CT August 2026

UNDERSTANDING

SPECIAL ASSESSMENTS

By Mary Ellen Liberatore, Esq., Buckalew Frizzell & Crevina, LLP

Ibnu Fadzil/ iStock/Getty Images Plus

A board may consider imposing a special assess ment for a variety of reasons, including rising insurance costs, unexpected repairs to common elements, higher-than-expected snow removal expenses, and compliance with new laws regarding structural integ rity and reserve funding. Before proceeding, however, the board should confirm with the association’s counsel that it has proper authority under the association’s governing doc uments and that the proposed action is incompliance with New Jersey law. The board should also consider whether other funding mechanisms authorized by the governing documents may be more appropriate. Authority to Special Assess Most association’s governing documents authorize the board to impose special assessments to defray, in whole or in part, the cost of non-emergency reconstruction, repair, or replacement of existing common elements when reserves are insufficient, or for the catch-all reason of “any lawful purpose.” The authority to impose a special assessment, however, is usually subject to limits. Some governing documents require unit owner approval before the board may levy any special assessment. More commonly, the board may impose a spe

cial assessment without unit owner approval up to a speci fied dollar amount. If the expenditure to be funded exceeds the specified dollar threshold, or if the aggregate amount of special assessments imposed in a fiscal year exceeds a stated percentage of the annual common expense assess ment (for example 10%) — unit owner approval may be required before the special assessment is imposed. When unit owner approval is required, the governing documents often mandate a supermajority vote, such as two-thirds of the unit owners to vote in favor of the special assessment. If, however, the special assessment is being imposed to fund corrective maintenance on a building’s primary load bearing systems, New Jersey’s structural integrity and reserve study law, adopted in January 2024, allows boards to impose a special assessment (or secure rea sonable loans) without unit owner approval, regardless of any contrary provision in the association’s governing documents. Before acting, the board must determine the assessment/loan is necessary to maintain structural integrity of a building and secure a written report from a licensed engineer or architect which states that failing to undertake the corrective maintenance will cause an imminent/rea sonably foreseeable health or safety hazard, violate other CONTINUES ON PAGE 48

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AUGUST 2026