Understanding Condominium Maintenance and Special Assessments
What Your Maintenance Covers
Property Insurance
Grounds upkeep
Landscaping on front entrances
Maintenance of all amenities: Pools, tennis courts, playground
Employee salaries
Office Supplies
Utilities for common areas
Common area reserves
Special Assessments
Special Assessments are fees that are assessed to pay for mutually owned projects. An example of a special assessment would be damage from a hurricane, that exceeded the amount the insurance would pay. For instances, if the condo association incurred 1.5 million dollars in damages, but the current insurance only covered 1 million, the remaining $500,000 would be assessed to all of the owners.
Another example of a special assessment would be to update a swimming pool that is considered a “common element” which has joint ownership of all condo owners. If the board of directors were to decide to upgrade/update the swimming pool, those funds for the word would be assessed to all of the existing owners in the form of a special assessment.
Special assessments are paid along with your condominium dues each month and continue until the job is complete or the full payment is met.