A new law regarding HOA restrictions, recently signed by Florida Governor Ron DeSantis, could cost Florida homeowners $60,000 per household.
This very situation has occurred in a community in Feather Sound, located in Pinellas County.
Why Were HOAs Created?
Some people feel that HOAs do more harm than good, but they were created with the intention of benefitting homeowners, rather than hurting them financially.
They were created to maintain standards, uniformity and a sense of community and would only collect payment to improve common areas, services, and the general neighborhood.
HOAs vs. Homeowners
Many HOAs have argued that homeowners agreed to the conditions they now complain about when they purchased their homes.
Others have argued that many are happy enough under their HOA and have no complaints. However, many more have issues with their HOA, so something needs to be done.
An HOA Letter Shocks Florida Community
One month ago, this Feather Sound community was shocked when they received a letter from their HOA saying that they would have to pay for a special assessment that would cost up to $60,000 per home.
This request was last minute, and the letter explained that it would need to be handled and paid by October.
The Assessment Is Required
Many homeowners’ main issue is that this assessment is a requirement. But the struggle to raise funds isn’t the only issue.
Florida is currently in the middle of hurricane season, and residents are trying to prepare their homes for it. They are struggling to do both of these things within a short time.
Allowing Hurricane Hardening
DeSantis introduced a new law to allow homeowners to harden their homes against hurricanes.
Previously, HOAs were able to prevent homeowners from doing this. However, as Florida is often hit by hurricanes, many homeowners felt this was needed.
An Underfunded HOA
The letter further explained that the HOA hadn’t had a fully funded reserve in more than 20 years. As a result, the association — and the homeowners — were now faced with a “significant financial challenge moving forward.”
Homeowners were absolutely stunned by this letter, as it insinuated that all families would have to pay $60,000 apiece.
Homeowners Left Stunned
Many homeowners immediately started talking to their neighbors after receiving this letter, as they truly couldn’t believe it.
Tammy Rodeffer, one homeowner in this community, said, “I was in shock, I immediately started texting other neighbors.”
Why Homeowners Would Have to Pay
According to the HOA, homeowners have to pay this whopping amount because of improvements that need to be made, according to new Florida requirements and laws.
“The Association is now at a critical point with respect to capital improvement projects requiring community-wide balcony repairs, waterproofing, garage flat roof replacement and painting,” the letter said.
Options Available
The association gave options to the homeowners on how they could pay for this assessment plan. They can pay $60,000 in four quarterly installments, beginning on October 1.
They can pay this amount in 32 installments over 8 years, at $1,875 per payment. They could pay $11,650 in 4 installments quarterly, or they could increase their HOA dues from $575 a month to $1,200 a month for the next 8 years.
People Could Lose Their Homes
Many homeowners have panicked after receiving this letter, as many don’t have the thousands of extra dollars needed to pay what the HOA is asking for.
Rodeffer said, “There will be a lot of people that lose their home. Either they have to sell or they can’t make these payments. They’ll have a lien put on their house, foreclosures. I’m concerned about the overall community.”
Residents Are Living Out of Cars
The situation in Florida has become so bad that some people are being forced to live out of their cars as they can no longer afford to live in their homes.
This is all due to the rising cost of homeownership in the Sunshine State, with the new rise in HOA fees not helping matters.
Fees Raised by Condo HOAs
In addition to this $60,000, condo HOAs have raised their fees to help with maintenance and repairs throughout the year.
This is causing even more financial struggles for Florida’s condo residents, who now have to consider selling up as they cannot afford it.
Millions Forced Out of Their Homes
Florida residents believe this new law will force millions of homeowners out of their homes as they cannot afford the $60,000.
It is causing homeowners increasing worry, to the point that many want to leave the Sunshine State in favor of somewhere much cheaper.
Florida’s ‘Nightmare’ Housing Market
Florida’s housing market is currently experiencing what has been described as a “nightmare” situation.
There are many reasons for this, including high house and insurance prices. However, another reason buyers are backing out of house sales is the new law raising HOA costs.
New State Laws Have Caused This
It appears this sudden bill has been caused by a new Florida law that DeSantis passed after the Surfside collapse, which saw many people killed after a condo fell apart.
This law, combined with rising insurance costs, has made many COAs struggle to have the required reserves on hand.
HOAs vs COAs
Many homeowners of this Florida community have pointed out that they don’t have COAs — they are only under an HOA in their neighborhood.
HOAs, so far, do not have the same legal requirements that COAs do when it comes to the percentage of reserves that must be on hand at all times. Thus, confusion has run rampant in this community.
Homeowners Association Board Resigns
The situation has become so bad that an entire Homeowner’s Association board in the Villas of Carillon decided to resign after facing questions from residents.
This came just days after the association held a meeting with condo-building residents. Residents asked for the problem to be solved, claiming many would be forced out of their homes if they had to pay.
The Money Wasn’t Needed
The issue with the Villas of Carillon HOA was that they are not classed as condos. The Florida reforms only apply to buildings three or more stories high.
These villas are just two stories high. However, the HOA claims it needs this money to pay insurance companies. It claims it runs the risk of insurance companies not insuring the complex if there were no reserves to pay for new roofs.
The Previous Board’s Mistake
According to the HOA, the mistake with the reserves was made by the previous board, and the current board is now trying to rectify those mistakes.
The board also blamed the community, saying that they were too complacent about “allowing volunteer board members to act on their behalf with little interest or attention from the community on long-term financial preparedness for major capital expenses.”
Transparency Is Needed
Many of these Floridians have since come out to state that they need more transparency about what exactly is going on.
Homeowners are aware that these buildings are getting older and that new laws are requiring maintenance to be kept up on these homes. However, they also believe there should be another way to handle this issue.
Lack of Insurance
The HOA has also claimed that insurance companies will not insure the homes in this neighborhood in the next few years if the maintenance is not done.
For example, new roofs need to be put on these homes. If they aren’t, then insurance companies may refuse to cover the area — something that has been increasingly seen in Florida, especially in areas that are hit hard by hurricanes and natural disasters.
HB 1203
Ron DeSantis signed HB 1203 in early 2024, hoping that it would help address petty issues raised by HOAs.
Some of these issues often lead to late fees, legal fees and property liens. The plan is to completely reform previous laws in the hope that it will benefit homeowners and HOAs.
Confusion Remains
So far, it appears many homeowners — and even the HOAs — may be suffering from confusion, thanks to the recent state reform laws that have been passed since the Surfside disaster.
These laws were made to keep another tragedy from happening. However, these laws may be harming Floridian homeowners in financial ways.
