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

Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Delaware-licensed professional.

Related guide

Delaware special assessments — the full guide →

This page answers what to do right now. For how special assessments works in Delaware — the law, the process, and what to check before you buy or sell — read the full state guide.

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ElevatedSpecial assessment risk

“The board approved a $15,000-per-unit special assessment for façade repairs, payable over 12 months.”

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