The one-sixth limit
Section 44-3-80(g)(1) applies to condominium instruments recorded on or after July 1, 2015. It bars those instruments from letting the board impose a special assessment per unit above one-sixth of the unit's annual common expense assessment in a fiscal year "without the approval of a majority of the unit owners". Charges for limited common elements and other costs allocated to particular units are among the exceptions.
| Monthly dues | Annual assessment | One-sixth, the board's yearly limit |
|---|---|---|
| $250 | $3,000 | $500 |
| $325 | $3,900 | $650 |
| $450 | $5,400 | $900 |
| $700 | $8,400 | $1,400 |
Compare those limits with a typical big job. Replacing a $480,000 roof across 120 units costs $4,000 a unit, six times the limit on $325 dues. The board would need a majority of owners to approve, and a vote is never certain.
HOAs and POAs
The one-sixth limit is in the Condominium Act. A homeowners association follows its declaration, and under the Property Owners' Association Act (44-3-225) costs of periodic maintenance, repair and replacement of common areas cannot be specially or disproportionately allocated unless the instrument allows. Whether a particular HOA board can levy a large assessment alone depends on its documents; ask the association's attorney.
Planning instead of assessing
The alternative is to save. A reserve study lists each major component, its remaining life and its replacement cost, and turns them into a monthly contribution. Spread over enough years, a $4,000 bill becomes a modest line in the dues. The calculator on the homepage shows the two paths side by side for your own numbers.
Special assessments still have a place. A storm, a failed component well ahead of schedule or an insurance deductible can all exceed what reserves hold. The point of a plan is that these become the exception.