A quiet townhome community in Feather Sound, Florida, is facing a tumultuous situation. Residents of the Villas of Carillon are reeling after their Homeowners Association (HOA) board announced a $60,000 special assessment. This unexpected news came as a shock, particularly considering the HOA’s reserves had never been fully funded during the community’s 20-year history. The looming financial burden, estimated at $60,000 per household, threatened to leave residents facing severe financial hardship, including potential sales, liens, and even foreclosures.
The special assessment arose from a pressing need to address depleted reserves. Following the tragic Surfside condo collapse in 2021, which highlighted the importance of robust building maintenance, Florida tightened building inspection regulations. Condo associations across the state have been increasing fees to build up reserves for essential repairs. However, the Villas at Carillon, a two-story complex, is not subject to the new state laws requiring regular reserve studies and annual contributions, which only apply to buildings three stories or taller.
The now-defunct HOA board argued that insurance companies would likely refuse coverage without sufficient reserves, particularly due to aging roofs requiring replacement. This prompted the steep assessment, aimed at bolstering the reserves to ensure future maintenance and avoid potential insurance issues.
Despite the HOA’s reasoning, some residents remain unconvinced about the necessity of such a substantial assessment. Patricia Staebler, a seasoned reserve specialist, emphasized that special assessments can be avoided if project costs are planned over time. She stressed the importance of building reserves gradually through annual increases spread out over several years, rather than requiring immediate 100% funding.
The situation has left residents in a state of uncertainty and frustration. The entire HOA board resigned after the vote on the assessment was tabled indefinitely, leaving residents scrambling to understand the financial situation and find a solution. They are demanding transparency and a thorough review of the financials to determine the rationale behind the hefty special assessment.
This incident highlights the challenges faced by condo associations in Florida as they navigate new regulations and prioritize building maintenance in the wake of the Surfside tragedy. It also underscores the importance of proactive reserve management, emphasizing the need for transparent communication and collaborative decision-making between HOA boards and residents to avoid unexpected financial burdens.
