I own a rental property that had a special assessment for a building rehab. If I took out a loan for a downpayment on the assessment due, can I claim this as an expense?

I should note, this assessment is not for updating appliances or normal wear and tear. It's a complete reconstruction of the building exterior due to faulty work done by the original contractor (poor weatherproofing).

Investors & landlords

 The cost of the assessment is not a deduction. It is an improvement that adds to your cost basis and is depreciated over 27.5 years,  The same as if you made similar improvements to a freestanding house. 

The interest on the loan is a deductible expense, but the principal payments are not.