Imagine struggling to make ends meet paycheck-to-paycheck and now a trip to the mailbox reveals six coupons with $509.00 per month for the next six months. No, that’s not the regular savings coupon found in the Sunday paper; it’s the condo association special assessment due in monthly installments for the next six months. This is the reality that faces over 300 condominium owners in one particular North Lauderdale recently converted condominium project.

Special assessments are charged by condominium associations for immediate usually unforeseen expenses that must be paid. The total amount of the assessments is usually divided by the number of units in the project. In addition, assessments are even more exorbitant in projects that lack adequate reserves. Special assessments include hurricane damage, roof repairs, painting, insurance increase, and security, road resurfacing and landscaping to name a few. Special assessments are treated the same way as regular monthly association fees. If they are not paid over a period of the time, late payments, attorney fees and foreclosure may result.

When assessments are agreed on and passed by an association, the condominium owner has no choice but to pay these assessments. Even if the property is sold the current owner is usually responsible for the payment of assessments.

Many condominium expenses could be reduced significantly if more unit owners took the initiative to attend meetings, give suggestions and vote. As the saying goes ‘United we Stand, Divided we fall’ holds true as one person’s voice has little or no effect on changing anything in a condominium project. 

Temporary roofs often referred to as ‘blue roofs’ are still prevalent even months after Hurricane Wilma and with hurricane season around the corner, I really hope the hurricanes all bypass South Florida. The effect of having another hurricane is unthinkable owing to the fact that many homeowners and condominium projects haven’t fully recovered.

In concluding, whether you live in a single family home or condominium project, homeownership comes with its fair share of expenses. However, the advantages of homeownership far exceed the disadvantages. Therefore, if you find yourself struggling to make these unexpected payments, obtaining a small loan, obtaining additional income or refinancing your home may be some possible solutions.

Leighton Grant

President of Homeview Mortgage Services, Inc.