HOA Assessment Authority in Florida: Who Can Raise Dues and By How Much?

The Bottom Line

Assessment authority — the power to charge owners money — flows from a specific stack of documents and statutes, in this order: the recorded declaration, the bylaws, the applicable Florida statute, and the board’s fiduciary duties. The board cannot exceed the authority granted in those documents, but within that authority, the board has substantial discretion to set regular assessments through the annual budget. Special assessments and large assessment increases often trigger additional procedural requirements — sometimes a member vote, sometimes a notice-and-objection process, sometimes both. Florida condominium associations operate under a specific and widely misunderstood 115% threshold mechanism for regular assessment increases. The board’s job is to know exactly which rules apply to its community and to follow them precisely.

Operational Context: Where Assessment Authority Comes From

Every community association is created by a recorded declaration — sometimes called the CC&Rs (covenants, conditions, and restrictions), the master deed, or the declaration of condominium. The declaration is, in effect, the constitution of the community. It creates the association, defines what is common-area and what is private, and grants the association the power to charge owners for the cost of maintaining the common interest. Every dollar the association ever collects ultimately traces back to that grant of authority.

Within the declaration, the assessment provisions typically address four distinct things: (1) the purpose for which assessments may be levied (operating expenses, reserves, capital improvements, special purposes); (2) who has authority to set the assessment (usually the board, sometimes with member ratification); (3) any limits on the amount or the rate of increase; and (4) any procedural requirements (notice, hearings, voting thresholds, developer approval during the declarant control period).

The bylaws and Florida statute layer on top of the declaration. Bylaws typically govern the procedural side — budget preparation timelines, meeting notice, member ratification requirements. Florida Statutes Chapters 718 (Condominium Act) and 720 (Homeowners’ Association Act) supply default rules where the declaration is silent and, in some cases, impose mandatory rules the declaration cannot override.

Regular Assessments: The Annual Budget Lever

Regular assessments are the recurring contributions that fund the association’s annual operating budget and (in most well-run communities) its reserve contributions. They are typically collected monthly or quarterly and adjusted once a year through the board’s budget adoption process.

In most Florida associations, the board has the authority to set regular assessments — not to be confused with the authority to create the assessment in the first place. The declaration creates the assessment; the board sizes it. The sizing process typically looks like this:

1. Management or the treasurer prepares a draft annual budget covering operating and reserve contributions.
2. The board reviews the draft in one or more open board meetings, which must be noticed at least 48 hours in advance under § 720.303 (HOA) or § 718.112 (condominium).
3. The board adopts the budget and the associated assessment, typically by a simple majority unless the bylaws require a higher threshold.
4. Notice of the new assessment is sent to owners per the declaration, bylaws, and statute — usually 30 to 60 days before the new fiscal year begins.

Florida HOAs under Chapter 720 do not have a statutory cap on year-over-year increases by statute. Their assessment limits come from the declaration. Florida condominium associations, however, operate under the specific 115% mechanism described below.

The Florida 115% Threshold: A Notice Mechanism, Not a Cap

Florida condominium associations operate under a uniquely visible rule: when the board adopts an annual budget that would require regular assessments to exceed 115% of the prior fiscal year’s assessments (excluding reasonable reserves, anticipated expenses not customarily incurred annually, and assessments for betterments), members holding at least 10% of voting interests may, within 21 days of budget adoption, submit a written request for a special meeting to consider a substitute budget. The special meeting must be held within 60 days of budget adoption, and a majority vote of all voting interests is required to adopt the substitute budget.

This 115% threshold is widely misunderstood. It is not a cap on what the board can do; it is a notice-and-objection mechanism that gives members a structured opportunity to push back. The board still has the authority to adopt a budget that exceeds 115% — but doing so opens a defined window during which members can attempt to substitute their own budget.

Florida homeowner associations under Chapter 720 do not have an equivalent 115% mechanism by statute. Their assessment limits come from the declaration.

Developer-controlled boards in Florida condominiums face a more restrictive version of this rule: during developer control, regular assessments cannot exceed 115% of the prior year without approval by a majority of voting interests. This restriction disappears after turnover to the owners.

The 115% calculation excludes three categories from both the numerator and the denominator:

• Reasonable reserves (reserve contributions are excluded from the comparison)
• Anticipated expenses not customarily incurred annually (one-time or non-recurring items)
• Assessments for betterments (capital improvements that increase the value of the common area)

Boards should compute the 115% threshold on the operating portion of the assessment, not the total assessment including reserves, before determining whether the member-petition process is triggered.

Florida Post-Surfside Reserve Requirements

Florida’s post-Surfside legislative reforms (SB 4-D in 2022, HB 913 in 2025) have fundamentally altered the reserve landscape for condominium associations. For qualifying condominium buildings (three stories or more), the longstanding practice of voting to waive or reduce reserves for Structural Integrity Reserve Study (SIRS) components is no longer available. Mandatory reserve funding for SIRS components is now required by statute, regardless of member vote.

This means boards of qualifying condominium associations that have historically underreserved must now include full SIRS-component reserve contributions in their budgets. These increases can be substantial — in some communities, they drive assessment increases well above historical norms. Boards relying on pre-2022 assumptions about what reserves can be reduced or waived are operating on outdated information.

Special Assessments: A Different Authority Question

Special assessments are one-time charges levied to fund a specific purpose — typically a capital project, a reserve shortfall, a major repair, or an unbudgeted operating event such as an insurance deductible after a casualty loss. Because they fall outside the annual budget cycle, they typically carry stricter procedural requirements than regular assessments.

The most common requirements under Florida law are:

• A specified purpose. The board must adopt the special assessment for an identified purpose, and the funds must be used for that purpose. Spending special-assessment funds on unrelated needs is a fiduciary problem and, in some cases, a statutory violation.
• Member approval for large special assessments. Most declarations require a member vote for special assessments above a stated threshold — commonly a percentage of the annual budget. Voting thresholds vary; majority and two-thirds approval are both common.
• Florida condominium-specific notice requirements. Under § 718.116(10), special assessment notices for condominiums must include specific content: the purpose of the assessment, the total amount, the per-unit assessment, the due date or payment schedule, and the consequences of nonpayment. Defects in the notice content can invalidate the special assessment.
• Florida HOA special assessments are governed primarily by the declaration and bylaws, with § 720.303 supplying the procedural framework for the meeting at which the assessment is adopted.

How the Authority Stack Resolves Conflicts

When provisions conflict, the controlling order is generally: statute (where mandatory) → declaration → bylaws → board policies. A board policy cannot create assessment authority the declaration didn’t grant. The declaration cannot override a mandatory statutory rule such as the condominium 115% special-meeting procedure or the SIRS reserve-funding mandate.

Why This Matters

Wrongful assessment claims are among the most common lawsuits associations face. A board that increases assessments without authority, fails to follow notice procedures, or levies a special assessment outside its declaration limits invites litigation that can take years to resolve and can result in invalidation of the assessment, reimbursement of paid amounts, and personal exposure for the directors.

Assessment increases drive collection patterns. A large or poorly explained increase produces a predictable spike in delinquencies. The board that announces a 22% increase in a one-line notice without context creates a collection problem before the new fiscal year even begins. The board that explains the increase, ties it to specific operating cost changes, and offers a payment plan to affected owners collects significantly more of what it bills.

Florida’s legal landscape continues to evolve. The post-Surfside reforms (SB 4-D in 2022, HB 913 in 2025) have effectively eliminated the longstanding practice of voting to waive reserves for SIRS components in qualifying condominium buildings. Boards relying on pre-2022 assumptions about what reserves can be reduced or waived are operating on outdated information and face significant exposure.

Best-Practice Guidance

1. Inventory your assessment authority before each budget cycle.

The treasurer (or counsel during the first year of a new declaration) should produce a one-page summary of the assessment authority: what the declaration grants the board, what limits apply, what triggers a member vote, what statutory notice is required, and what dates anchor the budget calendar.

2. Compute the 115% comparison before the budget meeting (condominiums).

Before presenting the budget for adoption, compute whether the proposed regular assessment (operating portion, excluding reserves, non-recurring expenses, and betterments) exceeds 115% of the prior year. If it does, be prepared for the member-petition process. Communicate the reason for the increase proactively to owners.

3. Confirm SIRS reserve requirements are being met (qualifying condominiums).

For condominium buildings three stories or more, confirm with the reserve study specialist and counsel that SIRS-component reserve contributions are fully funded in compliance with the post-Surfside legislation. Waiving these reserves is no longer legally available.

4. Build assessment increases into a multi-year plan.

One-time large increases generate more conflict than steady, predictable adjustments. A board that adopts a three-to-five-year assessment glide path tied to its reserve study and operating projections gives owners the predictability they need.

5. Document the rationale.

The board’s minutes should record the operating cost drivers behind the increase: insurance renewal premium changes, contractor pricing, reserve study recommendations, post-Surfside compliance requirements, utility cost increases. A minute book that shows deliberation is the single best defense to an authority challenge.

6. Reserve special assessments for actual special purposes.

Using a special assessment to fix a recurring operating shortfall is a sign that regular assessments are too low. Using a special assessment to fund a one-time capital project, an insurance deductible, or a casualty loss is appropriate. The distinction matters legally and operationally.

Common Mistakes & Pitfalls

Actionable Takeaways

1. Locate the assessment article in the declaration. Read it. Confirm that the board’s upcoming budget is consistent with the authority granted.
2. Identify any declaration cap on annual assessment increases.
3. For Florida condominiums, compute whether the proposed regular assessment (excluding reserves, non-recurring expenses, and betterments) exceeds 115% of the prior year — and prepare for the special-meeting process if it does.
4. For qualifying Florida condominium buildings, confirm that SIRS-component reserve contributions are fully funded in compliance with post-Surfside legislation.
5. Confirm board meeting notice complies with the 48-hour requirement (§ 720.303 for HOAs; § 718.112 for condominiums).
6. Draft a one-page owner communication explaining the increase, the drivers, and any payment options.
7. Record the rationale for the increase in the meeting minutes.
8. If a special assessment is contemplated, confirm the declaration’s vote-threshold requirement before the board votes, and confirm that the notice contains all required content under § 718.116(10) (condominiums) or the applicable declaration and statute provisions (HOAs).

Related CIC-SC Resources

• Operating Fund vs. Reserve Fund — The Critical Distinction
• Reserve Funding Methods — Fully Funded, Threshold, and Percent Funded
• Responding to a Mid-Year Financial Shortfall
• Special Assessment Notice Template
• How to Read and Interpret Your Declaration
• Florida Chapter 718 — Condominium Act Overview for Board Members
• Post-Surfside Reserve Requirements — What Florida Condo Boards Must Know

References & Sources

1. Common Interest Community Standards Council, Fundamentals of Association Management — chapter on Assessment Authority and the Annual Budget Process.
2. Florida Statutes § 718.112(2)(e) — Annual budget adoption, member objection process, and the 115% threshold for condominium associations.
3. Florida Statutes § 718.115 — Common expenses and assessment allocation.
4. Florida Statutes § 718.116 — Assessments, liabilities for nonpayment, and special-assessment notice content.
5. Florida Statutes Chapter 720, including § 720.303 (powers and duties) and § 720.308 (assessments and charges), governing HOAs.
6. Florida SB 4-D (2022) — Post-Surfside legislation establishing mandatory structural integrity reserve study and reserve-funding requirements for qualifying condominium buildings.
7. Florida HB 913 (2025) — Amendments affecting reserve funding, assessment-related disclosures, and budget procedures for condominium and cooperative associations; effective July 1, 2025.
8. AICPA, Audit and Accounting Guide: Common Interest Realty Associations — presentation of assessments, member equity, and special assessments.

Tags: assessment authority · regular assessment · special assessment · annual budget · declaration · 115% threshold · Florida Chapter 718 · Florida Chapter 720 · post-Surfside · SIRS reserves · fiduciary duty

CICSC publishes this article for educational and informational purposes only. It is not legal, tax, accounting, engineering, insurance, or financial advice and does not establish an attorney-client relationship. Statutory references and operational frameworks are intended to support informed governance, not to substitute for advice from qualified legal counsel and other professional advisors familiar with your jurisdiction and your association's facts. CICSC, its authors, and its members assume no liability for actions taken in reliance on this content.