If you own or plan to purchase property in a Florida community with shared amenities or common spaces, chances are you’ll deal with either a homeowners’ association (HOA) or a condominium association (COA). While both manage shared interests, the two are quite different—legally, structurally, and financially.
Understanding the differences is key for homeowners, board members, real estate agents, and investors.
The Legal Framework
In Florida, HOAs and COAs are governed by different laws:
- COAs fall under Chapter 718 of the Florida Statutes (Florida Condominium Act).
- HOAs are regulated by Chapter 720 (Homeowners’ Association Act).
Each chapter contains specific rules on meetings, budgets, elections, recordkeeping, and dispute resolution. It’s critical to know which statute governs your community.
Ownership Structure
- In a COA, you own the airspace inside your unit and an undivided share of the common elements (roof, elevators, pool, etc.).
- In an HOA, you typically own both the land and the building (single-family home or townhouse), and the association owns the common areas separately.
This distinction affects maintenance obligations, insurance coverage, and how assessments are calculated.
Common Area Maintenance
- COAs often cover most exterior maintenance (for example, roof, painting, landscaping) as part of the association budget.
- HOAs generally shift more of the maintenance burden to the homeowner, with the association handling only shared areas like clubhouses, entry gates, or private roads.
Assessments and Budgeting
Both types of associations collect assessments, but the budgeting process differs:
- COAs are typically more centralized, with higher monthly dues covering shared utilities, insurance, and maintenance.
- HOAs may have lower monthly dues but impose special assessments or require individual homeowners to handle repairs.
Florida law requires each to maintain financial transparency:
- Annual budgets
- Reserve accounts (mandatory for condos)
- Access to financial records
Board of Directors & Governance
- Both types elect a board of directors to oversee operations, manage finances, and enforce rules.
- COAs boards have more legal responsibilities and state oversight (for example, they must file annual reports and may be subject to DBPR investigations).
Regulation and Oversight
- COAs are regulated by the Florida Department of Business and Professional Regulation (DBPR).
- HOAs are generally self-governed, with fewer reporting requirements unless there is a formal complaint.
Dispute Resolution
- COA owners can bring disputes before the DBPR for arbitration.
- HOA disputes typically go through mediation or litigation.
Rules and Restrictions
Both HOAs and COAs can enforce restrictions on:
- Leasing
- Parking
- Pets
- Architectural modifications
However, the declaration of covenants (HOAs) or condo declarations and bylaws (COAs) determine how strictly these rules can be applied and what procedures must be followed.
Strang Tryson’s Take
Whether you’re a buyer reviewing documents before closing or a board member unsure of your obligations, it’s essential to understand what kind of association governs your community.
Our firm provides legal counsel to homeowners, associations, developers, and investors on everything from document interpretation to rule enforcement. Knowing your rights—and your responsibilities—can help prevent disputes and preserve property value.
