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Brought to you by Daulton Read, President of Read Property Management

Get ready for a weekly dive into condo living like never before with Condo’s Corner! Speaking from my perspective as a Condominium Manager, my goal is to entertain and provide valuable management insights and stories that can help you live your condo life a bit better—all with a little bit of wit, charm, and practicality.

You’ve found the perfect condo - great amenities, low condo fees, and a convenient location. Everything feels just right… until a letter arrives announcing a “special assessment.” Suddenly, your peaceful condo life feels a little less relaxing.

If you’ve ever wondered what a special assessment is, why it happens, and how to prepare for one, this article breaks it down, especially for condo owners across Niagara, where older buildings and rising construction costs are making assessments more common than they once were.

What Is a Special Assessment?

A special assessment (sometimes called a special levy) is an extra fee that condo owners must pay on top of their regular monthly condo fees.

It’s used when the condominium corporation doesn’t have enough money in its bank accounts to cover unexpected or underfunded expenses, such as:

• Emergency repairs not covered by insurance

• Structural restoration or waterproofing projects

• Legal expenses or insurance deductibles

• Capital upgrades not originally budgeted for

• Large operating deficits that the board decides to assess to clear out

Under Ontario’s Condominium Act, 1998, boards have the authority to impose a special assessment without needing owner approval, though they must provide notice and transparency about the reason and calculation.

Why Do Special Assessments Happen?

Even with careful financial planning, certain conditions make special assessments unavoidable:

• Unexpected Failures: A major piece of equipment fails earlier than projected.

• Rising Construction Costs: Labour and materials costs have risen sharply across Ontario, especially post-pandemic.

• Aging Buildings: Niagara’s condo stock includes many corporations built 25+ years ago - now entering high-cost repair cycles for roofs, balconies, parking garages and windows.

• Underfunded Reserve Funds: Developers sometimes set initial condo fees low to attract buyers, making major projects that come earlier than expected a significant financial hurdle.

• Delayed Fee Increases: Boards hesitant to raise fees annually may face shortfalls when major work arises.

In essence, a special assessment is a financial bridge - an emergency measure to keep the community safe and functional when reserves fall short, and liquidity is needed urgently.

How Much Could It Cost?

The amount each owner pays is proportional to their percentage of ownership in the corporation, as stated in the declaration - the same method used for monthly condo fees.

The cost of a special assessment depends on the project and the number of units to be divided among.

For example, if there was a 100-unit building facing a $350,000 bill for a balcony restoration project, and they only had $100,000 to put towards it, they would have to assess their owners for the remaining $250,000 to complete the work. For simplicity, we will assume that each unit is the same size. This means that each unit would be responsible for $2,500 ($250,000 divided by 100 units).

Outside of Niagara, most in the industry are familiar with the recent special assessment of a North York condominium, which faced a $70,000-per-unit special assessment to fix its building’s parking garage in 2023. Ouch!

What Happens If You Don’t Pay?

Under Ontario law, special assessments are mandatory. Non-payment can lead to serious consequences:

• Interest and late fees begin to accrue.

• The corporation can register a lien on your unit within 90 days of the default.

• If unpaid, the corporation can enforce the lien and sell the unit to recover the debt.

In short, ignoring an assessment isn’t an option.

How to Prepare and Protect Yourself

Special assessments can feel sudden, but there are ways to protect yourself and your wallet:

1. Read your status certificate before buying - it discloses any pending or potential assessments.

2. Review annual budgets and audited statements to understand your corporation’s financial health.

3. Support gradual fee increases. Low condo fees today often mean big, sudden bills later.

4. Ask questions about the timing of the next reserve fund study and major projects.

5. Build a personal contingency fund; even a few hundred dollars set aside each year can ease the blow of an unexpected levy.

How Read Property Management Helps

At Read Property Management, we work closely with Boards across the Niagara region to plan proactively to reduce the risk of sudden assessments.

Our approach includes:

• Conducting early reserve fund reviews and forecasting cash flow against inflationary pressures.

• Coordinating transparent communication with owners when funding challenges arise.

• Supporting responsible, incremental fee planning to keep corporations financially sustainable.

• Strategically balancing investments in the reserve fund with forecasted project expenditures.

Special assessments are never welcome, but they’re part of the reality of shared ownership. Buildings age, priorities shift, and financial plans must adapt. The strongest tool owners have is awareness: understand the corporation’s financial health, stay engaged, and support long-term planning over short-term convenience.

A condo community that plans ahead not only avoids financial shocks — it safeguards the investment and peace of mind of every owner.

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