Is There a Cap on HOA Fees in Florida?

Does Florida law limit how much your HOA fees can increase?

Florida law does not impose a universal percentage ceiling on regular assessment increases for Chapter 720 HOAs. Whether your particular HOA can raise assessments depends on its governing documents and whether the board follows the required process.

The assessments are the amounts you pay toward association expenses. Under Florida Statutes sections 720.303 and 720.308, the association must prepare an annual budget, and your share of expenses must follow the governing documents.

Your recorded declaration, bylaws, or other governing documents may contain an increase limit or require owner approval. No statewide cap does not mean unlimited board authority. Ask the association to identify the provisions that control increases rather than relying on the current payment amount alone.

What the annual budget tells you

Florida Statutes section 720.303 requires an annual budget showing estimated revenues and expenses. The association must provide members with a copy or notice that the budget is available.

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Under section 720.308, assessments under the annual budget or a special assessment must reflect each member’s proportional share of expenses as described in the governing document. In plain language, the documents determine how association expenses are divided among owners.

Read the budget alongside those documents. The budget shows the planned revenues and expenses; the documents tell you whether an increase limit or owner-approval requirement applies.

Special assessments have separate requirements

There is no general statewide dollar cap on HOA special assessments. Governing documents may impose additional limits or approval requirements, and statutory procedures still apply.

Florida Statutes section 720.303 requires at least 14 days’ notice for a meeting at which a special assessment will be considered. Under section 720.315, before turnover, a developer-controlled board may not levy a special assessment unless the required parcel-owner approval is obtained.

If a special assessment is being discussed while you are considering a purchase, ask the association for the meeting notice and the governing-document provisions that control approval. Do not assume that the absence of a statewide dollar cap settles whether the assessment is allowed.

The 115% rule is for condominiums – not ordinary HOAs

The often-mentioned 115% rule is not a general cap on Chapter 720 HOA fees. It applies to Florida condominium associations under Florida Statutes section 718.112.

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For condominiums, when the proposed annual assessment budget exceeds 115% of the prior year’s assessments, after the statute’s exclusions, the board must also propose a substitute budget without discretionary expenditures. Unit owners must consider and may adopt that substitute budget. The calculation excludes specified required reserves, specified nonannual repair, maintenance and replacement expenses, and insurance premiums. Separate restrictions apply while the developer controls the board.

For an owner-controlled condominium, that is a budget process, not an automatic prohibition on the increase; the separate developer-controlled restriction must also be considered when applicable. Confirm whether the property you are considering is governed by condominium rules or Chapter 720 HOA rules before applying either standard.

Before committing to a purchase, have a Florida real estate attorney review the HOA’s governing documents for assessment-increase limits and owner-approval requirements.

About the Author

I’m Michael Renick — a Florida West Coast broker with over 15 years guiding families through some of the biggest decisions of their lives. I’ve built my practice on hard work, honesty, and total transparency. No shortcuts, no spin — just straight answers, deep market knowledge, and the dedication my clients deserve from start to close.

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Equal Housing Opportunity. This article is general information only, not legal, tax, insurance, or financial advice. Market conditions, insurance requirements, and costs vary by property and transaction; confirm your specific situation with the appropriate licensed professional. Michael Renick, Licensed Florida Real Estate Broker, License #BK3241900, licensed by the Florida Department of Business and Professional Regulation (DBPR). Mangrove Realty Associates Inc — each office is independently owned and operated.

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