Differences Between a Condo Association and a Homeowner’s Association
Understanding the differences between each type of association will help future owners of 30A luxury homes to get the most out of their association’s ownership experience, whether they buy condos or single family homes along 30A.
The
major difference between homeowners associations (HOAs) and
condominiums associations revolves around the type of real property
development administered by the association. An HOA governs a
single-family, planned development made up of lots. Each lot is improved
with a separate home. Traditionally, these developments are your
typical suburban neighborhood with stand-alone homes, each with a yard. A
condominium association governs a common structure(s) comprised of
multiple units.
Here are some of the basics of a condo association and a HOA:
Condominium Association
A
condominium is a joint ownership of the building, grounds and common
elements (or areas) while the units are individually owned.
A
condominium is created by record of a declaration of covenants and
restrictions, bylaws, and a condo plat in the municipal land records or
local county.
Although
condo unit owners are empowered to run the condominium, they elect a
Board of Directors to carry out most of the powers and duties of the
condo association.
Common elements in a condominium can be broken down into general common elements (GCEs) and limited common elements (LCEs).
GCEs
are available for use by all unit owners and include lobbies, common
hallways, sidewalks, roofs, elevators, and community facilities
(swimming pools, parking lots, etc.).
LCEs
are parts of the condo that are designated for the exclusive use of
unit owner only such as balconies and patios in a condo.
The
designation of LCEs can be found in the condo association’s declaration
or on the plats. In some cases, the Board of Directors assigns these
designations, as in the case of parking spaces. Common examples of
limited common elements are balconies and patios serving a unit.
Maintenance,
repair, and replacement of the LCEs as well as the unit is the
responsibility of the unit owner to whom the LCEs were designated.
Annual
common expenses of the condominium are determined by the Board of
Directors. Every unit owner is assessed of their share of common
expenses based on their percentage of ownership interest, meaning the
larger the unit, the bigger the unit owner’s proportional share of the
common expense in the condominium.
Homeowner’s Association
An
HOA is comprised of homeowners living in 30A luxury homes, whose
purpose is to ensure maintenance and provision of community facilities
and enforcement of HOA covenants and restrictions.
An
HOA is created by record of a Declaration of Covenants, Conditions and
Restrictions (CC&R) in local land records. Unlike a condo
association, the bylaws of the HOA are not recorded in the land records.
The
Board of Directors are delegated by the HOA’s bylaws. The Board is
responsible for determining the amount of annual association fees,
making and enforcing rules and regulations, architectural guidelines,
and maintaining the common areas.
The
common areas are owned by the HOA, and not the lot owners, through a
common area deed from the original developer or declarant. Common areas
include sidewalks, parking lots, swimming pools, playgrounds, green
space, not included in the lots and other recreation facilities.
Homeowners
are granted a right to use and enjoy the common areas through a grant
of easement included in the CC&R. The right to use common areas may
be suspended for violation of the rules and regulations of the HOA or
for failure to pay HOA fees.
Maintenance, repair and replacement of the common areas are the responsibility of the HOA.
Homeowners
are responsible for the maintenance, repair, and replacement of their
lots which include landscaping within the boundaries of their 30A luxury homes as well as the exterior of their home.
There
are some HOAs who assume the responsibility of maintaining the
landscaping of lots. Any exterior improvements, alterations, or
additions by the owner are subject to approval by the HOA’s
Architectural Review Board (ARB).
Difference between HOA and Condo Association Fees
Due
to the lesser maintenance, repair, replacement, and insurance
obligations, HOA fees are usually lower than comparably sized condos.
Condo
association fees, along the Emerald Coast of Florida, typically
include, maintenance and insurance for the exterior of the building and
all common areas, water, sewer, trash, basic cable and sometimes
internet. These items are not included in HOAs of single-family homes or
townhomes.
Condo fees are paid either monthly or quarterly, whereas HOA fees are typically monthly.
Whether you are planning to buy a condominium unit or a single family home along 30A,
you should be informed of the corresponding association fees, rules,
regulations, and restrictions so you can maximize the benefits of and
enjoy living in your home along 30A. If you need more information about
homes and communities along 30A, visit www.30ALuxuryHomes.com
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