Defined term
Special assessment
A special assessment is a one-time or limited-term charge an HOA or condominium board levies on owners — beyond regular dues — to fund specific expenses or major repairs.
Boards adopt special assessments to fund: post-storm repairs not covered by insurance, deferred-maintenance projects revealed by reserve studies, post-Surfside SIRS-driven structural work, or successful litigation against the developer that nonetheless requires interim funding.
The board's authority to levy a special assessment is set by the governing documents and the applicable statute. Florida Chapter 718 and 720 set procedural requirements (notice, meeting, vote thresholds); Alabama's AUCA and HOA Act do the same. Procedural defects in the adoption are the most common owner challenge. Boards should document the basis, follow notice requirements exactly, and consult counsel before adopting large assessments.
Statutes
- Fla. Stat. § 718.116
- Fla. Stat. § 720.308
- Ala. Code § 35-8A-315