Overage in Special Assessment

Started by NicholasL2 • 1 replies • 1337 views

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NicholasL2 (Florida)
Posts: 5

Posted:

Our Condominium in Florida had a special assessment from Hurricane Wilma and as of today have $28,000 left over from the repairs that were completed. My question is can the Board use those excess funds for a special project, reduce assessments for 2011, transfer to reserves without the approval of the membership?

AnnJ1 (Florida)
Posts: 122

Posted:

Hi Nicholas,
According to the FL statutes for condominiums... see last sentence below:

718.116 Assessments; liability; lien and priority; interest; collection

(10) The specific purpose or purposes of any special assessment, including any contingent special assessment levied in conjunction with the purchase of an insurance policy authorized by s. 718.111(11), approved in accordance with the condominium documents shall be set forth in a written notice of such assessment sent or delivered to each unit owner. The funds collected pursuant to a special assessment shall be used only for the specific purpose or purposes set forth in such notice. However, upon completion of such specific purpose or purposes, any excess funds will be considered common surplus, and may, at the discretion of the board, either be returned to the unit owners or applied as a credit toward future assessments.

HTH,
Ann

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