Many buyers assume special assessments only happen in older condo buildings.
The logic seems reasonable: everything is new, so what could go wrong?
But the truth is more nuanced.
While special assessments are far more common in aging buildings, they can still occur in new construction—just usually for very different reasons. Understanding why they happen, when they’re most likely, and how to reduce the risk is an important part of buying smart.
What Is a Special Assessment?
A special assessment is a one-time charge imposed by a condo association to cover expenses that exceed the regular operating budget or reserves.
Unlike monthly HOA fees, assessments are:
- Unplanned
- Time-bound
- Charged per unit (often based on square footage or unit type)
They are typically used to fund:
- Major repairs
- Capital improvements
- Unexpected shortfalls
Are Special Assessments Common in New Buildings?
Short answer: They’re uncommon—but not impossible.
In the first few years of a new building, the structure, systems, and amenities are typically under warranty and require minimal maintenance. That said, assessments can still happen if certain conditions arise.
The key difference is why they happen.
Why Special Assessments Can Occur in New Construction
1. Underestimated HOA Budgets
Developers create the initial HOA budget before the building is fully operational. Sometimes, real-world costs turn out higher than projected.
Examples:
- Staffing costs (security, concierge, maintenance)
- Utilities
- Insurance premiums
- Amenity operating expenses
If expenses exceed the budget and reserves are thin, the association may vote on an assessment.
2. Insurance Cost Increases
Insurance is one of the most volatile line items in Florida.
Even new buildings can face:
- Higher-than-expected master policy premiums
- Changes in flood or wind coverage requirements
When premiums jump mid-year, associations may need a short-term assessment to cover the gap.
3. Developer-Controlled Period Transitions
In the early years, developers often control the HOA. When control turns over to owners, the board may uncover:
- Deferred expenses
- Inadequate reserve funding
- Operating costs that were subsidized during sell-out
This transition period is one of the highest-risk moments for unexpected assessments even in new buildings.
4. Construction Defects or Warranty Gaps
Most new condos come with warranties, but not all issues are covered equally.
If:
- A repair falls outside warranty scope
- A defect requires immediate action
- Legal action is pending or delayed
The association may need upfront funds while pursuing recovery.
5. Amenity Upgrades or Enhancements
Occasionally, owners vote for improvements not included in the original scope:
- Technology upgrades
- Additional security systems
- Enhanced common areas
These are usually elective assessments, not emergency ones.
How New-Build Assessments Differ From Older Buildings
| New Construction | Older Buildings |
|---|---|
| Rare in early years | Common |
| Usually smaller | Often significant |
| Often budget-related | Often structural |
| Short-term | Can be recurring |
This distinction matters. A $1,500 one-time assessment in year two is very different from a $40,000 structural assessment in a 30-year-old tower.
How Buyers Can Reduce Assessment Risk
Before buying new construction, review:
- The initial HOA budget
- Reserve funding assumptions
- Insurance projections
- Developer track record
- Timing of HOA turnover
Strong developers tend to:
- Overfund early budgets
- Smooth the transition period
- Communicate clearly with buyers
Weak developers often do the opposite.
Are Special Assessments a Dealbreaker?
Not necessarily.
The real question isn’t “Can it happen?”
It’s “How likely is it—and how big could it be?”
In most well-built, well-managed new buildings:
- Assessments are rare
- Amounts are manageable
- Risk decreases over time
Understanding the context is far more important than assuming “new” means “risk-free.”
Bottom Line
Yes—special assessments can happen in new buildings.
But when they do, they’re typically:
- Smaller
- Shorter-term
- Operational rather than structural
For buyers, the goal isn’t to eliminate risk entirely—it’s to understand where risk comes from and how to manage it.
With proper due diligence, new construction remains one of the lowest-risk ownership profiles in the condo market.