When reserve funds fall short, boards often levy special assessments to cover structural repairs, litigation costs, or unexpected insurance deductibles. However, these charges must follow strict statutory procedures and fiduciary principles. Missteps expose associations to owner challenges, Department of Business and Professional Regulation (DBPR) arbitration, and courtroom scrutiny.
If your board just announced a hefty special assessment, speak with the best condominium attorneys at Ferrer Law Group to review your legal options before payment deadlines pass.
Special Assessment Under Florida Statute
A special assessment is any charge outside the adopted annual budget that funds association expenses or reserves. Florida Statutes §718.111(4) and §718.112(2)(c)1. direct how boards of directors may impose these levies. Unlike routine maintenance fees, a special assessment often finances concrete restoration, elevator modernization, or post-storm roof replacement—costs that single owners could not shoulder individually. Because the charge reallocates risk across hundreds of unit owners, Florida condo attorneys caution boards to follow the notice, meeting, and voting protocols to the letter.
Boards generally rely on three statutory triggers: (1) true emergencies, (2) budget shortfalls, and (3) capital improvements approved by the membership. An “emergency” exists only when essential services or structural integrity are in imminent jeopardy—think seawall collapse or a fire marshal shutdown. Outside emergencies, directors must record a specific line-item purpose and demonstrate the expense is reasonably necessary, per §718.3026. In Meyer v. Seven Kings Holdings, Fla. 4th DCA 2023, owners overturned a $2 million levy after the court found no documented necessity and inadequate disclosure.
Legal Requirements for Special Assessments in Florida
Florida HOA law sets the ground rules for any charge that falls outside an adopted budget. A “special assessment” funds major repairs, litigation expenses, or insurance deductibles that ordinary dues cannot cover. Directors must:
- Send a 14-day written notice to every unit and post a copy on the property.
- Hold an open meeting with a quorum and detailed agenda stating the exact purpose and per-unit cost.
- Record minutes reflecting the vote and the professional reports that justify the figure.
- Secure membership approval when governing documents demand it—many Broward declarations require a majority vote for assessments above a set threshold.
Emergency repairs—such as a post-hurricane roof replacement—need no prior vote, yet directors must document why delaying action would threaten health or safety. In Meyer v. Seven Kings Holdings, a $2 million levy was voided because the board could not show necessity or proper notice. Boards in Miami-Dade often misstep by bundling optional amenities (e.g., fitness-center upgrades) with structural work; Florida DBPR arbitrators treat that tactic as two separate projects, each requiring its own vote.
Funding methods also carry rules. Loans secured by future assessments must comply with borrowing caps in the declaration, and lenders may insist on priority repayment clauses. A seasoned Dade County HOA lawyer reviews those covenants to avoid future challenges.
Statutory discipline matters because faulty procedure invites DBPR arbitration under §718.1255, injunctive relief in circuit court, and—worst of all—individual director liability for breach of fiduciary duty. Boards that follow the statutes protect themselves and preserve market value for every owner.
Owner Challenges and Defenses
Unit owners have three powerful avenues to contest improper levies:
- Statutory Petitions. A filing within 60 days of the board vote triggers DBPR review. Arbitrators routinely cancel charges when notice is defective or the purpose is vague.
- Contract Actions. The declaration operates as a binding contract among owners. Levies that contradict spending limits can lead to suits for breach of contract. An attorney can seek refunds, interest, and attorneys’ fees.
- Fiduciary-Duty Claims. Directors who act in bad faith—such as approving a luxury pool deck without required votes—risk personal exposure. Courts may order disgorgement or surcharge the board for unnecessary costs.
Practical strategies strengthen an owner’s position. Secure copies of engineering reports, meeting minutes, and reserve studies. Compare the charge to the association’s reserve schedule; levies that exceed the documented need often crumble under scrutiny. Investors should also verify whether mortgagees were notified; failure to do so can void association loans that rely on future assessment streams.
For landlords, passing special assessments to tenants hinges on lease clauses. A rental lawyer can review language governing “additional rent” to avoid unauthorized markups and tenant disputes.
Lastly, remember timing: unpaid assessments become statutory liens that accrue 18 percent interest under Florida HOA laws. Paying under protest preserves the right to recover funds if a challenge succeeds, while avoiding costly lien-foreclosure actions by FL condo lawyers.
Secure Your Property in Weston, FL
Special assessments are unavoidable in South Florida’s high-maintenance climate, but they must follow the law. Ferrer Law Group guides associations toward compliant levies and defends owners against overreach across Broward, Miami-Dade, and Palm Beach counties. Contact us today to protect your investment and keep your community financially sound.
