What Is a Special Assessment (Sonderumlage)?

A special assessment (Sonderumlage) is an additional, unbudgeted payment that owners of a condominium association must make when the regular funds – in particular the maintenance reserve – are insufficient to cover unforeseen or major expenses. Typical occasions include an urgently needed roof repair, a burst pipe, elevator damage, or unexpectedly high costs on a construction project already underway.

Unlike the monthly HOA fee, which is calculated in advance for the entire year based on the annual budget, a special assessment covers a specific, usually one-off financing need that has arisen outside the original planning.

When and Why Does a Special Assessment Become Necessary?

Special assessments are mainly needed when:

  • the maintenance reserve is insufficient to fully fund a necessary measure
  • damage occurs at short notice that is not covered by insurance or existing reserves
  • a major modernization measure is resolved (e.g. an energy retrofit, installing an elevator) whose costs exceed the funds available
  • the association faces payment arrears from individual owners, resulting in a short-term shortage of liquid funds to meet ongoing obligations (e.g. tradesperson invoices)

How Is a Special Assessment Decided?

A special assessment is decided – like most WEG matters – by majority resolution at the owners' meeting (or by circular resolution if all owners agree). The resolution must clearly settle, in particular, the following points:

  • the total amount of the special assessment and its specific purpose
  • the allocation key by which the sum is distributed among owners – usually the same key as for regular costs (typically co-ownership shares, unless the declaration of division provides otherwise)
  • the due date, i.e. by when owners must make payment, as well as the possibility of installment payments where applicable

An imprecise or incomplete resolution can be challenged – one more reason why careful preparation by the manager and a clearly worded resolution matter.

Difference from the Regular Maintenance Reserve and HOA Fee

The regular HOA fee already includes a planned monthly contribution to the maintenance reserve, which is intended precisely for such purposes – future major maintenance and repair measures. A special assessment only comes into play once this reserve is insufficient for the specific need. It is therefore not a substitute for solid reserve-building, but a tool for closing short-term financing gaps when regular provisioning is insufficient or a loss exceeds the calculations.

What Happens If an Owner Does Not Pay the Special Assessment?

The payment obligation arising from a valid special-assessment resolution applies to every owner regardless of whether they voted in favor at the meeting. If an owner fails to pay on time, they risk:

  • default interest and, where applicable, reminder fees under the terms of the community rules or the management contract
  • legal action by the association, represented by the manager, potentially up to a payment order and litigation
  • in severe, persistent cases of arrears, theoretically even the possibility, under Section 17 WEG, of a claim for forced sale of the ownership unit, if the owner seriously and repeatedly breaches their obligations to the association – in practice a rare, but real, last resort

Since a payment default by one owner burdens the other co-owners financially (the WEG must still pay for the resolved measure regardless), consistent debt management by the manager is important.

How to Avoid Frequent Special Assessments

The most effective protection against recurring special assessments is an appropriate, realistically calculated maintenance reserve. Recommended measures:

  1. Regularly reviewing the reserve level based on the building's age, condition, and upcoming works (e.g. via maintenance planning or an expert appraisal)
  2. Forward-looking maintenance planning over a period of 10–15 years, to price in major works early
  3. Transparent communication from the manager about the state of the reserve and planned investments, so owners are not caught by surprise
  4. Early resolution-making on necessary measures, rather than postponing repairs until an emergency

Wellhöner Immobilienmanagement calculates realistic maintenance reserves for the associations we support and informs owners early and transparently whenever an additional financing need is emerging – so that special assessments remain the exception.