Special Assessments Charged by Condo & Homeowners’ Associations
As attorneys who frequently represent homeowners’ associations here in Florida, we often see associations challenged on what are known as special assessments. These assessments are often necessary, still, there are tactics that associations can use in order to mitigate some of the effects and avoid litigation from owners in some circumstances, as we discuss below. Regular Fees, Reserves, And When/Why Special Assessments Are Needed Special assessments are fees that are charged in addition to regular fees that are expected; typically to make up for budget shortfalls. While regular dues are charged monthly or quarterly, in order to keep the community running in terms of operating expenses such as electricity, exterior maintenance, insurance, landscaping, management, and others, associations also keep reserves to fund such expenditures such as street repaving and roof replacement. Reserve needs are determined by reserve studies, which determine the schedule for repairs over a 30-year timeline, as well as estimated costs. Florida requires condo associations to have reserves studies performed once every three years, however homeowners’ associations typically only have the studies done as often as what their governing documents require. When an association does not properly fund the reserves, this is when problems typically arise. From a business and legal perspective, the reality is that operating costs for associations will typically increase over time and if they are not addressed in terms of assessing regular special assessment fees, associations could find that they are grossly underfunded for some major repairs and replacements, which could result in owners owing thousands of dollars in special assessment fees; years later. In addition, sometimes these fees also have nothing to do with associations failing to follow their reserves but instead result from an unexpected disaster that insurance perhaps did not cover and/or resulted in a rapid deterioration in construction, for example. Therefore, from a fiduciary duty perspective, condo and homeowners’ associations must regularly levy special assessment fees. Mitigating the Effects It might be easier for owners to deal with these assessments if they are added onto monthly condo fees in small amounts overtime. That being said, sometimes these funds are simply needed for immediate use, in which case associations have no choice but to charge special assessment fees as one-time charges paid by each owner as lump sums. This is why it is important for owners to review the governing documents and financials before purchasing in a community. Contact Our Florida Homeowners’ Association Attorneys Associations play an important role in upkeep, maintaining operations, and in ensuring that property values stay at a certain level. In working to ensure that important goals are met, working with the right attorney to protect your association is imperative. At HD Law Partners, our Tampa homeowners’ association attorneys are prepared to work with you to provide that legal advice and representation that you can count on. Contact us today to find out more. Resource: pilotonline.com/life/home-garden/vp-hl-condo-conversations-ulrich-0813-253-53338-y7phlgsp6jhmvnspufhbqnptgm-story.html Posted in Homeowners Association, Landlord Tenant | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us