Special assessments, explained for Florida owners

The annual budget covers the costs a community can predict. A special assessment covers one it could not, or one too large to absorb. The common causes in Florida are an insurance renewal that came in far above the budgeted figure, storm damage and the deductible that goes with it, and a major repair that arrived before reserves were large enough to pay for it.

For older condominium buildings, the repairs identified by a milestone inspection are a frequent cause. That work protects the structure and, with it, the value and insurability of every unit in the building.

Your share follows the formula in your community's governing documents, which is normally the same one used for regular assessments. In many condominiums that is a percentage tied to the unit, so larger units carry a larger share. In many homeowners' associations every lot pays the same. Your declaration has the answer for your community.

The calculator linked below lets you enter the total and your share to see your portion, and what it looks like spread over a payment plan.

For a condominium, the written notice of a special assessment states the specific purpose or purposes it is for, and the money collected is used only for that purpose. If the work costs less than expected, the remainder becomes common surplus, and the board either returns it to owners or credits it toward future assessments.

The notice will also give the amount and the due date or dates. Many associations offer installments for larger assessments. Whether and how is set by the board and the governing documents, so the notice or the manager is the place to look.

Talk to the manager or the board early, before the due date rather than after. Associations deal with this regularly and would much rather arrange something workable than send a late notice. Some lenders also offer loans designed for special assessments.