Can my condo association use special assessment funds for something other than what the assessment was originally collected for?
No. Condo bylaw (F.S. 718.116(10)) requires money collected via special
HOA assessment to be used only for the purpose stated in the notice of the
meeting called to approve the assessment. Upon completion of that
project, the condo association must return excess monies, the condo board choosing
either a refund or credit directly to unit accounts.
While the HOA Act does not have the same specific provision, most HOAs
appear to follow the same restrictions on special assessment use that
apply to condo associations.
What is the requirement for unit owners to maintain condo insurance?
Condo law (F.S. 718.111(11)(g)) contains two paragraphs that spell out
the condo requirements. Generally, unit owners are still required to carry
insurance to protect against hazards and liability. The condo
association must be an additional named insured and loss payee on the
unit owner's casualty insurance policy. In HOA's, there is no
statuatory insurance requirement; thus, owners in those communities
must check their governing condo documents, especially in townhouse
communities which frequently require insurance.
Owners will want to insure their interiors because if a storm, fire or
other casualty occurs, normally the condo association only repairs the walls,
windows and doors. This coverage is helpful, funding reconstruction for
which the unit owner is required to pay, and to provide the unit owner
loss assessment coverage to reimburse some portion of special
HOA assessments required to pay for common element casualty reconstruction
not covered by the condo association's coverage.
Learn more about HOA Loans and Condo Insurance
