Assessments
The "Assessments" page on the Board Synergy Club's website outlines the procedures and regulations governing financial assessments within condominium associations. It details the board's authority to levy regular and special assessments, the requirements for notifying unit owners, and the legal obligations of owners to pay these assessments. The page also discusses the consequences of non-payment, including the association's right to place liens on units and pursue legal action. Additionally, it emphasizes the importance of adhering to Florida Statutes and the association's governing documents when managing assessments.
From the desk of Matthew Henry, Community Association Manager
Many associations are in the process of approving Special Assessments. As previously discussed in updates, Special Assessments are the result from Associations inadequately collecting the necessary funds to complete the deferred maintenance.
While the Associations are proceeding with maintenance, some are under threat of losing their insurance and others are under citation with the County for failing to maintain the property. Regardless of your individual circumstances, the process remains the same.
1 Obtain proposals for your projects:
The state requires that at a minimum of two (2) proposals be obtained for the work to be performed at the Association. There are projects require an engineer. An engineer will use the scope of work and obtain bids on your behalf.
2 Determining the necessary of a Loan or simply additional funds:
The purpose of Association Reserves is for the collection of deferred maintenance for the various projects of the building. When the cost of the project is determined, the Special Assessment will be used to collect the shortfall to cover the expense.
In some instances, the funding of the project could require a bank loan. The Association should consult their attorney. The attorney will review the contracts and loan documents.
The Seacrest Accounting department will be able to assist with contacting Valley National, the bank where your operating account is held, to apply for a Loan. There are other banking institutions that service Condominium Associations. The Accounting department will assist with providing the necessary documentation. When choosing a loan ensure that your attorney is involved.
3 Prepare and ensure that your Notice meets state requirements:
The Notice for a Special Assessment meeting requires that the PURPOSE and exact AMOUNT being assessed is included in the notice. To organize a Special Assessment, contact our accounting department and your property manager. A breakdown of the amount that will be assessed to each style of unit can be included on the notice. Although this information is not required, it will help owners understand the cost.
Approval of the Loan should take place at a duly called Board meeting. The loan approval can be included as an agenda item during a Special Assessment meeting.
*Note: as of July 1, 2024, when approving a contract or proposal at a meeting, a copy of the contract must be included with the posting of the notice. Copies of the contract are not required to be included with a mailing; however, the Board is obligated to provide a copy should a unit owner request it. Unless approved at a previous meeting, it is normal to formally approve the contract as an agenda item at the Special Assessment meeting.
*Note: A Special Assessment is for an exact amount, you cannot approve a Special Assessment without approving the expense.
*Example Meeting Notice
Dear Unit Owner,
On December 1, 2024, at 10:00 A.M. to be held at the Clubhouse.
The meeting will be held for the purpose of consideration of a Special Assessment.
The agenda for the meeting is as follows:
1. Certifying Quorum - Call to Order
2. Proof of Notice of Meeting
3. Old Business:
4. New Business:
a. Board consideration of Contracts/Proposals
b. Board consideration of Bank Loan for projects described below
c. Board consideration of Special Assessment as described below
5. Adjournment
The amount and purpose of the special assessment is as follows:
Special Assessment in the amount of $50,000.00 for the purpose of:
Repayment of Loan to fund Building Structural Repairs and Building
Painting.
4 Mail the meeting Notice to all unit owners:
The state requires that a Special Assessment meeting notice be posted and mailed fourteen (14) days prior to the day of the meeting, to the last address provided by the owner.
5 Hold the meeting and prepare minutes for the Association’s records and accounting:
Prior to the Special Assessment meeting, the Board will have been working together to come to a consensus on to proceed. (All Association business is conducted at Board Meetings) After formally approving contracts and the Special Assessment, prepare the meeting minutes and send to our accounting department so they may order the payment coupons for all the unit owners.
*Note: should your Association need to approve a loan, and a repayment plan is established. Unit owners may be given a choice to pay off their portion of the principal balance saving the cost of interest or a payment plan. The plan is presented to the unit owners in a letter being sent by our accounting department.
No matter the circumstances for the additional funding, it is imperative that the State Statutes are followed. Special Assessments can be challenged if they are not in accordance with requirements, causing delays and setting back necessary projects.
For more information, please consider reading the following articles:
https://www.southfloridalawpllc.com/2024/01/02/special-assessments-rights-and-options-for-florida-condo-owners/
https://www.floridacondohoalawblog.com/2023/01/27/special-assessments/
As your Association moves forward with necessary projects, you may find that insufficient funds have been collected to cover these costs. In these events, the Board of Directors would need to approve a Special Assessment to collect the necessary funds.
Special Assessments can be made necessary for a variety of reasons; including, but not limited to:
- High member delinquency
- Unexpected increases for essential obligations, such as insurance
- Emergency replacements or damages
- Insufficient reserve collection for projects
Unlike an annual budget, which is an estimate for what you expect to spend during the next year, a Special Assessment is for an exact amount. The Association would need to have all their estimates together to know what the shortfall for the project will be.
Regardless of the source of the shortfall, the process will remain the same. Once the total amount needed to cover the shortfall is determined. The Board will speak with the accounting team to determine what amount is owed by each of the unit owners. A unit owners’ portion is determined by their “percentage of ownership” as laid out by the Association’s Governing Documents. This percentage of ownership is also reflected in the annual budget of the Association and the accounting team will work with the Board to determine what is owed.
Although the approval of a Special Assessment is the authority of the Board to approve, the Special Assessment must be approved at a meeting that is considered a “Special Membership meeting” which requires that the notice be mailed and posted at least fourteen (14) days prior to the meeting. Once the totals have been determined, Seacrest can assist the Board of Directors with sending the notice to all unit owners. Seacrest can assist with processing this mailing to be sent on time to satisfy the requirements of the state.
The notice of the Special Assessment will require the following information:
- Purpose of the Special Assessment
- Items being proposed to spend the funds
- Estimated cost of each item
- Estimated assessment for each sized unit
- Number of payments
- Proposed due date
It is up to the Board of Directors to determine how many payments will be expected from the unit owners to collect the funds needed for the Special Assessment. In the event that the purpose of the Special Assessment is to repay a loan. The number of payments will be set by the terms of the loan and the payments will factor in the amortization of the interest rate.
Although most Associations do their due diligence to collect the funds needed to cover Association expenses, there is always the possibility of needing to collect additional funds. The state has given the authority to the Board of Directors to approve additional collections to ensure that the building is properly maintained.
Source: https://www.jimersonfirm.com/blog/resources/faqs/condominium-law/
As defined by Chapter 718 of the Florida Statutes, "assessment" is a share of the funds which are required for the payment of common expenses, which are occasionally assessed against the unit owner.
An assessment is a share of the funds required from unit owners for the payment of common expenses of the association. Special assessments are assessments levied against unit owners other than the assessment required by the annual budget.
Chapter 718, Florida Statutes, provides minimum noticing requirements for meetings to consider special assessments, however, they do not address whether unit owners or the board must approve special assessments. Special assessments should be approved in accordance with the association's documents.
Assessments shall be made against unit owners in an amount which is not less than that required to provide funds in advance for payment of all the anticipated current operating expenses and for all the unpaid operating expenses previously occurred. However, if an adopted budget requires assessments that exceed 115 percent of assessments for the previous fiscal year, 10 percent of the unit owners may submit a written petition for a unit owner meeting in order to adopt an alternative budget, within 21 days after the adoption of the annual budget.
Chapter 718 of the Florida Statutes require assessments be made against units not less frequently than quarterly.
Funds collected from a special assessment shall only be used for the specific purpose(s) it was collected for. However, upon completion of such specific purpose(s), any excess funds will be considered common surplus, and may, at the discretion of the condominium board, either be returned to the unit owners or applied as a credit toward future assessments.
If any unpaid share of common expenses or assessments is extinguished by foreclosure of a superior lien or by a deed in lieu of foreclosure thereof, the unpaid share of common expenses or assessments are collectable from all unit owners in the condominium or cooperative in which the unit is located.
An association shall accept all payments for assessments, including those that are late. However, any late payment received by the association must be applied to any interest accrued, then to any administrative late fees, then to any costs or reasonable attorney's fees incurred in collection, and then to the delinquent assessment.
Source: https://beckerlawyers.com/a-primer-on-special-assessments/
There is an old saying that the two dirtiest words in community associations are “special assessment”. Board meetings at which special assessments will be discussed and imposed are often the only well attended meetings throughout the year in many communities. The reason for this is simple: Tell people they have to pay a special assessment on top of their regular maintenance and they often have questions about the reason for the assessment and objections to the additional financial burden.
Many communities will be undertaking large repair and renovation projects in 2022 and passing special assessments to fund these projects, in whole or in part, is certainly going to be a consideration, particularly for communities who do not have adequate reserves or available lines of credit.
Can your board pass a special assessment?
In order to pass a special assessment, your board must first discuss the substantive and procedural aspects with legal counsel. Your association attorney should be able to advise you whether your board has the authority to pass special assessments and clarify whether or not membership approval is needed.
The condominium and cooperative statutes provide general authority to assess but special assessment authority is typically set forth in an association’s governing documents. Usually, special assessments are levied by the Board, but some documents require membership approval for a special assessment regardless of its purpose or amount while other documents only require membership approval for special assessments over a certain amount or when used to fund discretionary improvement projects. It is critical that these determinations are made before the assessment is levied.
Not every special assessment is passed to fund a repair or renovation project. Often boards pass special assessments to fund operating deficits, replenish reserves, pay for insurance premiums or to address unanticipated expenses like a legal dispute.
What are the mechanics of passing a special assessment?
If an association’s governing documents allow the board to approve a special assessment by a board vote alone, the board still must ensure that it is following the proper protocol to do so. Specifically, the notice for the board meeting at which the special assessment will be discussed and passed must be posted and mailed at least fourteen (14) days in advance of that meeting (and possibly longer if the governing documents require more advance notice than the statutes require). That board meeting notice also must contain an agenda with a description of the purpose(s) for the special assessment and an estimated amount for the assessment. It is important that boards use the proper language to describe the purpose or purposes for the special assessment and how much they approximate it will be. For example, there is a difference between passing a special assessment to repay a loan that was obtained for a repair or renovation project and a special assessment which is being passed to fund that project directly. In addition, all costs associated with the project such as legal, engineering, permits, etc. should all be factored in to the special assessment if your board does not want to run the risk of having to pass a second special assessment. It is always advisable to build a contingency factor into the special assessment for potential cost overruns.
At the special assessment board meeting, the purposes for the assessment stated on the notice cannot be changed but the amount listed on that notice is only an estimate and sometimes does change after the directors discuss the assessment and hear input from the members. After the meeting, notice of the Board Resolution adopting the special assessment and setting forth the purpose(s), amount and payment terms must be sent out to all owners. It is important that boards and their managers, when calculating the allocation for the special assessment, not assume that the allocation is the same as that used for regular maintenance. Some governing documents allocate special assessments on a pro rata basis even though regular maintenance is allocated on a unit type or square footage basis and vice versa.
If a board fails to follow the substantive and procedural requirements when passing a special assessment, the Association will be unable to enforce the assessment if it is not paid and another properly noticed meeting will be required to ratify and readopt the assessment. The fallout from that kind of snafu can be significant but there is an ability to ratify an improperly passed special assessment. See Wimbledon Townhouse Condo v. Wolfson 510 So.2d 1106 (Fla.App. 4 Dist. 1987).
What are the different options for financing a project?
For any large or unexpected expenditure, a board should evaluate the different available funding options. If a project cannot be fully funded via reserves, some communities decide to fund large projects with a combination of reserves, a loan and/or a special assessment. Naturally, several things need to line up for this to happen. First, the community must have reserves set aside for the specific project (e.g. roof replacement, painting, etc.) or a majority vote of the members is required to approve the use of reserve funds for another purpose.
Second, the board must have the authority under the documents to procure a loan and/or pass a special assessment. The advantage to obtaining a loan or using existing reserves is that your board has funds readily available to meet the contractual obligations on the project. A loan can be attractive to owners if the board gives them the option to pay in lump sum or to pay in installments, thereby reducing the risk of owner defaults.
Most financing used to fund association construction projects starts out as a line of credit during the construction phase with the association paying interest only either as a budget line item or as a special assessment. When the project is completed, the line of credit converts to an amortizing loan. At that point, since the total project cost is known and each owner’s share is set, owners may be given the option to pay their share in full, which is then used to reduce the principal, or pay in installments with interest that coincides with the interest accruing on the loan. Many boards decide to impose a “due on sale” clause meaning the balance of special assessment installments would be due in full when a unit is sold. However, there are pros and cons to such a clause. Operationally, reducing the debt every time a unit sells is a good thing. However, if a unit is foreclosed by a first mortgage holder, the “due on sale” clause may be used to wipe out the remaining installments due from that unit, meaning the balance becomes an obligation of the rest of the members, even those who prepaid. The solution requires careful wording of when the “due on sale” clause applies.
What is the best way to handle multi-year special assessments?
With multi-year assessments, numerous units may sell while the special assessment is pending. Every time a unit is being sold an estoppel certificate must be produced at the request of an owner or a lender or the lender’s agent. If a unit is not in collection, that estoppel certificate will be filled out by the manager or a board member. Confirming the existence of one or more special assessments is an essential part of the disclosure to a buyer who requests an estoppel certificate.
If a project is upcoming but an assessment has not yet been levied the estoppel certificate is not required to disclose special assessments that are planned but not yet adopted. If you undertake to make a representation to a prospective buyer, it must be accurate so check with association counsel on the wording of your estoppel certificate.
Get it right the first time!
Cost overruns, lowball estimates and even a change in the board can all result in having to revisit a special assessment. If the Board has to pass an additional special assessment, there are different ways to handle the situation. The second special assessment could subsume the first one or there could be two concurrent special assessments. However, in terms of the psychological impact on your members and the bookkeeping burden on your manager, it is best to err on the conservative side at the outset as it is preferable to cancel the final installment rather than be forced to levy additional assessments.
How do you handle the challenges to collecting a special assessment?
Unfortunately, there will be people subject to large special assessments who are simply unable to pay for them. Association members on fixed incomes and others who have not budgeted for unexpected large special assessments may have very limited options when it comes to borrowing money to pay a special assessment. For people who want to pay but need more time, reasonable payment plans can be utilized but a board must offer that option only after discussing with association counsel how to best structure the plan and when it should be used.
Funding reserves is the best insurance policy against future large special assessments for repair and maintenance projects. This is why the Florida Legislature has mandated bold disclaimer language on the voting materials for reserve funding votes. At a minimum, the association’s operating budget must include an accurate reserve schedule so that the owners can see for themselves the financial projections showing the major expenses on the horizon. The 2022 Legislative Session may result in legislation removing the right of association members to continue waiving or reducing reserves. Having fully funded reserves should reduce both the need for financing and special assessments.
Sometimes owners who don’t want a special assessment think they can stop the special assessment by recalling the board who passed it. However, installing new directors who will rescind the special assessment may prove even costlier particularly if the prior board has signed repair contracts. Moreover, if the special assessment’s purpose is to maintain or repair the common property, the maintenance or repair is not optional and therefore neither is the expense.
What if there is money left over?
In the fortunate event that there are special assessment funds remaining after the purpose for which the assessment was collected is completed, that overage is considered to be common surplus. The board has two options with regard to those funds: issue a refund to the owners in the same shares by which the assessment was paid or apply the common surplus to future assessments. If a unit owner has paid a special assessment in full but sells the unit, he or she is not entitled to a share of the common surplus. Common surplus runs with unit ownership so the current owner would be entitled to his or her share of the common surplus should the association choose to issue a refund.
Special assessments are never going to be popular but if boards, managers and members better understand how to undertake proper fiscal planning for projects, the frustrations related to special assessments may be reduced if not avoided.
(1) "Alternative funding method" means a method approved by the division for funding the capital expenditures and deferred maintenance obligations for a multicondominium association operating at least 25 condominiums which may reasonably be expected to fully satisfy the association's reserve funding obligations by the allocation of funds in the annual operating budget.
(24) "Residential condominium" means a condominium consisting of two or more units, any of which are intended for use as a private temporary or permanent residence, except that a condominium is not a residential condominium if the use for which the units are intended is primarily commercial or industrial and not more than three units are intended to be used for private residence, and are intended to be used as housing for maintenance, managerial, janitorial, or other operational staff of the condominium. With respect to a condominium that is not a timeshare condominium, a residential unit includes a unit intended as a private temporary or permanent residence as well as a unit not intended for commercial or industrial use. With respect to a timeshare condominium, the timeshare instrument as defined in §721.05(35) shall govern the intended use of each unit in the condominium. If a condominium is a residential condominium but contains units intended to be used for commercial or industrial purposes, then, with respect to those units which are not intended for or used as private residences, the condominium is not a residential condominium. A condominium which contains both commercial and residential units is a mixed-use condominium and is subject to the requirements of §718.404.
(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 §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.
(c) Board of administration meetings.-Meetings of the board of administration at which a quorum of the members is present are open to all unit owners. Members of the board of administration may use e-mail as a means of communication but may not cast a vote on an association matter via e-mail. A unit owner may tape record or videotape the meetings. The right to attend such meetings includes the right to speak at such meetings with reference to all designated agenda items. The division shall adopt reasonable rules governing the tape recording and videotaping of the meeting. The association may adopt written reasonable rules governing the frequency, duration, and manner of unit owner statements.
1. Adequate notice of all board meetings, which must specifically identify all agenda items, must be posted conspicuously on the condominium property at least 48 continuous hours before the meeting except in an emergency. If 20 percent of the voting interests petition the board to address an item of business, the board, within 60 days after receipt of the petition, shall place the item on the agenda at its next regular board meeting or at a special meeting called for that purpose. An item not included on the notice may be taken up on an emergency basis by a vote of at least a majority plus one of the board members. Such emergency action must be noticed and ratified at the next regular board meeting. Written notice of a meeting at which a nonemergency special assessment or an amendment to rules regarding unit use will be considered must be mailed, delivered, or electronically transmitted to the unit owners and posted conspicuously on the condominium property at least 14 days before the meeting. Evidence of compliance with this 14-day notice requirement must be made by an affidavit executed by the person providing the notice and filed with the official records of the association. Notice of any meeting in which regular or special assessments against unit owners are to be considered must specifically state that assessments will be considered and provide the estimated cost and description of the purposes for such assessments. Upon notice to the unit owners, the board shall, by duly adopted rule, designate a specific location on the condominium property where all notices of board meetings must be posted. If there is no condominium property where notices can be posted, notices shall be mailed, delivered, or electronically transmitted to each unit owner at least 14 days before the meeting. In lieu of or in addition to the physical posting of the notice on the condominium property, the association may, by reasonable rule, adopt a procedure for conspicuously posting and repeatedly broadcasting the notice and the agenda on a closed-circuit cable television system serving the condominium association. However, if broadcast notice is used in lieu of a notice physically posted on condominium property, the notice and agenda must be broadcast at least four times every broadcast hour of each day that a posted notice is otherwise required under this section. If broadcast notice is provided, the notice and agenda must be broadcast in a manner and for a sufficient continuous length of time so as to allow an average reader to observe the notice and read and comprehend the entire content of the notice and the agenda. In addition to any of the authorized means of providing notice of a meeting of the board, the association may, by rule, adopt a procedure for conspicuously posting the meeting notice and the agenda on a website serving the condominium association for at least the minimum period of time for which a notice of a meeting is also required to be physically posted on the condominium property. Any rule adopted shall, in addition to other matters, include a requirement that the association send an electronic notice in the same manner as a notice for a meeting of the members, which must include a hyperlink to the website where the notice is posted, to unit owners whose e-mail addresses are included in the association's official records.
2. Meetings of a committee to take final action on behalf of the board or make recommendations to the board regarding the association budget are subject to this paragraph. Meetings of a committee that does not take final action on behalf of the board or make recommendations to the board regarding the association budget are subject to this section, unless those meetings are exempted from this section by the bylaws of the association.
3. Notwithstanding any other law, the requirement that board meetings and committee meetings be open to the unit owners does not apply to:
a. Meetings between the board or a committee and the association's attorney, with respect to proposed or pending litigation, if the meeting is held for the purpose of seeking or rendering legal advice; or
b. Board meetings held for the purpose of discussing personnel matters.
Florida Statutes §718.112(2)(g)
(g) Structural integrity reserve study.-
1. A residential condominium association must have a structural integrity reserve study completed at least every 10 years after the condominium's creation for each building on the condominium property that is three stories or higher in height, as determined by the Florida Building Code, which includes, at a minimum, a study of the following items as related to the structural integrity and safety of the building:
a. Roof.
b. Structure, including load-bearing walls and other primary structural members and primary structural systems as those terms are defined in §627.706.
c. Fireproofing and fire protection systems.
d. Plumbing.
e. Electrical systems.
f. Waterproofing and exterior painting.
g. Windows and exterior doors.
h. Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed in sub-subparagraphs a.-g., as determined by the visual inspection portion of the structural integrity reserve study.
2. A structural integrity reserve study is based on a visual inspection of the condominium property. A structural integrity reserve study may be performed by any person qualified to perform such study. However, the visual inspection portion of the structural integrity reserve study must be performed or verified by an engineer licensed under chapter 471, an architect licensed under chapter 481, or a person certified as a reserve specialist or professional reserve analyst by the Community Associations Institute or the Association of Professional Reserve Analysts.
3. At a minimum, a structural integrity reserve study must identify each item of the condominium property being visually inspected, state the estimated remaining useful life and the estimated replacement cost or deferred maintenance expense of each item of the condominium property being visually inspected, and provide a reserve funding schedule with a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each item of condominium property being visually inspected by the end of the estimated remaining useful life of the item. The structural integrity reserve study may recommend that reserves do not need to be maintained for any item for which an estimate of useful life and an estimate of replacement cost cannot be determined, or the study may recommend a deferred maintenance expense amount for such item. The structural integrity reserve study may recommend that reserves for replacement costs do not need to be maintained for any item with an estimated remaining useful life of greater than 25 years, but the study may recommend a deferred maintenance expense amount for such item.
4. This paragraph does not apply to buildings less than three stories in height; single-family, two-family, or three-family dwellings with three or fewer habitable stories above ground; any portion or component of a building that has not been submitted to the condominium form of ownership; or any portion or component of a building that is maintained by a party other than the association.
5. Before a developer turns over control of an association to unit owners other than the developer, the developer must have a turnover inspection report in compliance with §718.301(4)(p) and (q) for each building on the condominium property that is three stories or higher in height.
6. Associations existing on or before July 1, 2022, which are controlled by unit owners other than the developer, must have a structural integrity reserve study completed by December 31, 2024, for each building on the condominium property that is three stories or higher in height. An association that is required to complete a milestone inspection in accordance with §553.899 on or before December 31, 2026, may complete the structural integrity reserve study simultaneously with the milestone inspection. In no event may the structural integrity reserve study be completed after December 31, 2026.
7. If the milestone inspection required by §553.899, or an inspection completed for a similar local requirement, was performed within the past 5 years and meets the requirements of this paragraph, such inspection may be used in place of the visual inspection portion of the structural integrity reserve study.
8. If the officers or directors of an association willfully and knowingly fail to complete a structural integrity reserve study pursuant to this paragraph, such failure is a breach of an officer's and director's fiduciary relationship to the unit owners under §718.111(1).
2.a. If a board adopts in any fiscal year an annual budget which requires assessments against unit owners which exceed 115 percent of assessments for the preceding fiscal year, the board shall conduct a special meeting of the unit owners to consider a substitute budget if the board receives, within 21 days after adoption of the annual budget, a written request for a special meeting from at least 10 percent of all voting interests. The special meeting shall be conducted within 60 days after adoption of the annual budget. At least 14 days prior to such special meeting, the board shall hand deliver to each unit owner, or mail to each unit owner at the address last furnished to the association, a notice of the meeting. An officer or manager of the association, or other person providing notice of such meeting shall execute an affidavit evidencing compliance with this notice requirement, and such affidavit shall be filed among the official records of the association. Unit owners may consider and adopt a substitute budget at the special meeting. A substitute budget is adopted if approved by a majority of all voting interests unless the bylaws require adoption by a greater percentage of voting interests. If there is not a quorum at the special meeting or a substitute budget is not adopted, the annual budget previously adopted by the board shall take effect as scheduled.
b. Any determination of whether assessments exceed 115 percent of assessments for the prior fiscal year shall exclude any authorized provision for reasonable reserves for repair or replacement of the condominium property, anticipated expenses of the association which the board does not expect to be incurred on a regular or annual basis, insurance premiums, or assessments for betterments to the condominium property.
c. If the developer controls the board, assessments shall not exceed 115 percent of assessments for the prior fiscal year unless approved by a majority of all voting interests.
(g) If any unpaid share of common expenses or assessments is extinguished by foreclosure of a superior lien or by a deed in lieu of foreclosure thereof, the unpaid share of common expenses or assessments are common expenses collectible from all the unit owners in the condominium in which the unit is located.
(3) Assessments and installments on assessments which are not paid when due bear interest at the rate provided in the declaration, from the due date until paid. The rate may not exceed the rate allowed by law, and, if no rate is provided in the declaration, interest accrues at the rate of 18 percent per year. If provided by the declaration or bylaws, the association may, in addition to such interest, charge an administrative late fee of up to the greater of $25 or 5 percent of each delinquent installment for which the payment is late. Any payment received by an association must be applied first to any interest accrued by the association, then to any administrative late fee, then to any costs and reasonable attorney fees incurred in collection, and then to the delinquent assessment. The foregoing is applicable notwithstanding §673.3111, any purported accord and satisfaction, or any restrictive endorsement, designation, or instruction placed on or accompanying a payment. The preceding sentence is intended to clarify existing law. A late fee is not subject to chapter 687 or §718.303(4).