Delaware • Special assessment notice
Special assessment from your Delaware condo — what does DUCIOA allow?
Delaware modernized its community-association law with DUCIOA, which mandates funded reserves but gives boards broad assessment power — and at the Sussex beaches, insurance deductibles are a growing assessment driver.
The short answer
Under Delaware's DUCIOA the board can levy a special assessment at any time for unexpected costs unless the declaration sets a higher bar, and the annual budget passes unless a majority of all owners reject it. Reserves must be funded to the study, and New Castle County now requires structural inspections. CondoSignal reads your notice against Title 25. Free.Delaware at a glance
Owner vote
Per declaration
Board may levy; budget passes by negative option.
Reserves
Funded to study
5/10/15% floor without a current study.
NCC inspections
Required
Façade/structure, Ordinance 23-094.
Super-lien
6 mo (regular)
Specials excluded (§ 81-316).
Board authority and the negative-option budget
Under DUCIOA (25 Del. C. ch. 81), the board can levy a special assessment at any time for unexpected expenses, subject to any higher threshold in the declaration — there's no statutory cap. The annual budget passes by 'negative option' (§ 81-324): it takes effect unless a majority of all owners affirmatively reject it, which rarely happens. So owner control over assessments is limited.
Funded reserves
DUCIOA requires condos and co-ops to fund reserves to the study's level, with a fallback floor of 5%, 10%, or 15% of budget by number of major systems if there's no current study. That's stronger than most states — but pure HOAs have a weaker mandate, so confirm which applies to you.
New Castle County inspections
In unincorporated New Castle County, Ordinance 23-094 now requires façade and load-bearing-structure inspections (initial deadline July 31, 2025), and corrective findings translate into special assessments. Elsewhere in Delaware there's no such mandate. The resale certificate (5-day cancellation) discloses unpaid specials and the reserve study.
Your rights in Delaware
Delaware owners get a resale certificate disclosing unpaid specials and the reserve study with a 5-day cancellation right (§ 81-409), and can reject the annual budget by a majority of all owners (§ 81-324). None of this is legal advice — confirm against Title 25 and Delaware counsel.
What to check
- Confirm whether DUCIOA or the older Unit Property Act governs your building.
- Compare reserve funding to the study (or the 5/10/15% floor).
- For unincorporated New Castle County, confirm the inspection report.
- Read the resale certificate for unpaid special assessments.
- At the Sussex beaches, check the wind/hail deductible.
- Note the budget passes unless a majority reject it.
Sources
- 25 Del. C. § 81-316 — super-priority lien(High)
- 25 Del. C. § 81-409 — resale certificate(High)
- New Castle County Ordinance 23-094 — inspections(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Delaware-licensed professional.
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