What Every Owner Should Know

Owning in a condominium community comes with many benefits – shared amenities, managed maintenance, and a sense of community. But it also comes with shared costs. These are known as assessments or dues, and understanding them is critical for both owners and boards.

What Is a Condominium Association (COA)?

A Condominium Association (COA) governs a shared residential property where owners typically own only the interior of their unit. The rest – from roofs and exterior walls to landscaping, plumbing mains, and amenities – is considered common property.

Because so much of the property is shared, COA assessments are broader and usually higher than the dues in a Homeowners Association.

COAs vs HOAs: What’s the Difference?

• HOA (Homeowners Association): Governs single-family or townhouse communities. Owners generally own the home and the land beneath it. HOA dues fund amenities like pools, entrances, or clubhouses, but rarely cover building structure or insurance.
• COA (Condominium Association): Responsible for maintaining and insuring key building systems, structural components, and common elements.

Assessments: HOA dues are usually lower; COA assessments are higher but cover more – insurance, reserves, utilities, and infrastructure.

Legal Basis (Florida example): HOAs operate under Chapter 720, Florida Statutes. COAs fall under Chapter 718, which imposes stricter rules – including mandatory reserves, inspection requirements, and stronger enforcement rights.

Types of Condominium Assessments

1. Regular (Operating) Assessments

Cover the community’s everyday expenses: landscaping, insurance premiums, management fees, and utilities. Typically paid monthly or quarterly.

At some communities, these are called monthly dues, while at others they are billed as Quarterly Assessments. The terminology and billing cycle may differ, but the purpose is the same: to fund the association’s routine operating budget and reserve contributions. Whether you pay $400 per month or $1,200 per quarter, it’s simply a different schedule for the same obligation.

2. Reserve Assessments

Savings for long-term projects like roof replacements, road resurfacing, or stormwater system repairs.

• Florida law [§718.112(2)(f)2.a] requires line-item reserves for major components that have a deferred maintenance expense or replacement cost that exceeds $10,000.
• Under SB 4-D, waiver options are being phased out, requiring stronger reserve planning. For buildings three stories or higher, associations can no longer vote to waive or reduce funding for structural reserves.

3. Special Assessments

One-time charges when operating or reserve funds fall short.

Examples: hurricane damage, emergency plumbing failures, or unexpected legal costs. Special assessments can be large and unpopular, but they’re legal if adopted correctly.

Legal Authority and Enforcement

• Adoption: Assessments must follow both the governing documents and state statutes.
• Owner Responsibility: Under §718.116, each owner is responsible for all assessments that come due while they own the unit. If a previous owner didn’t pay, the new owner – or anyone who inherits the unit – can also be held responsible for those unpaid amounts.
• Enforcement Tools: Associations may charge late fees and interest, record liens, and even foreclose if assessments remain unpaid.

Why Assessments Matter

• For Owners: Assessments aren’t optional – they’re the price of shared ownership.
• For Boards: Proper funding avoids deferred maintenance, lawsuits, and falling property values.
• For Buyers: Understanding the difference between COA assessments and HOA dues helps set realistic expectations before purchasing.

Conclusion

Condominium assessments are more than just “monthly or quarterly fees.” They are the foundation of responsible condo living, ensuring that buildings remain safe, functional, and valuable. Knowing how they work – and how they differ from HOA dues – equips you to budget wisely, hold boards accountable, and protect your long-term investment.