People choose community association living for the amenities, the services, and the protection of property values. Many new owners and first time directors, though, have never been told how an association actually works. Misunderstandings about authority, money, and rules are behind a large share of community disputes. This guide covers the basics.
This article is general information and is not legal advice. The association's attorney should be consulted.
What a Community Association Is
A community association is a corporation formed to operate a residential community, maintain shared property, and enforce the community's covenants and rules. Owners become members automatically when they buy, and they share the cost of operating the community through assessments.
Florida law recognizes three main types:
- Condominiums, governed by Chapter 718 of the Florida Statutes, where each owner holds title to a unit and an undivided share of the common elements
- Cooperatives, governed by Chapter 719, where the association holds title to the property and each owner holds an interest in the association and the right to occupy a unit
- Homeowners associations, governed by Chapter 720, where owners hold title to their own lots and the association typically owns and maintains common areas
Most associations are also not for profit corporations, so Chapter 617 applies as well.
Where an Association's Authority Comes From
An association's powers come from state law and from its governing documents. The main documents are:
- The declaration, which creates the community and contains the covenants and restrictions that run with the property
- The articles of incorporation, which create the corporation
- The bylaws, which describe how the association is governed, including elections, meetings, and officers
- Rules and regulations, which are adopted under the authority of the other documents and address daily matters such as parking, pools, and trash
As a general rule, the statutes control over the documents, and the declaration controls over the lower documents. Federal law, including fair housing law, and local codes also apply. When documents conflict or are unclear, the association's attorney should be asked to interpret them.
How the Board Governs
Owners elect a board of directors to make decisions on their behalf. In both HOAs and condominiums, officers and directors have a fiduciary relationship to the owners, under section 720.303(1) and section 718.111(1)(a). Directors must also complete approved education after they are elected or appointed, under section 720.3033 for HOAs and section 718.112(2)(d) for condominiums.
Board meetings must generally be open to owners, and notice must be posted at least 48 hours in advance. When assessments or certain rule changes about the use of parcels or units will be considered, 14 days' notice is required. Owners have the right to speak at board meetings on designated agenda items, subject to reasonable written rules. More on the board's role is covered in
the role of the board of directors.
Money and Management
The board adopts an annual budget, collects assessments, maintains reserves where required, and contracts with vendors. Associations may be self managed, use a licensed community association manager, or hire a full service management company. The right choice depends on the size of the community and the time the volunteers can give. A description of what a manager typically handles is available in
what tasks community association management companies handle.
Owner Rights and Responsibilities
Owners have rights, including the right to vote, to attend and speak at meetings, and to inspect official records. Written records requests must be answered within 10 business days in an HOA or 10 working days in a condominium. Owners also have responsibilities, including paying assessments on time, following the governing documents, maintaining their own property, and making sure tenants and guests follow the rules.
Before a fine or suspension is imposed, the owner must be given at least 14 days' written notice and an opportunity for a hearing before an independent committee.
Building a Strong Community
The communities that work best tend to share a few habits. Information is shared openly and regularly. Disagreements are handled with civility, at meetings and online. Volunteers are recruited for committees and thanked for their time. Social events give neighbors a chance to know one another outside of business matters. Leaders who invest in these habits usually find that rules are followed more willingly and meetings run more smoothly.
Help for Association Leaders
Board orientation, meeting support, records, and financial management are provided by Condominium Associates for the communities it manages. To talk about your association,
contact us.
