Small Unit Owner Seeks Florida Condo to Bill Insurance by Square Foot

Understanding the Limitations of Condominium and HOA Governance

Living in a home governed by a condominium, co-op, or homeowner’s association (HOA) can present unique challenges, especially when it comes to managing shared expenses and responsibilities. Many homeowners find themselves questioning the rules and decisions made by their associations, often wondering what they can and cannot do. Ryan Poliakoff, an attorney and author based in Boca Raton, has addressed several common concerns from residents, offering insight into the legal and practical constraints that associations face.

Addressing Insurance Cost Pro-Rating in Condominiums

One resident, S.B., lives in a condominium with 18 units under one roof. The units vary in size and floor plans, leading S.B. to request a change in how insurance costs are collected. Currently, all units pay the same amount for insurance, regardless of their size. S.B. proposed pro-rating assessments based on square footage, believing this would be fairer given the significant difference in unit sizes. However, the management company and board were uncooperative, suggesting that amending the bylaws would be too costly and complex.

According to Poliakoff, changing the way insurance costs are shared among units is not feasible. The cost of insurance is considered a common expense, typically distributed equally among all units. While governing documents can be amended through owner votes, certain changes require unanimous consent, which is rarely achievable. The Condominium Act states that amendments affecting the proportion of shared expenses must have approval from all owners, making it practically impossible to implement a pro-rated system.

The Debate Over Common Landscaping Fees in HOAs

Another concern comes from M.K., who lives in an HOA with limited common areas. The association recently proposed using a single landscaping company for the entire community, charging all homeowners a fee as a common expense. M.K. and other residents who do not use landscaping services are worried about being forced to pay for something they don’t need.

Poliakoff explains that while recent HOA law amendments prevent associations from restricting property owners from hiring contractors not on a preferred vendor list, this case involves a different scenario. The HOA is considering taking on the responsibility of landscaping for all homes, which raises questions about whether the association has the authority to do so.

The answer depends on the specific language in the governing documents. Some associations may have broad powers to manage maintenance tasks, but others may not. If the board moves forward with this proposal, homeowners should challenge them to provide a legal basis for the decision. If the association cannot justify the move, homeowners may need to seek legal advice to review their covenants and explore their options.

Key Takeaways for Homeowners

For those living in associations, understanding the legal framework and limitations of their governing documents is crucial. While homeowners may believe that certain changes or decisions are reasonable, the reality is often more complex. Associations operate within strict guidelines, and major changes typically require consensus or legal justification.

Homeowners should also be aware of their rights and the potential consequences of proposed changes. Whether it's adjusting insurance costs, implementing new maintenance policies, or altering shared expenses, these decisions can have long-term impacts on the community.

If you have questions about your association's rules or decisions, consulting with a qualified attorney who specializes in real estate or HOA law can provide clarity and guidance. Ultimately, staying informed and proactive is the best way to navigate the complexities of association governance.