1. Special assessments are additional fees imposed on condominium unit owners, apart from regular annual budget assessments.
2. The business judgment rule protects association board decisions on special assessments, as long as they are made in a reasonable manner.
3. The association’s governing documents and Florida Condominium Act outline the process for passing special assessments, including notification requirements and allowed uses for the funds collected.
4. Excess funds from special assessments can be considered common surplus and may be returned to unit owners or applied as a credit toward future assessments, at the discretion of the association’s board. 1. The court in Cottrell v. Thornton held that unit owners could be assessed for repair costs to protect common elements without their consent.
2. The court in P.S. Farrington v. Casa Solana Condominium Association, Inc. concluded that the condominium documents allowed for a special assessment for immediate or emergency repairs.
3. Condominium boards must exercise good business judgment and consult the condominium documents and the Florida Condominium Act when passing a special assessment.
https://www.jimersonfirm.com/blog/2015/08/condominium-special-assessments-in-florida-understanding-the-business-judgment-rule/
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