Vermont • Special assessment notice

Special assessment from your Vermont condo — and the emergency power the floods unlocked

Vermont's special assessments increasingly come from one source: catastrophic flooding. A UCIOA-style emergency-assessment power plus back-to-back historic floods has put many Vermont associations into immediate assessment mode.

The short answer

In Vermont the board's budget passes unless a majority of owners reject it, and a 2/3 board vote makes an emergency special assessment effective immediately (27A V.S.A. § 3-123) — a power leaned on hard after the 2023 and 2024 floods. There's a 6-month super-lien but no reserve mandate. CondoSignal reads your notice against VCIOA. Free.

Vermont at a glance

Budget approval

Negative option

Passes unless a majority reject.

Emergency special

2/3 board, immediate

Used after the 2023/2024 floods.

Reserves required

No

Flood damage outruns thin reserves.

Super-lien

6 months

Over the first mortgage (§ 3-116).

Negative option, plus an emergency power

Under 27A V.S.A. § 3-123, the board's budget (and any special assessment in it) passes unless a majority of owners vote to reject it. Separately, if the board votes by two-thirds that a special assessment is needed for an emergency, it takes effect immediately on notice — no ratification wait. That emergency power was heavily used after the 2023 and 2024 floods.

No reserve mandate

Vermont permits but doesn't require reserves, so flood and storm damage that outruns the (often thin) reserves becomes a special assessment. The resale certificate must disclose the reserve amount or state that none is included — a blank or zero reserve is a strong signal of assessment risk.

Super-lien and resale protection

Vermont gives the association a six-month super-priority over the first mortgage (§ 3-116), and foreclosure requires a 3-month delinquency plus a board vote. The resale certificate (5-day cancellation) discloses unpaid special assessments, so reading it — and the minutes for post-flood damage — tells you what's coming.

Your rights in Vermont

Vermont owners can reject a proposed budget by majority, and get a 5-day resale-certificate cancellation right (§ 3-123 / § 4-109); emergency specials, however, take effect immediately. None of this is legal advice — confirm against Title 27A and Vermont counsel.

What to check

  • Determine whether the assessment is an immediate emergency special (2/3 board).
  • Check the resale certificate for the reserve amount (or 'none').
  • Read the minutes for unassessed 2023/2024 flood damage.
  • Confirm whether the building carries flood insurance.
  • Check delinquency against the 6-month super-lien window.
  • Use your 5-day resale-certificate cancellation window.

Sources

Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Vermont-licensed professional.

FAQ

Frequently asked questions

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