A blog reader recently posed a question containing the following statement:
We are a HOA of 8000 parcels, and we do not have Statutory required membership or developer reserves.
Membership (mandatory or voluntary) in an homeowners association (HOA) is not regulated by Statute. Section 720.301(9), Florida Statutes defines an “homeowners’ association” or “association” subject to the requirements of Chapter 720 as:
… a Florida corporation responsible for the operation of a community or a mobile home subdivision in which the voting membership is made up of parcel owners or their agents, or a combination thereof, and in which membership is a mandatory condition of parcel ownership, and which is authorized to impose assessments that, if unpaid, may become a lien on a parcel. The term “homeowners’ association” does not include a community development district or other similar special taxing district created pursuant to statute.
In the event the association is considered a “homeowners’ association” pursuant to Chapter 720, Florida Statutes and the budget contains reserve accounts (as defined therein), those reserves must be determined, maintained and waived in compliance with the statute. More information is available about governance of homeowners’ associations from Florida Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares and Mobile Homes.Homeowners AssociationReservesStatute