One of the new laws taking effect July 1 seeks to reduce the power of homeowner associations (HOA).
People in traditional neighborhoods may not realize the extent HOAs have taken over since their inception about 40 years ago. There are 48,940 HOAs in Florida and about 9.65 million people live in HOA communities.
Typically, an HOA is connected to a Community Development District. The district uses tax-free debt for construction of the neighborhood and each homeowner helps pay off that debt through annual assessments. Separate HOA fees are used to maintain the neighborhood.
While both CDD fees and HOA dues are used to maintain community amenities, CDD fees also go towards paying off the community’s development debt. This isn’t the case with HOA dues.
CDDs have governmental authority, giving them the power to issue tax-exempt bonds to finance community infrastructure, a power that HOAs do not possess.
CDD fees usually are linked to property taxes as a separate line item on your property tax bill, while HOA dues are typically paid annually directly.
The largest collection of CDDs is The Villages in Central Florida.
There are 22 CDDs in Jacksonville. Each of them probably has an HOA.
Some HOAs seek to control every aspect of living in the neighborhood, right down to dictating what type of grass you may have in your yard. Those who favor such control say having an HOA helps maintain higher property values.
New laws change some rules surrounding homeowners’ associations.
HOAs must provide a physical or digital copy of their rules and covenants to each of its members by Oct. 1 — as well as to all new members going forward. In addition, the law requires HOAs to provide members with a copy of its rules whenever they are updated.
The new law allows homeowners to make changes to their homes interior and spaces not viewable from the street, which some HOA rules now prohibit.
It also prohibits HOA rules about parking ub driveways, or those that require removing garbage cans from sight immediately.
Another law allows more latitude for homeowners to fly flags. One Jacksonville veteran had a legal battle with an HOA over that issue.
HOAs are mini-cities and they can produce orderly, well-maintained neighborhoods but when control freaks are in charge they can make life more difficult for homeowners, especially those in retirement communities.
