New Florida HOA law in effect. What's the difference between an HOA and a COA?

A new law that went into effect Monday strictly limits how much control your Florida homeowners association has over what you do with your home, where you can park and how much you can be fined, among other things.

Does this apply if you live in a condo?

The law, HB 1203, Homeowners' Association, was one of nearly 180 new Florida laws that went into effect on July 1.

Homeowners associations (HOAs) and condominium associations (COAs) are very similar, but there are differences. And what is a POA, anyway?

What is a HOA?

A homeowner's association or HOA is an organization that manages a gated community, single-family residential neighborhood or townhouse community and protects property values with various rules and regulations.

The board of an HOA, elected by its members, creates and enforces community-wide aesthetic standards to make sure everyone's architecture, paint colors, landscaping, fencing materials, upkeep and decorations are consistent and pleasing. HOAs also enforce parking restrictions, noise complaint policies, pets, home occupancy limits, vacation rentals and more to create a more comfortable living experience for the residents and their neighbors.

HOAs are also responsible for maintaining common areas such as playgrounds, pools, parks and clubhouses. It charges fees to be used for the maintenance of the community.

Membership is often mandatory when you purchase the home. Failure to keep up on your membership fees or pay any fines for cited violations may result in bans from common areas, liens on your property and even foreclosure.

While many homeowners appreciate the appearance and atmosphere of living in an HOA-run community, many have complained about harassment, petty and arbitrary rules, excessive fines and hard-to-reach board members or management companies.

How much are HOA membership dues in Florida?

In 2024, average HOA fees in Florida run from $100 to $350 monthly, according to Florida Realty Marketplace, but can jump up to $400 to $800 for higher-income communities or to fund projects such as swimming pools or clubhouses. HOA fees have been rising due to inflation and skyrocketing insurance premiums.

What is a COA?

Condominium associations (COAs) are often called HOAs for condos and they perform many of the same functions. But property ownership is different and membership fees are usually higher.

"In an HOA, residents own their property, but the association owns and maintains common areas, such as lobbies, pools, clubhouses, and gyms," said HOA management service Associa. "Conversely, in a COA, owners own their individual units and a percentage of all shared property, like tennis courts, pickleball courts, sidewalks, and parking lots."

COA membership is mandatory and fees cover maintenance and services for areas everyone uses such as lobbies, elevators, stairwells, parking garages, roofs and more. Some fees may cover utilities. Unlike HOA memberships, COAs may charge members different amounts depending on their percentage of ownership.

The new law, HB 1203, Homeowners' Association, applies only to HOAs in Florida. But in some respects, it brought HOA restrictions in line with existing COA statutes. For example, as of Monday HOAs may not levy fines of more than $100 a day or $1,000 in aggregate for any violation, which was already the limit for COAs under Florida law.

How much are COA membership dues in Florida?

COA membership fees tend to be higher than HOA fees, as the Washington Post reported, but you tend to get more service for your money. Average COA fees in Florida generally ran around $350-400 a month, depending on the number of shared spaces and amenities.

However, COA fees have surged hundreds of dollars more a month in some areas due to astronomical property insurance rate hikes, hurricane damage, inflation, and the passage of SB 4-D, a bill that requires condominium and cooperative association buildings that are three stories or taller to undergo milestone structural inspections with new requirements, reserve funds to pay for future long-term maintenance costs and more.

What is a POA?

A POA is a property owners' association. Where HOAs and COAs govern small neighborhoods and individual buildings, POAs are formed to oversee and encourage development or protect underdeveloped areas in a historic district, specific areas or even entire cities. POAs can influence local policy, plan projects, handle business licensing, implement zoning restrictions and even organize community events.

Members can include residents and business owners or anyone who owns or manages property in the area. Membership may be voluntary or mandatory, depending on the POA, and also charges annual dues. If you live in an HOA or COA that's within the jurisdiction of a POA, you'll have to pay dues to both organizations.

This article originally appeared on The Daytona Beach News-Journal: New Florida law reins in HOAs. Does it apply to condo associations?