The state of Florida has a condo pricing problem, and it has nothing to do with the price of the home. Instead, it’s hefty assessment prices that are becoming commonplace in a state with 1.6 million condominiums, 90 percent of which are over 30 years old and not as structurally sound as state safety officers would like.
It’s not only Florida. Twelve U.S. states now require condo associations to either maintain cash reserve studies or keep a cash reserve schedule paid by residents, including California, Hawaii, Nevada, and Virginia. If those reserves aren’t sufficient to meet statewide standards, condo associations are obligated to make special cash assessments, paid by condo owners, when the HOA doesn’t have enough cash on hand to cover repairs, insurance, or surprise expenses like natural disasters.
“In plain terms, assessments are how the board covers costs that exceed the association's reserves or insurance payouts,” Jordan Blake, director of operations at Shoreline Public Adjusters in Naples, Florida, told NTD by email. “For condo owners, they matter because they often show up as sudden five-figure bills with short payment deadlines—and very little room for negotiation.”
What Recourse Do Condo Owners Have in Fighting High Assessment Fees?
First and foremost, condo owners must get involved before a significant assessment is sent to their inbox.“Typically, owners only get involved when they don't like how things are being handled, instead of staying involved on an ongoing basis,” Melissa Zavala, broker at Broadpoint Properties in North San Diego County, California, told NTD by email. “Involved means going to the HOA meetings, joining the board, reviewing the bids, and keeping an eye on the finances.”
What Do I Need to Know About My New Condo Assessment?
This question covers multiple categories, which need your immediate attention when slammed with a costly assessment.“Whenever one of my clients gets hit with a hefty fee, I tell them to stay calm and start asking questions,” Chris Desino, owner at Florida-based Ocala Horse Properties, told NTD via email. “Ask for the inspection report. Ask how the money is being used, what’s urgent versus what’s just planned upgrades. Ask if there’s a payment plan or if the project can be split into phases.”
What’s the Background Information?
When dealing with your condo board regarding assessments, require them to provide a detailed breakdown of their calculations when presenting the bill.“Ask to see the budget, the data that the board used to come up with the assessment figures, any estimates, and all board meeting minutes,” Brittany Ping, director of property management at Ledgeview Commercial in Manchester, New Hampshire, told NTD by email.
In asking those questions, you’ll find the line of thinking that led to the assessment. “If it's not transparent, see what recourse you have via your bylaws, rules, or the state to get the information. Talk to your neighbors and work together with the board to see if there's another way if the financial lift seems to be too much.”