Condo (Ch. 718) vs residential HOA (Ch. 720)
| Criterion | Condo (F.S. §718) | Residential HOA (F.S. §720) |
|---|---|---|
| Property type | Unit in vertical building (tower, low-rise, mid-rise) or attached | Single-family home or townhouse in planned subdivision |
| Physical ownership | Interior unit only; exterior walls, roof, structure = common elements | Home + lot in fee simple; HOA manages subdivision common areas only |
| Typical fees | $500–$1,500/mo (depends on building age, services) | $100–$500/mo |
| Founding document | Declaration of Condominium | Declaration of Covenants, Conditions & Restrictions (CC&R) |
| Statute | F.S. §718 (Condominium Act) | F.S. §720 (Homeowners' Association Act) |
| Mandatory reserves | Yes (SB 4-D, no waiver for 3+ stories since 2025) | Optional (member-votable) |
| Milestone inspection | Required (3+ stories, 30 yrs) | Not applicable |
What condo fees typically cover
- Roof and waterproofing (membrane, parapets).
- Exterior facade: paint, caulking, balconies.
- General plumbing up to the unit (drains, risers).
- Common electrical (corridors, elevator shafts).
- Elevators: maintenance, certifications.
- Security: guards, video surveillance, access control.
- Landscaping: lawn, shrubs, irrigation.
- Pool, spa, gym, clubhouse: maintenance, chemicals, equipment.
- Master insurance: building policy covering everything except unit interior (separate HO-6 policy).
- Reserves (since 2025, mandatory: see SB 4-D article).
- Administration fees: licensed CAM manager, accountant, attorney.
- Water, sewer, garbage at some associations (often included, verify).
- Cable/internet at some buildings (rare in 2026, often dropped).
What condo fees do NOT cover
- Unit interior: paint, floors, appliances, furniture — owner's HO-6 insurance.
- Mortgage and property tax — paid separately by owner.
- Damage caused by owner negligence (faucet leak from unit damaging neighbor below, etc.).
- Personal upgrades (kitchen, bathroom remodels).
- Hurricane deductible on the master policy (often 5-10% of value, billed back to units via assessment).
What residential HOA fees cover
- Internal subdivision streets and lighting.
- Perimeter landscaping and gated entry (if applicable).
- Clubhouse, community pool, park: maintenance and activities.
- Community security (entrance guards, patrols).
- Management: CAM manager or volunteer.
- Master insurance on common areas only (not the homeowner's house).
The home itself remains entirely the owner's responsibility (roof, paint, front lawn if part of the lot).
CDD: Community Development District (in addition to HOA)
Many modern planned communities (The Villages, Lakewood Ranch, Babcock Ranch) have both an HOA and a CDD. The CDD (F.S. Chapter 190) is a special governmental entity that finances infrastructure (main streets, water, sewer) via:
- Bond debt assessment on the annual property tax bill (often $1,000–$3,000/yr, lasting 25-30 years until amortized).
- Operating & Maintenance assessment annually (CDD asset upkeep).
The CDD shows under "non-ad valorem assessments" on the Tax Collector's tax bill. Often confused with HOA fees but it's distinct.
Annual increases and caps
- An HOA board can typically raise annual fees per the CC&R, sometimes capped at 10-15% per year without member vote.
- A condo board can adopt the annual budget without unit vote if the increase stays < 115% of prior budget (F.S. §718.112(2)(e)). Above that, vote required.
- With the new SB 4-D requirements (100% reserve funding mandatory since 2025), many FL condos saw fees rise 30–100% in 2024–2025.
For Canadian owners: implications
- HOA/condo fees due whether you live on-site or not. No automatic snowbird discount.
- Typical payment in USD, by check/ACH/portal. Many associations require automatic ACH.
- HOA/condo fees deductible against rental income reported to IRS (Form 1040-NR Schedule E or via Canada-US treaty).
- Not deductible on personal second home (non-rented) on US side; CRA may treat as expenses on worldwide income depending on situation.
- Verify short-term rental restrictions before buying (see HOA rules article).
Formulaires officiels et pages de référence
Responsabilité du lecteur
Toujours utiliser la dernière version disponible sur le site officiel cité ci-dessous. Les seuils, taux et délais évoluent. CanadaFlorida ne se substitue pas à un professionnel licencié.
Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.
Sources and references
Public sources verified as of the last review date (Florida Statutes, Florida Department of Revenue, Citizens, FEMA, DBPR).
- F.S. Chapter 718 — Condominium Act. leg.state.fl.us/§718
- F.S. Chapter 720 — Homeowners' Association Act. leg.state.fl.us/§720
- F.S. §718.112(2)(e) — Budget adoption. §718.112
- F.S. Chapter 190 — Community Development Districts. leg.state.fl.us/§190
- DBPR — Condos & HOAs Division. myfloridalicense.com/condos