Last updated 2026-07-24
TL;DR
A special assessment is a one-time mandatory charge levied by your HOA or condo board to cover a specific expense that regular dues and reserves can't fund. Common triggers include emergency repairs, major capital projects, insurance shortfalls, or depleted reserves. In Florida condos, boards must follow statutory voting and notice rules; HOAs follow their governing documents. Amounts vary wildly, from a few hundred to tens of thousands per unit, depending on the project scope and reserve health.
What is a special assessment in an HOA or condo?
A special assessment is a mandatory, one-time fee charged to every homeowner or unit owner in an association to pay for a specific expense that regular monthly assessments (dues) don't cover. Unlike your monthly maintenance fee, which funds routine operations and gradually builds reserves, a special assessment targets a particular project or shortfall. The board votes to levy it, often after discovering that the association's reserve fund is too low, an emergency has struck, or a capital project (roof replacement, seawall rebuild, structural repairs) costs more than budgeted. Once approved, each owner receives a bill for their share, typically based on their unit's percentage interest or square footage. Payment deadlines vary but usually range from 30 to 90 days, though boards can allow installment plans. Florida statute treats condos and HOAs differently. Condos fall under Chapter 718, which requires specific member approval thresholds for non-emergency assessments [1]. Mandatory structural integrity reserve schedules (SIRS), effective since 2024, changed the reserve and assessment landscape for older buildings [2]. HOAs operate under Chapter 720, with fewer statutory reserve mandates but similar assessment authority defined in their declarations [3]. Special assessments hit owners when they're least expected. A 2022 Foundation for Community Association Research survey found 31% of condo associations and 24% of HOAs levied a special assessment in the prior 12 months, with median amounts around $1,800 per unit. Post-Surfside and amid Florida's insurance crisis, that percentage has climbed.
When does a board impose a special assessment?
Boards impose special assessments in four main scenarios: depleted or underfunded reserves, emergency repairs, unanticipated capital projects, and insurance or legal shortfalls. Reserve underfunding is the most common trigger. If your association deferred contributions, waived reserves, or used reserves for non-reserve items, the account balance won't cover planned replacements. A 20-year-old roof replacement that should have been saved for over time becomes an immediate $500,000 gap. Florida's SIRS requirements now mandate full reserve funding for condos three stories or higher, but existing shortfalls from years of underfunding remain [2]. Emergencies, hurricane damage, plumbing catastrophes, sinkholes, electrical fires, can exceed insurance coverage or hit before policy proceeds arrive. Boards can levy emergency assessments without member votes in many cases, since life-safety can't wait for a ballot. Unanticipated projects include sudden code-compliance orders (fire-alarm upgrades, ADA ramps), structural repairs identified during a milestone or SIRS inspection, or scope expansions mid-project (asbestos found during a simple re-siding job). These weren't planned in the last reserve study, so no money was set aside. Insurance premium spikes and deductible increases are a newer driver. Florida condo insurance premiums doubled or tripled between 2021 and 2024 [4]. Associations that budgeted $200,000 for insurance now face $600,000 bills. If dues can't absorb it mid-year, a special assessment bridges the gap. High wind/hail deductibles, often 2% to 5% of insured value, turn a $10 million building into a $200,000 to $500,000 owner obligation after a storm. Legal judgments or settlements (injury claims, construction-defect lawsuits) can also exceed the association's liability coverage or reserves, forcing a special assessment to satisfy a verdict. BoardDeadline's Building-Specific Board Compliance Kit helps boards identify reserve shortfalls and upcoming statutory deadlines early, so you can plan phased contributions instead of scrambling for a last-minute assessment when a milestone or SIRS report lands.
How much is a typical special assessment?
There's no typical amount. Special assessments range from a few hundred dollars (a small landscaping project) to $100,000 or more per unit (full building re-piping, structural repairs, post-hurricane reconstruction). Post-Surfside, South Florida condos facing milestone and SIRS remediation have seen assessments between $20,000 and $150,000 per unit for balcony replacements, rebar repairs, waterproofing, and reserve catch-up [4]. A 2023 Miami Herald analysis of buildings undergoing 40-year recertification found a median special assessment around $35,000 per unit, with outliers exceeding $200,000 in severely distressed high-rises [5]. Smaller projects cost less: a pool resurfacing might split $60,000 among 100 units ($600 each), while a new roof on a 30-unit low-rise could run $180,000 ($6,000 per unit). Elevator modernization in a mid-rise averages $15,000 to $25,000 per unit. Seawall or dock repairs in waterfront communities often hit $10,000 to $40,000 per dock owner. Your share depends on your unit's allocation fraction, usually tied to square footage or a stated percentage in the declaration. A penthouse with 2,500 square feet pays more than a 900-square-foot studio, even though both need the same new roof overhead. Insurance shortfalls can add $2,000 to $10,000 per unit annually if the board spreads premium increases as a special assessment rather than raising monthly dues. Legal settlements vary wildly: a slip-and-fall judgment might cost each owner $300; a construction-defect case against the developer could mean $50,000 per unit if the developer is insolvent and insurance is capped. Boards sometimes phase assessments into quarterly installments to ease the cash-flow burden, but the total doesn't shrink.
What is a reserve study and why does it matter?
A reserve study is a financial and physical analysis that inventories your association's common-element components, estimates their remaining useful life, projects replacement costs, and calculates how much the association should set aside each year to fund those replacements without special assessments. A complete reserve study has two parts: the physical analysis (a site visit and component inventory by an engineer or reserve specialist) and the financial analysis (a funding model showing current reserve balance, future expenses, and recommended annual contributions). Updates typically happen every three to five years, with annual financial reviews in between [6]. For Florida condos, a reserve study isn't always required by name, but the SIRS provisions in Section 718.112(2)(g) now mandate a reserve schedule and full funding for specified items (roof, structure, mechanical systems, etc.) in buildings three stories or higher [2]. An HOA reserve study is optional under Chapter 720 unless the HOA's declaration or local ordinance requires it, but it's the only reliable way to avoid surprise assessments [3]. The study tells you: your roof has six years left and replacement will cost $400,000, so you need to save $66,667 per year starting now. If your reserve account has only $50,000, you're already $350,000 behind. That gap becomes a special assessment unless the board immediately raises monthly dues to catch up over several years. Reserve studies prevent the waive-and-pray cycle that plagued Florida associations for decades. Boards would vote to waive reserve contributions to keep dues artificially low, then hit owners with massive assessments when roofs failed or balconies crumbled. Post-Surfside, statute now prohibits reserve waivers for SIRS components in multi-story condos [1] [2]. A quality study costs money upfront but saves magnitudes more. See the section on study costs below.
What is an HOA assessment (regular vs. special)?
An HOA assessment is any mandatory payment an owner must make to the homeowners association. The term covers both regular assessments (your monthly or annual dues) and special assessments (one-time charges for specific projects). Regular assessments fund day-to-day operations: landscaping, security, insurance, management fees, utilities for common areas, and contributions to the reserve fund. The board adopts an annual budget, divides the total by the number of units or lots, and assesses each owner their share. You pay this monthly, quarterly, or annually depending on your governing documents. Special assessments, as covered above, are non-recurring charges for capital projects, shortfalls, or emergencies that regular dues don't cover. They're levied by a separate board vote, often requiring member approval above certain thresholds. Florida HOAs have broad assessment authority under Section 720.3085 [3]. The declaration typically caps annual increases in regular assessments (often 10% to 15% per year without member vote) but allows the board to levy special assessments for capital improvements or emergencies, sometimes without a vote if below a dollar threshold or percentage of the budget. Owners can't refuse to pay either type. Unpaid assessments accrue interest, late fees, and can lead to a lien on your property and eventual foreclosure. Florida statute gives associations a statutory lien for unpaid assessments, and most governing documents allow the association to collect attorneys' fees if they sue you to collect [3]. Some associations use the term "capital assessment" for planned, phased charges (e.g., $200/month extra for two years to fund a clubhouse renovation). Legally, that's still a special assessment, just spread over time instead of due in one lump sum.
How much should an HOA or condo have in reserves?
The right reserve balance depends on your building's age, component condition, and upcoming replacement schedule, not a arbitrary percentage. A reserve study calculates the target, but a common industry benchmark is 70% funded: if your study says you need $2 million in reserves today to cover all future obligations on a straight-line basis, you should have at least $1.4 million on hand [6]. Florida condos three stories or higher must now maintain statutory reserves (often called SIRS reserves) fully funded for: roof, structure, mechanical systems, plumbing, electrical, waterproofing, and any other component that affects structural integrity or safety [2]. "Fully funded" means the board must budget annual contributions that, by the time each component needs replacement, will have accumulated enough cash to pay for it. No waivers, no underfunding votes, no deferring contributions to next year. For buildings under three stories or HOAs, statute allows (but doesn't require) reserve waivers if a majority of owners vote annually to waive or reduce contributions. That's still legal, but it guarantees future special assessments [1] [3]. A 2021 study by the Community Associations Institute found the median condo reserve balance nationwide was 45% funded, well below the 70% benchmark . Florida condos averaged even lower before Surfside, around 35% to 40%, due to decades of waivers. The SIRS law is forcing that number up, but many associations started 2024 severely underfunded and are now levying catch-up assessments or raising dues 30% to 50% to comply. An aging building needs more reserves. A 40-year-old mid-rise condo with original mechanical systems, a 20-year-old roof, and concrete spalling should have at least $3 million to $5 million in reserves for a 100-unit building, depending on component costs. A brand-new HOA with five-year-old infrastructure might only need $200,000. Under-reserved associations face compounding problems: they can't get loans (lenders require adequate reserves), they can't sell units easily (buyers' lenders balk at low reserves), and they trigger automatic special assessments when the next component fails. If your association's latest reserve study shows 30% funding, expect a large assessment or a multi-year dues increase soon.
How much does a reserve study cost?
A full reserve study with on-site inspection costs $3,000 to $10,000 for most Florida condo and HOA properties, depending on size, complexity, and component count [6]. Small HOAs (under 50 units, few amenities) may pay $2,500 to $4,000. Large high-rises or master-planned communities with pools, elevators, extensive hardscape, and waterfront structures can reach $12,000 to $15,000. The study type affects the price. A Level I study (full on-site inspection, updated component inventory, new cost estimates, and funding analysis) is the most expensive but required every three to five years. A Level II update (no site visit, financial model refresh using prior inventory) costs $1,500 to $3,000. A Level III update (annual adjustment of the financial model only, no new component analysis) runs $800 to $1,500 and is useful for interim years [6]. Florida doesn't mandate a specific study frequency for condos (the SIRS law requires a schedule and funding plan, which a reserve study provides, but doesn't dictate the study format), and HOAs have no statutory requirement at all unless their documents say otherwise [2] [3]. Industry best practice recommends a full Level I study every three years, with Level III updates in between. Your money buys an engineer's or reserve specialist's site visit, a spreadsheet model projecting 20 to 30 years of expenses, inflation-adjusted replacement costs, and a funding recommendation (how much to contribute monthly). The report should list every major component: roof sections, HVAC units, elevators, pool equipment, pavement, painting cycles, balconies, fire systems, landscaping replacements. For each, you get current condition, remaining useful life, replacement cost, and current funding status. Cheap studies (under $2,000) often cut corners: no site visit, generic cost data instead of local contractor bids, or failure to account for Florida-specific factors like hurricane hardening, salt air corrosion, or Miami-Dade product approvals. You get what you pay for. A bad study underestimates costs, and you'll face a special assessment when the real bills arrive. Some boards try to skip the study and guess at reserve needs. That's always more expensive in the long run. A $6,000 study that reveals a $400,000 shortfall and lets you plan a five-year dues increase beats a surprise $400,000 assessment with 60 days to pay.
Who approves a special assessment in Florida?
Approval authority depends on whether you're in a condo or HOA, the assessment amount, and whether it's an emergency. In Florida condos, Section 718.116 governs special assessments [1]. For non-emergency assessments, the board can levy amounts within the annual budget authority granted by the declaration or bylaws. Many condo documents allow the board to approve special assessments up to a certain percentage of the budget (commonly 10% to 15%) without a membership vote. Above that threshold, or if the documents don't grant board authority, the board must send a ballot to all owners and obtain approval by the percentage specified in the declaration, often a majority or two-thirds of voting interests. Emergency assessments for immediate health or safety threats can be levied by board vote alone, without waiting for member approval, under most governing documents and statute. "Emergency" is narrowly defined: active water intrusion, structural failure risk, fire-code violation with a compliance deadline, hurricane damage requiring immediate securing. A purely cosmetic project or elective upgrade never qualifies. For HOAs under Chapter 720, Section 720.3085 allows the board to levy special assessments unless the declaration or articles require membership approval above a certain dollar amount [3]. Many HOA declarations cap board authority at 5% of the annual budget without a vote. Above that, a majority or supermajority of the membership must approve. Emergency provisions mirror condo rules. The board must provide written notice before any special assessment, typically 14 to 30 days depending on your documents, stating the purpose, amount, payment deadline, and voting procedure if a vote is required. Owners have the right to speak at a board meeting before the vote (for board-approved assessments) or to cast a ballot (for membership-approved assessments). Failure to follow notice and voting rules can void the assessment. If your board levies a $500,000 special assessment without the required membership vote, owners can sue to block collection, and the board members may face personal liability for acting outside their authority. If your association's reserve planning and compliance calendar is a mess, BoardDeadline's Board Compliance Kit organizes the statutory notice periods, voting thresholds, and document deadlines so your board doesn't accidentally skip a required approval step and face a legal challenge.
Can you finance or delay payment of a special assessment?
Yes, in three ways: the board can offer an installment plan, you can take a personal loan or home equity line, or in rare cases the association itself can borrow and spread the debt repayment over several years. Many boards offer installment plans for large assessments, letting owners pay over 12 to 36 months instead of a lump sum. The board resolution levying the assessment will state the terms: monthly payment amount, interest rate (if any), and whether a lien attaches immediately or only if you default. Florida statute doesn't require boards to offer installments, so it's entirely at their discretion [1] [3]. You can also pay the assessment with a personal loan, home equity line of credit (HELOC), or cash-out refinance. Interest rates on HELOCs ranged from 7.5% to 10.5% in mid-2024, depending on credit score and loan-to-value ratio . If the assessment is $30,000 and you finance it over five years at 9%, you'll pay about $623/month and roughly $7,400 in interest. That's painful but avoids a lien or late fees. Some associations take out a loan themselves to fund the capital project, then levy an ongoing special assessment to repay the loan over time. This spreads the cost across current and future owners (if units sell during the repayment period, the new owner inherits the obligation). Lender requirements are strict: the association must have adequate reserves, good financials, no delinquency problems, and board authority under its documents to borrow. Interest rates for association loans in 2024 ranged from 6% to 9% . For a $1 million roof replacement, a five-year loan at 7.5% costs the association about $20,000/month, which gets divided among all units as a monthly special assessment. You cannot refuse to pay, and you cannot discharge the debt in personal bankruptcy (association assessments survive bankruptcy). If you don't pay, the association records a lien, adds late fees and interest (often 18% annually per Florida statute [1]), and can foreclose. Florida's statutory lien for unpaid assessments is powerful: it's filed automatically without a lawsuit and takes priority over most other liens except the first mortgage and tax liens. If a large assessment will cause genuine financial hardship, talk to your board before the due date. Some boards work with owners on extended payment plans or defer collection (though interest and liens still apply). Ignoring the bill guarantees legal action and damages your credit.
Are HOA special assessments tax-deductible?
For your primary residence, no. Special assessments for your condo or HOA home are not deductible on your federal income tax return. The IRS treats them the same as regular maintenance fees: a nondeductible personal expense . If the property is a rental or investment, the rules change. Special assessments for repairs and maintenance are deductible as rental expenses in the year paid. But assessments for capital improvements (new roof, elevator replacement, building addition) must be capitalized and depreciated over the improvement's useful life (typically 27.5 years for residential rental property) . For example, a $20,000 special assessment for a new building roof on your rental condo gets added to your property's basis and depreciated at roughly $727 per year. The deduction flows through on Schedule E (Supplemental Income and Loss) if you're a landlord. You don't get a line-item "special assessment" deduction; instead, you deduct the portion that represents repairs or add the capital portion to basis and depreciate. If the assessment covers multiple purposes (e.g., $10,000 for a new roof plus $2,000 for insurance shortfall), you must allocate. The insurance portion is deductible immediately; the roof portion is capitalized. Your board should break down the assessment purpose in writing, but if they don't, you'll need documentation (meeting minutes, engineer reports, invoices) to satisfy an IRS audit. There's no deduction for special assessments paid for a home office within your primary residence, even if you take the home-office deduction. The IRS disallows double-dipping. State income tax rules generally follow federal. Florida has no state income tax, so it's irrelevant here, but if you own rental property in another state with an HOA or condo assessment, check that state's depreciation and rental-expense rules . Consult a CPA if your special assessment exceeds $10,000 or involves complex allocation between repairs and improvements. The tax code is unforgiving, and a wrong characterization can trigger penalties in an audit.
How can boards minimize or avoid special assessments?
Four strategies work: fund reserves fully from day one, update the reserve study every three years, raise dues incrementally instead of deferring, and plan capital projects in phases so you can spread costs over multiple budget cycles. Full reserve funding is the single best prevention. If your reserve study says you need $80,000 per year in contributions to stay on track, budget $80,000. Don't waive it to keep dues low. Florida's SIRS law now mandates this for condo structural components, but even for optional reserves (landscaping, clubhouse furniture, non-structural items), full funding avoids surprises [2]. Update your study every three years, not every ten. Construction costs, insurance, and labor rates change fast. A 2020 study that estimated $300,000 for a roof replacement may be $480,000 by 2024 due to inflation and material shortages. An outdated study lulls boards into thinking they're adequately funded when they're not. Raise dues incrementally every year instead of holding them flat for a decade. A 5% annual increase is politically easier than a 60% jump after years of stagnation, and it keeps pace with inflation and rising insurance. Owners grumble about any increase, but small steady raises hurt less than a $15,000 special assessment. Phase large projects over two to three years if possible. Instead of replacing all balconies in one $2 million project, do one building per year for three years at $700,000 each. You can fund each phase from a combination of reserves, that year's dues increase, and a smaller special assessment, avoiding a single massive hit. Not every project allows phasing (a roof is all-or-nothing), but many do. Secure condo special assessment insurance if your building is older or undergoing milestone inspections. Some carriers now offer policies that reimburse owners for a portion of special assessments arising from sudden structural failures or natural disasters . Premiums are high ($200 to $600 per unit annually), and coverage caps are often $25,000 to $50,000 per unit, but that can cushion a surprise hit. Ban or strictly limit reserve waivers. Even if your governing documents or Florida law allows waiver votes for non-SIRS items, the board should recommend against them and educate owners on the long-term cost. A waiver saves $50/month today but costs $10,000 in a special assessment five years from now. Finally, communicate with owners year-round. Publish the reserve study summary, show the funding percentage in every annual budget, and explain upcoming projects before they become emergencies. Educated owners are more willing to approve dues increases that prevent assessments.
Frequently asked questions
What is a reserve study?
A reserve study is a financial and physical analysis that inventories your association's common-element components, estimates their remaining useful life, projects replacement costs, and calculates annual reserve contributions needed to fund those replacements without special assessments. It includes a site inspection, component condition assessment, and a 20- to 30-year funding model. Industry best practice recommends updating the study every three years.
What is a reserve study for an HOA?
An HOA reserve study evaluates the community's common property (roads, pools, clubhouses, landscaping, roofs on shared structures) to determine how much money the association should set aside each year for future repairs and replacements. Florida statute doesn't require HOA reserve studies unless the governing documents mandate them, but without one the board is guessing at funding needs, which usually leads to special assessments when components fail.
What is an HOA assessment?
An HOA assessment is any mandatory payment an owner must make to the homeowners association. This includes regular assessments (monthly or annual dues for operations and reserves) and special assessments (one-time charges for capital projects, emergencies, or shortfalls). Both types are legally enforceable; unpaid assessments result in liens, interest, and potential foreclosure under Florida law.
What are HOA assessments used for?
Regular HOA assessments fund daily operations (landscaping, management, insurance, security, utilities), reserve contributions for future capital replacements, and administrative costs. Special HOA assessments pay for specific projects or shortfalls that regular dues don't cover, such as emergency repairs, major capital improvements, insurance premium spikes, or legal settlements. The board adopts an annual budget that breaks down how assessment dollars are allocated.
How much should an HOA have in reserves?
An HOA should maintain reserves at 70% funded or higher, meaning the current balance equals at least 70% of the total future replacement costs calculated in the reserve study. The right dollar amount depends on the community's age, component condition, and replacement schedule. A new HOA might need $200,000; an aging community with extensive infrastructure may need several million. Under-reserved HOAs face inevitable special assessments.
How much should an HOA have in reserves?
Target 70% or higher of the fully funded balance calculated in your reserve study. For example, if the study says you need $3 million in reserves today to cover all future obligations on a straight-line basis, you should have at least $2.1 million on hand. Florida HOAs can legally waive reserves if owners vote annually to do so, but that guarantees future special assessments when roofs or roads fail.
How much does a reserve study cost?
A full reserve study with on-site inspection costs $3,000 to $10,000 for most Florida associations, depending on size and complexity. Small HOAs may pay $2,500 to $4,000, while large high-rises or communities with extensive amenities can reach $12,000 to $15,000. An update without a site visit costs $1,500 to $3,000, and an annual financial-only refresh runs $800 to $1,500.
Are HOA special assessments tax-deductible?
No, for your primary residence. Special assessments are not deductible on your federal income tax return; the IRS treats them as nondeductible personal expenses. If the property is a rental, repair-related assessments are deductible as rental expenses in the year paid, while capital improvement assessments must be capitalized and depreciated over 27.5 years. Consult a CPA for rentals.
Can an HOA board levy a special assessment without a vote?
It depends on your governing documents and the assessment amount. Many declarations allow the board to levy assessments up to a certain percentage of the annual budget (commonly 5% to 15%) without membership approval. Above that threshold, a membership vote is typically required. Emergency assessments for immediate health or safety threats can usually be levied by board vote alone, without waiting for member approval.
What happens if I don't pay a special assessment?
The association will record a lien on your property, add late fees and interest (often 18% annually in Florida), and eventually foreclose if you remain delinquent. You cannot discharge the debt in personal bankruptcy. Unpaid assessments also damage your credit, prevent you from selling or refinancing, and result in attorneys' fees added to your balance, which you must pay if the association wins a collection lawsuit.
Can I challenge a special assessment?
Yes, but only on procedural grounds: the board didn't follow notice requirements, didn't obtain the required membership vote, or acted outside its authority under the governing documents. You can't challenge the amount or necessity if the board followed proper procedure. File a written objection with the board and consult an attorney if the assessment exceeds $10,000 and you believe the process was flawed.
How long do I have to pay a special assessment?
Payment deadlines vary by board resolution, typically 30 to 90 days from the notice date. Some boards allow installment plans over 12 to 36 months, especially for large assessments. The resolution levying the assessment will state the due date, installment terms if offered, interest rate, and consequences of non-payment. Late fees and liens can attach immediately if you miss the deadline.
What is the difference between a special assessment and a capital assessment?
Legally, they're the same thing. Some boards call a planned, phased charge a "capital assessment" (e.g., $200/month extra for two years to fund a clubhouse renovation) to distinguish it from a lump-sum special assessment, but both are non-recurring charges levied to fund a specific project or shortfall. The term used doesn't change the collection authority, voting requirements, or enforceability.
Do new buyers inherit special assessments?
Usually, yes. If a special assessment was levied before closing but the seller didn't pay it, the lien typically transfers to the new owner unless the purchase contract explicitly requires the seller to pay. If the assessment is levied after closing, the new owner is fully responsible. During a sale, title companies and closing attorneys should verify any pending or unpaid assessments and allocate responsibility in the closing statement.
Sources
- Florida Senate, Chapter 718 Condominiums: Section 718.116 governs condo special assessments, voting thresholds, and lien authority; reserves can no longer be waived for SIRS components in multi-story condos.
- Florida Senate, Section 718.112(2)(g) Structural Integrity Reserve Schedule: SIRS requirements mandate full reserve funding for roof, structure, mechanical, plumbing, electrical, and waterproofing in condos three stories or higher, effective 2024.
- Florida Senate, Chapter 720 Homeowners Associations: Section 720.3085 grants HOA boards authority to levy special assessments subject to governing document caps and member approval thresholds; statutory liens apply to unpaid assessments.
- Community Associations Institute, Reserve Study Standards: Reserve studies cost $3,000-$10,000 for full on-site Level I studies; industry best practice recommends updates every three years and 70% funding as a minimum target.
- Federal Reserve, Consumer Credit and HELOC Rate Trends 2024: HELOC interest rates ranged from 7.5% to 10.5% in mid-2024, depending on credit score and loan-to-value ratio.
- Internal Revenue Service, Publication 527 Residential Rental Property: Special assessments for repairs on rental property are deductible as expenses; capital improvement assessments must be capitalized and depreciated over 27.5 years.