Special assessments, or SPAs, are a vital financial tool for community associations. Whether you're funding large-scale repairs, meeting Florida’s SIRS requirements, or covering unexpected costs, how you handle the process matters.
Following the proper special assessment procedures for community associations helps ensure transparency, protect legal standing, and maintain resident trust. Let’s walk through the essential do’s and don’ts to help your board approach special assessments with confidence.
Do: Review Governing Documents and State Laws
Begin by thoroughly examining your association’s governing documents and applicable state and local laws. These will outline the proper procedures for levying a special assessment. Failure to comply could expose the association to costly legal challenges and jeopardize the legitimacy of the assessment.
Do: Communicate with Transparency
Transparency is the foundation of trust. Be open with members about why the special assessment is necessary, the amount being assessed, and how funds will be used. Building trust through clear communication not only reduces resistance but also prevents loss of faith in the board—a situation that could lead to strained relationships or even efforts to remove board members.
Smart Tip: For an extensive overview on how to build an effective communications strategy, check out Neighborhood.Online’s Ultimate Guide for HOA Communications.
Do: Follow Proper Notice Requirements
Ensure members are informed well in advance of the board meeting where the special assessment will be discussed and voted on. Proper notice is crucial—failing to follow the required conditions precedent can result in an inability to collect from owners who refuse to pay.
Florida statutes require appropriate notice and critical details about the purpose of the special assessment to be given at least 14 days prior to the meeting (see §718.112(2)(c)1, Fla. Stat., §719.106(1)(c), Fla. Stat. and §720.303(2)(c)2, Fla. Stat.). Certain governing documents may require even longer notice periods—be sure to follow the most restrictive rule that applies.
Smart Tip: Visit Becker Law’s blog post The Three Key Elements of Properly Noticing a Special Assessment Meeting or listen to the Take It to the Board podcast episode featuring Donna DiMaggio Berger and Joy Mattingly for more insights.
Do: Seek Legal Counsel
Consult a qualified attorney with expertise in community associations. Legal counsel ensures that your board remains compliant with all statutory and procedural requirements, while also helping you avoid unnecessary disputes. An experienced attorney can save you time and money by understanding the nuances of this unique area of law.
Do: Gain Resident Support
Forge strong community buy-in by crafting a compelling communications strategy in partnership with your management company. Emphasize the long-term benefits of cooperation with the special assessment, and organize a town hall hosted by trusted partners, such as U.S. Century Bank, to educate residents about financial solutions that support the cause.
Do: Comply with SIRS Requirements
The Structural Integrity Reserve Study (SIRS) is essential for condominiums over three stories, and many associations are already past due for compliance. Staying on top of this requirement not only protects the property and its residents but also reduces the likelihood of future emergency assessments. For additional guidance, see Crunch Time: Implementing Structural Integrity Reserve Study (SIRS) Requirements from association attorneys at Haber Law.
Smart Tip: Avoid penalties, fines, and the need for future emergency SPAs by adequately funding reserves and addressing critical structural elements. Read more on issues and potential consequences when condos fail to comply with the Milestone Inspection law on Siegfried Rivera’s blog post by Roberto C. Blanch, Esq.
Don’t: Bypass Member Approval (if required)
Some governing documents mandate member approval for special assessments over a certain dollar amount. Streamline this process by using online voting platforms to secure the necessary votes while maximizing participation efficiently.
Don’t: Use Special Assessments for Routine Expenses
Special assessments should be reserved for extraordinary or unexpected needs. Routine operational expenses should be covered by your annual budget and planned financial strategy. Take time to proactively schedule a meeting to discuss your community’s five-year financial outlook.
Don’t: Neglect Proper Documentation
Maintain thorough and organized records of all decisions and communications related to the special assessment, including meeting minutes, notices, and correspondence with members. As the saying goes: “If it isn’t documented, it didn’t happen.” Solid documentation is crucial for maintaining transparency and ensuring legal protection.
Don’t: Dismiss Resident Concerns
Disregarding resident concerns can erode trust and increase resistance. Consider hosting multiple town halls, both in person and virtual, to foster transparency and answer questions directly. Listening actively and addressing concerns respectfully goes a long way in securing support.
Don’t: Delay Critical Repairs
By following these best practices, your board can carry out special assessment procedures for community associations with professionalism, confidence, and community support. When approached thoughtfully, special assessments become an opportunity to reinforce trust, ensure compliance, and protect your community’s future.
Need expert financial guidance or solutions to support your next special assessment? U.S. Century Bank is here to help. Contact us today to learn more.
