May 2018
A 13th month fee is an additional month of condo fees some condo corporations utilize to increase the Reserve Fund. This is an assessment amounting to 8% of current condo fees. It was created by individuals as a way to increase Reserve Fund contributions without implementing a permanent increase in condo fees or a special assessment.
A 13th month fee is not part of condo governance documents. It is comparable to a special assessment and should be treated as such. It masks a Reserve Fund shortfall best addressed directly by raising condo fees 8% rather than being masked as a 13th month fee.
