What Is an HOA (Homeowners Association)?

Short answer

An HOA (homeowners association) is the corporation that runs a community's shared areas and rules and charges owners dues, and mortgage lenders add those monthly dues to your housing payment when they figure your debt-to-income ratio. In Florida, single-family and townhome HOAs fall under Chapter 720, while condominium associations fall under Chapter 718; both must issue an estoppel certificate within 10 business days, capped at $250 when the account is current (as of November 2026).

Definition

A nonprofit corporation, run by an elected board of owners, that maintains common areas, enforces the community's recorded covenants and collects dues and special assessments. Owning a home in the community makes you a member automatically.

Worked example

Example only, not a quote: a buyer in Doral earns $9,000 a month. The townhome's principal, interest, taxes and insurance come to $3,100, and the HOA is $350 a month. The lender's housing payment is $3,450, or 38.3% of income, before car or card payments are added. Without the HOA it would be 34.4%. That $350 also has a buying-power cost: it takes room in the DTI that could otherwise support a larger loan.

Chapter 720 HOA vs Chapter 718 condo association

• Chapter 720 HOA: F.S. 720.301 defines it as a Florida corporation that runs a community governed by a declaration of covenants. You own your lot and house; the HOA owns and maintains common areas like gates, pools and clubhouses.
• Chapter 718 condo association: you own the unit's interior air space plus a share of the building and grounds. The association insures and maintains the structure, so dues are often higher and include reserves for the roof, elevators and structural repairs. See SIRS and milestone inspections.
• Lender view: most HOA homes are financed like any house. Condos need a project review, using the condo questionnaire.

How HOA dues affect your loan

Fannie Mae's Selling Guide lists owners association dues, including common-area utilities, and special assessments as part of the monthly housing expense (as of November 2026). Lenders take the amount from the HOA's statement or the estoppel. Dues are not escrowed with your mortgage; you pay the association directly. Rates vary daily; call 305-425-1990 for today's pricing.

In South Florida

South Florida is full of HOA and condo communities, and the statute that applies changes what you see at closing. Under F.S. 720.30851 (HOAs) and 718.116 (condos), the estoppel certificate shows dues owed and is valid 30 days if delivered electronically, 35 days by mail. The base fee cap is $250, plus $100 to rush it in 3 business days and up to $150 more if the account is delinquent. A condo buyer is jointly liable with the seller for unpaid assessments, which is why the title company collects the estoppel before closing. Condos also face lender building reviews; see condo loans in Florida.