At some point, an Association will need to pass a special assessment to pay for a necessary project. How the Special Assessment is noticed and passed is critical. If done incorrectly, owners may sue to either 1) prevent the special assessment from being paid, or 2) have their money returned to them.
In a recent Palm Beach case, the owners challenged how the board passed a special assessment to pay for major renovations. The board collected the monies an
d completed the project at a cost of $350,000. Initially, the trial court ruled that once the project was complete, the owners could no longer maintain their lawsuit regarding the special assessment. However, the Fourth District Court of Appeal reversed that ruling,
finding that, even if the project was finished, the owners could still prove that the special assessment violated the Associations Declaration. If correct, the owners would be entitled to a refund from the Association. One of the questions that remain from this case is if the Association had to refund every owner’s payment, where would the money come from? You guessed it... another special assessment. Hopefully done properly this time.