Just got a special assessment notice from your Hallandale Beach condo association? You are not alone, and you have options. With new inspection and reserve laws driving major repairs across Broward County, many owners are deciding how to pay, and how to protect their home value. In this guide, you will learn what a special assessment is, why it is happening now, how boards and owners can fund it, and how it can affect a sale or refinance. Let’s dive in.
Special assessments explained
A special assessment is a charge approved by your association to fund a specific expense that is not covered by the regular budget or available reserves. Florida law requires the notice to state the exact purpose and generally limits the use of money to that purpose. Associations also have lien and collection rights if assessments go unpaid. You can review the statute that addresses assessments and liens for the details in Florida Statute 718.116.
How funds can be used
Funds must be tracked for the stated project, like concrete restoration, roof replacement, or life‑safety work. If money remains after the project, the association must handle the surplus according to statute and the governing documents. Transparency in notices and financial reports is required.
Why more assessments now in Hallandale Beach
After the Surfside collapse, Florida adopted milestone structural inspections for buildings three or more stories, with follow‑up testing if deterioration is found. These requirements often uncover repairs that exceed reserves. See the inspection requirements in F.S. 553.899.
In Hallandale Beach, the city administers Broward County’s Building Safety Inspection Program, which notifies associations as buildings reach inspection ages. When reports identify repairs, associations must pull permits and complete work, which frequently leads to special assessments or association loans. You can view the local program overview on the city’s Building Safety Inspection Program page.
Florida also now requires structural integrity reserve studies for eligible buildings and sets rules for funding those items. The Condominium Act outlines how reserves, special assessments, and loans can be used to fund required work. See the budgeting and funding framework in F.S. 718.112.
Association funding tools
Associations typically combine reserves, special assessments, and financing to spread costs and keep projects moving.
- Use reserves first when available and permitted by the study and budget.
- Levy a special assessment for a specific dollar amount and purpose when reserves fall short.
- Obtain a loan or line of credit to finance work, then collect from owners over time to repay.
Many association loans require owner approval and careful disclosures. Boards usually compare lender proposals and consult counsel before pledging assessments as collateral. For context on association borrowing authority tied to new structural obligations, review this legal overview on association borrowing for SIRS obligations.
Board checklist
- Confirm voting thresholds and procedures in the governing documents and F.S. 718.112.
- Obtain multiple lender proposals and independent bids from engineers and contractors.
- Clearly disclose the purpose, total amount, allocation method, and timing to owners.
- Consider phased projects or installment structures to reduce one‑time burdens.
Your payment options as an owner
When an assessment is levied, you can usually choose among several funding paths. Ask your association which options are available and in writing.
- Pay in full from cash or savings.
- Request an association installment plan, if offered. Florida law does not automatically require payment plans, but some boards adopt them to improve collections.
- Home equity loan or HELOC if you have sufficient equity and qualify.
- Cash‑out refinance if rates and closing costs pencil out.
- Unsecured personal loan or debt consolidation for smaller amounts, often faster but higher interest.
- Reverse mortgage for eligible seniors, with required counseling and tradeoffs to consider.
- Check for local assistance. Miami‑Dade piloted a condo special assessment loan program for income‑qualified owner‑occupants, which shows the model and demand, though it is not a Broward program. See a report on the program’s structure and status in the South Florida Sun Times coverage.
Mortgage and sale impacts
A special assessment does not automatically block a sale or refinance. That said, lenders and agencies review the reason for the assessment, whether repairs are safety‑critical, and if work is complete. Projects with unresolved critical repairs can be ineligible for some loan types until remediated. Review how agencies flag ineligible projects in Fannie Mae’s guide.
If you plan to sell, expect buyers and their lenders to ask for inspection reports, repair scopes, and the assessment repayment schedule. Clear documentation helps reduce surprises during underwriting.
Typical Hallandale timeline
- You receive a city or county notice that your building has reached an inspection age, or your board reports that required work has been identified. See the city’s Building Safety Inspection Program.
- An engineer or architect completes the structural reserve study and develops repair scopes and cost estimates.
- The board selects a funding plan. This can include reserves, a special assessment, a loan or line of credit, or a combination, often with owner voting.
- The association notices owners with the specific purpose, amount, allocation, and payment options. Funds are used only for the stated purpose.
- If an owner does not pay, the association can record a lien and seek collection or foreclosure after following the procedures in F.S. 718.116.
An example of spreading costs
Hallandale Beach’s Three Islands neighborhood used a municipal non‑ad valorem special assessment to finance improvements, with installment options and bond or note financing repaid over time. While this is a city project, not a condo association assessment, it shows a local model for spreading costs across owners. Explore the city’s Three Islands assessment overview.
Due diligence before you buy or sell
If you already own:
- Read the association’s notice carefully. Ask for the engineer’s report, contractor bids, and the repair timeline.
- Confirm whether the association will offer installments or borrow to amortize costs, and get the plan in writing.
- Speak with your lender early if you may refinance or use a HELOC. Lender timelines vary when projects involve structural repairs.
If you are buying in Hallandale Beach:
- Request a current resale certificate or estoppel and ask directly about any pending or planned special assessments. Florida’s disclosure rules for resales are outlined in F.S. 718.503.
- Review the most recent inspection reports, reserve study, board minutes about repairs, and the association’s financial statements.
- Ask about project timing, permits, and whether the seller will pay any outstanding assessment balance at closing.
Key takeaways
- Special assessments are increasing because milestone inspections and reserve studies are identifying needed repairs.
- Associations can combine reserves, special assessments, and loans to fund work, often with owner approval.
- Owners have multiple ways to pay. Compare costs, timing, and the impact on your ability to sell or refinance.
- Clear documentation protects you. Ask for written notices, scopes, and schedules, and keep your lender informed.
If you are weighing options for a purchase or sale in a building with an assessment, we can help you navigate disclosures, timing, and strategy. Connect with Levitate Real Estate for a thoughtful, neighborhood‑first plan.
FAQs
What is a condo special assessment in Florida?
- A special assessment is an owner charge approved for a specific expense not covered by the regular budget or reserves, with use limited to the stated purpose under F.S. 718.116.
Why are Hallandale Beach condos seeing more assessments now?
- New milestone inspections and structural reserve requirements reveal repair needs in older buildings, and the city administers the county safety program that triggers these projects. See F.S. 553.899 and the city’s program page.
How can a condo association fund large repairs?
- Associations use reserves, special assessments, and loans or lines of credit, typically with owner approval and disclosures under F.S. 718.112.
What are my options to pay a special assessment as an owner?
- Options include cash, association installments if offered, HELOC or refinance, personal loans, reverse mortgages for eligible seniors, and checking for local assistance programs like the Miami‑Dade model reported by the South Florida Sun Times.
Will a special assessment block my sale or refinance?
- Not by itself, but if safety‑critical repairs are outstanding, some loan programs may be unavailable until work is completed. Lenders follow guidance like Fannie Mae’s ineligible projects.
