Owners of HOA Property in Florida Face Challenges After Disasters

Owners of HOA Property in Florida Face Challenges After Disasters

When your condo is damaged or destroyed, are you still responsible for HOA fees?
The short answer: Yes, in most cases.

Understanding HOA Fees After a Disaster

Even if your condominium is severely damaged or uninhabitable, homeowners are often still required to pay HOA fees. According to Chad D. Cummings, CEO of Cummings & Cummings Law in Naples, FL, “The general rule in Florida—and most other jurisdictions—is that HOA dues remain owed even if the property is no longer livable due to events like hurricanes or fires.”

This is because HOA fees typically cover shared community expenses such as insurance for common areas, property taxes, and ongoing maintenance. These financial obligations don’t disappear even if an individual property is damaged.

“Those types of expenses will likely continue to come due even if the property has been destroyed,” explains Eric Teusink, managing partner of Williams Teusink in Atlanta.

What Happens If You Don’t Pay HOA Fees?

Florida law permits HOAs to take action against homeowners who fail to pay their dues. This can include filing liens or even pursuing foreclosure after proper notice is given. Additionally, late fees, interest, and administrative penalties may be applied to unpaid balances.

While such actions are legal, they may face public backlash, particularly in disaster scenarios. Teusink notes, “HOAs have a moral duty to work with homeowners affected by disasters, and legal counsel should encourage them to consider leniency in such cases.”

HOAs vs. CDDs in Florida: What’s the Difference?

Florida communities commonly feature both Homeowners Associations (HOAs) and Community Development Districts (CDDs). While both manage community operations, they serve distinct purposes.

HOA Overview

An HOA is an organization that establishes community rules and oversees shared amenities. Membership is typically required, and fees are used for:

• Landscaping and lawn care
• Water, trash collection, and shared utilities
• Maintenance of common areas like pools and clubhouses
• Insurance and property taxes for community property

HOAs may also charge special assessments for unexpected expenses, such as roof repairs or emergency fixes after a storm.

CDD Overview

A Community Development District (CDD) is a government-authorized district that funds large-scale infrastructure projects, such as roads, utilities, and community amenities.

Unlike HOA fees, CDD fees are included in your annual property tax bill and are often tax-deductible.

• Example: The Villages in Florida, one of the fastest-growing communities in the U.S., is a CDD. Residents pay fees to fund amenities and infrastructure like parks, golf courses, and public services.

Is Living in an HOA or CDD Better?

Choosing between an HOA or a CDD community in Florida depends on your priorities:

• HOAs: Best for those who prefer structured rules, well-maintained neighborhoods, and steady property values.
• CDDs: Often feature lower home prices due to deferred infrastructure costs but come with higher property taxes and fewer restrictions on how you use your property.

“Some say HOAs stand for ‘hostile environments, ornery neighbors, and anger-infused management,’” jokes Lee Davenport, a real estate coach and fair housing educator. She advises buyers to carefully review HOA rules and regulations before purchasing to avoid surprises.

Meanwhile, CDDs may offer more flexibility, making them a better fit for homeowners who value fewer restrictions over strict oversight.

The Bottom Line

Whether you’re choosing between an HOA or a CDD, it’s essential to research thoroughly. Understanding the financial obligations, rules, and benefits of your community will help you make an informed decision that suits your lifestyle and long-term goals.