What are the rules for a Florida condo special assessment?

How is a condo special assessment approved?

Under section 718.112(2)(c), written notice of a board meeting at which a nonemergency special assessment will be considered must be mailed, delivered or electronically transmitted to unit owners and posted conspicuously on the condominium property at least 14 days before the meeting, and the association must file an affidavit showing it did so.

Section 718.116(10) requires that the specific purpose of any special assessment approved under the condominium documents be stated in a written notice sent to each owner. The funds may be used only for that purpose; once it is completed, leftover money is common surplus that the board may return to owners or credit toward future assessments.

The declaration and bylaws may add their own approval or voting requirements. When an association funds reserves for structural integrity reserve study (SIRS) components through a special assessment, line of credit or loan under section 718.112(2)(f), that funding requires approval by a majority of the total voting interests.[1][2]

Why are special assessments more common since 2024?

For budgets adopted on or after December 31, 2024, owners in a unit-owner-controlled association that must have a SIRS can no longer vote to waive or reduce reserves for SIRS components such as the roof, structure, plumbing, electrical systems and windows. Reserves for those items must follow the most recent SIRS.

Separately, milestone inspection repairs for substantial structural deterioration must begin within 365 days after the local building department receives a phase two report. Associations may pay for this work with regular assessments, special assessments, lines of credit or loans. For budgets adopted on or before December 31, 2028, an association may also, with majority approval of the total voting interests, pause reserve contributions for up to two consecutive annual budgets after a milestone inspection to fund those repairs.[1][3]

What if you're buying a unit with a special assessment?

Florida law makes a new owner jointly and severally liable with the previous owner for unpaid assessments that came due up to the transfer of title, and the buyer must pay amounts owed to the association within 30 days after the transfer. The estoppel certificate must itemize all assessments and special assessments owed on its issue date and those scheduled to come due during its effective period, and the association can't collect more than the certificate states from someone who relies on it in good faith.

Any special assessment, line of credit or loan used to fund SIRS reserves must appear in the annual financial statement that resale buyers are entitled to receive. Condominiums with 25 or more units must also post meeting notices, agendas, budgets and 12 months of approved board minutes online, which can reveal assessments under discussion. How a pending assessment is split between buyer and seller is set by the purchase contract, so have a Florida real-estate attorney review it.[2][1][4]

What happens if an owner doesn't pay?

Unpaid assessments accrue interest at the rate in the declaration, or 18 percent per year if none is stated, and the declaration or bylaws may allow an administrative late fee of up to the greater of $25 or 5 percent of each late installment. The association has a lien on the unit for unpaid assessments and may foreclose that lien after giving the notices the statute requires.[2]