is sold before paying it? --- ### What is a special assessment in a community of owners? A special assessment is an **extraordinary financial contribution** that owners in a community must make to cover unforeseen expenses or expenses that exceed the budget. Unlike the ordinary monthly fee, the special assessment is not a recurring expense, but rather responds to a specific need. **Common examples of expenses that trigger a special assessment:** - Urgent repair of the roof or facade. - Replacement of the elevator or its components. - Roof waterproofing. - Accessibility works mandated by law. - Repair of damages from incidents not fully covered by insurance. - Installation of video surveillance systems or renewable energy. --- ### How is a special assessment approved? The LPH explained The approval of a special assessment depends on the type of work or expense it is intended for. The Spanish Horizontal Property Law (LPH) establishes different majorities depending on the nature of the agreement: #### Urgent conservation and repair works (art. 10 LPH) Works necessary for the maintenance and conservation of the building can be carried out directly by the president or the manager when they are urgent, without the need for prior agreement from the owners' meeting. However, they must be ratified at the next meeting. In this case, the special assessment **can be approved by a simple majority** of attending owners who, in turn, represent the majority of the present ownership shares. #### Improvement works (art. 11 LPH) For improvement works that are not strictly necessary (for example, installing a home automation system or renovating the entrance hall without it being essential), the favorable vote of **3/5 parts of the total number of owners and ownership shares** is required. If the annual fee corresponding to each owner exceeds three ordinary monthly payments, dissenting owners are not obliged to pay. #### Accessibility installations (art. 10.1 b LPH) Accessibility works for persons with disabilities or over 70 years old are **mandatory** even if the owners' meeting does not approve them, provided that the annual cost does not exceed 12 ordinary monthly payments per owner. --- ### Who is obliged to pay the special assessment? The obligation to pay the special assessment falls on the **owner at the moment the debt becomes due**, not on who is the owner when the works are carried out. This has important implications for real estate transfers: - If a special assessment is approved and the apartment is sold before the payment deadlines become due, the **buyer will assume the outstanding fees**, unless expressly agreed otherwise. - The seller will be liable for fees already due and unpaid at the time of the transfer (art. 9.1 e LPH). For this reason, it is highly recommended to always request the **community debt certificate** before buying an apartment. The law requires the notary to request it at the time of signing. --- ### Can an owner refuse to pay the special assessment? **It depends on the type of special assessment.** - If the special assessment was legally approved for conservation or necessary works, **the owner is obliged to pay even if they voted against it**. Refusal constitutes a debt to the community. - If the special assessment is approved for non-essential improvement works and the cost exceeds three ordinary monthly payments, dissenting owners **may be exempt** from paying, although they are also excluded from enjoying the improvement until they pay their part (with interest). In case of non-payment, the community can initiate a **summary payment procedure** to claim the debt. This procedure is especially agile and economical for communities. --- ### Can the community defer payment of the special assessment? Yes. It is common for the owners' meeting to approve splitting the special assessment into several monthly installments to facilitate payment for owners. The agreement must clearly specify the total amount, the installments, and the due dates. It is also possible to approve the special assessment to be charged to the reserve fund if it has a sufficient balance, which allows owners not to have to make any extraordinary outlay. --- ### Reserve fund vs. special assessment: what is the difference? The **reserve fund** (mandatory by law, a minimum of 10% of the ordinary budget) is intended to cover conservation and repair works. If the fund has a balance, the community does not need to make a special assessment for those expenses. The special assessment appears when: 1. The reserve fund does not exist or does not have sufficient balance. 2. Expenses are so high that they exceed the available fund. 3. It concerns improvement works that the ordinary fund cannot cover. A good property manager must ensure that the reserve fund is adequately funded to minimize the need for extraordinary special assessments. --- ### How to communicate a special assessment to owners Transparency in communication is fundamental to avoid conflicts. When notifying a special assessment, the manager must inform about: 1. **Reason and description of the expense** that justifies the special assessment. 2. **Total amount** and cost per owner (according to ownership share). 3. **Installments and due dates**. 4. **Budgets or technical reports** that support the expense. 5. **Owners' meeting agreement** approving the special assessment (minutes). With tools like **IgeraFincas**, all this information is available to owners from the moment it is approved, without the need for additional calls or emails. --- ### Frequently asked questions about special assessments **Is it legal to charge a special assessment without an owners' meeting?** Only for urgent and unavoidable works. In any case, it must be ratified at the next owners' meeting. **What happens if the approved special assessment is not fully spent?** The surplus must be reimbursed to the owners or allocated to the reserve fund, as agreed by the owners' meeting. **Is a special assessment taxable under IRPF?** Not for the owner who pays it. For the community, it also does not generate special tax obligations. **Can the bank garnish a special assessment?** If an owner has debts, their assets (including the apartment) can be subject to seizure. The special assessment as a community expense is not garnishable by creditors of the owner. --- ### Conclusion Special assessments are a legal and necessary instrument to keep buildings under a horizontal property regime in good condition. The key lies in approving them correctly, communicating them transparently, and managing them rigorously. If you are a property manager and want your owners to be able to consult the status of special assessments, deadlines, and budgets at any time, without unnecessary calls, discover how [IgeraFincas](https://igerasolutions.com/igerafincas) can transform your office.