Homeowners' associations often face unforeseen expenses or improvement projects that exceed the regular budget. In these cases, special assessments become a key tool to finance these costs. However, their implementation often raises questions and, at times, leads to conflicts among residents. In this article, we will analyze and explain the most common questions about special assessments, such as: What exactly is a special assessment? When is it mandatory to pay one? Can an owner refuse? Furthermore, we will cover all these topics in detail, including legal aspects, types of special assessments, and how they can be managed effectively.
A special assessment is an extraordinary financial contribution that property owners in a community must pay to cover expenses not foreseen in the annual budgets. Unlike regular fees, which are typically allocated for routine maintenance, special assessments are used to cover urgent repair costs, such as leaks or elevator repairs, to carry out improvements in common areas like swimming pools or facades, and to cover other legally mandated works, such as modifications to provide accessibility.
The implementation of special assessments is regulated by the Horizontal Property Law (LPH), more specifically in articles 9, 10, and 17.
Not all special assessments are the same; their classification depends on factors such as their purpose or the legal requirements for their approval. The different types of special assessments include the following list.
This is the most common type of special assessment and is used to cover necessary and foreseeable expenses not included in the annual budget. Examples include the repair of common elements such as elevators, pipes, or roofs, for periodic building maintenance, such as facade cleaning or gutter cleaning, or for the replacement of equipment like boilers or lighting systems.
Approval for ordinary special assessments requires a simple majority, which is half plus one of the voting attendees at the meeting.
This type of special assessment is applied when urgent and unforeseen expenses arise that cannot wait to be addressed at the next ordinary meeting. Typical cases include serious breakdowns such as structural damage to the building or floods, safety repairs, such as electrical failures posing a danger, or for administrative penalties, such as paying fines for non-compliance with urban planning regulations.
Approval for extraordinary special assessments also requires a simple majority, but in situations of extreme urgency, the board can delegate the decision to the president or administrator.
This type of special assessment finances works that are not strictly necessary but improve the quality or value of the property, such as the installation of renewable energy systems like solar panels or electric vehicle charging points, aesthetic renovations like changing flooring in common areas or decorating the entrance hall, or the addition of new amenities such as a gym or community garden.
Its approval requires a three-fifths majority of the owners, as indicated in Article 17.1 of the Horizontal Property Law (LPH).
This special assessment is required when regulations mandate works in the building and owners cannot refuse to pay, such as required accessibility improvements like ramps or elevators for people with reduced mobility, for energy efficiency to comply with the energy certificate, and for fire protection, such as the installation of fire extinguishers or fire doors.
Approval for this special assessment does not require a vote, as it is a legal obligation.
The reserve fund is a community saving for emergencies. If it's depleted, the board can approve a special assessment to replenish it. Its approval requires a simple majority.
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There are situations that justify a special assessment, such as a lack of funds if the annual budget doesn't cover an unforeseen expense, for mandatory works like renovations required by law, for emergencies for urgent repairs that cannot wait, or for voluntary improvements with investments that can increase the building's value.
The detailed approval process for a special assessment consists of an initial proposal where the president or administrator presents the project at the meeting, along with an estimated budget. Then, a meeting is called, notifying all owners at least 10 days in advance, including the agenda. At that point, it is subject to debate and a vote, where the necessity and cost of the work are discussed, and a vote is taken according to the requirements for the type of special assessment.
Then, minutes must be drafted with the voting results and the details of the special assessment, and finally, owners are notified by sending a written notice with the amount to be paid, the payment deadline (which is generally 1 to 3 months), and the consequences of non-payment.
If the necessary quorum is not reached at the first call, a second one is held with a lower quorum.
Various factors influence the cost of special assessments, such as the type of work; for instance, a plumbing repair might cost a few hundred euros, while renovating the facade could exceed 50,000 euros.
Additionally, the size of the community influences the cost, as in large buildings, the cost is distributed among more owners. Location also affects prices, as they vary by city and the availability of distribution. Distribution by share may have exceptions, as if damage affects only some owners, the cost can be distributed among those affected, and in communities with special bylaws, the distribution may vary.
Those obligated to pay are the current owners, even if they acquired the apartment after the special assessment was approved (unless otherwise agreed upon in the purchase agreement), usufructuaries, who in some cases must bear the cost, and even tenants, who are not obligated unless it has been agreed upon in the rental contract, which is very uncommon.
If the apartment is for sale, the seller is responsible for special assessments approved before the transfer of ownership. And if the apartment is rented, the owner (landlord) is the one who must pay the special assessment, although they can agree with the tenant for its payment (uncommon).
When the special assessment has not been approved correctly, when it concerns an improvement that is not necessary and the owner voted against it, and when the expense is not properly justified, for example, due to a lack of a detailed budget.
In that case, the community can charge late payment interest of up to 20% annually, seize the defaulting owner's assets, or take legal action.
You should request information such as the meeting minutes, budgets, and invoices, then submit an internal appeal with a letter of disagreement to the president or administrator, and request a new vote at the next meeting. You can also file a lawsuit in the Court of First Instance or opt for mediation to avoid lengthy legal proceedings.
In the Court of First Instance, there is a 20-business-day period to file a lawsuit from the date of notification. If you win the appeal, the special assessment is annulled or modified, and if you lose, you must pay it, likely with late payment interest.
It is advisable to attend meetings to vote in person, review budgets before approval, and consult a lawyer if you have legal questions.
Yes, but the community must first demand payment of outstanding fees and apply the special assessment to everyone, including those in default.
Only if approved by a 3/5 majority. If you voted against it, you might be able to refuse.
Decisions are valid if there was a quorum. Absence does not exempt you from payment.
Yes, it can be cancelled or modified by unanimous vote.
It's not mandatory, but it's advisable to avoid additional charges.
A second special assessment can be requested, but it must be voted on again.
No, unless otherwise agreed upon in the sale.
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Special assessments are necessary to maintain a community's functionality and value, but their implementation must be transparent and comply with the law. If you have doubts about your payment obligation, review the board's agreements, and in case of conflict, seek legal advice. Good management prevents future problems and ensures peaceful coexistence among neighbors.
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593.050,00 €
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