You see a home you love in North Palm Beach, then the listing mentions an HOA, COA, or POA. It is easy to feel unsure about what that means for your budget, your freedom to renovate, and your insurance. If you plan to buy or sell along the Palm Beach coastline, understanding these terms protects your time and money. In this guide, you will learn how each association type works, what dues usually cover, what to ask for in due diligence, and how coastal risks shape costs. Let’s dive in.
HOA, COA, and POA explained
In Palm Beach County, you are likely to see three common association types. Each one comes with its own structure, budgets, and rules.
How each form of ownership works
- Condominium association (COA). You own your unit’s interior space and share ownership of common elements like roofs, exterior walls, and amenities. The COA manages building exteriors and shared areas, collects assessments, and carries master insurance for common property. Florida’s Condominium Act provides the legal framework for COAs under the Florida Condominium Act (Chapter 718).
- Homeowners association (HOA). You own your home and the lot, while the HOA maintains shared neighborhood spaces like gates, landscaping, and private roads. Owners typically insure and maintain their own structures. Florida’s HOA law is set by the Florida HOA statute (Chapter 720).
- Property owners association (POA). In Florida, a POA often acts as a master association that oversees a larger development. You may have a master POA plus a sub‑association, such as a condo building or a neighborhood HOA, each with its own fees and rules.
Master and sub‑associations
Layered governance is common across Palm Beach County. A master association can manage communitywide items like gates, lakes, or a golf clubhouse, while a sub‑association handles building or neighborhood upkeep. You may pay dues at more than one level.
What dues pay for
Association dues vary widely in our coastal market. In general, your assessments may cover:
- Landscaping, private road maintenance, pools, and clubhouses
- Utilities for common areas such as irrigation and exterior lighting
- Exterior building maintenance in condos, including roofs and elevators
- Insurance for association property, scope depends on association type
- Management, legal, accounting, and administrative costs
- Security, gate operations, and amenity upkeep
- Contributions to reserve funds for future major repairs
Dues can be charged monthly, quarterly, or annually. Some communities use a flat rate per home, while others scale dues by square footage or a unit’s legal entitlement.
Reserves, projects, and special assessments
Reserve funds are the savings accounts that help pay for big-ticket items like roofs, pavement, and elevators. A professional reserve study estimates useful life and replacement cost so the board can budget responsibly. Best practices from the CAI guidance on reserve studies call for regular studies and transparent reporting. When reserves are underfunded, boards often turn to special assessments or association loans to cover capital projects. Before you buy, ask about any planned projects or recent special assessments, since they can impact affordability and financing.
Insurance on the coast
Insurance works differently in condos than in single‑family HOAs, and coastal risk adds another layer.
- Condos. The COA typically carries a master property policy for the building’s structure and common elements. You will usually carry an HO‑6 policy for interior finishes, personal property, and liability. The master policy’s coverage form determines who pays for what after a loss.
- Single‑family HOAs. The association insures common spaces, while you insure your home’s structure with an HO‑3 or HO‑5 policy.
In North Palm Beach, hurricane and wind exposure can raise premiums and increase windstorm deductibles. Flood risk is also a factor. Lenders often require flood insurance in certain FEMA zones, and association coverage does not cover your personal contents. Use the FEMA flood maps for Palm Beach County to understand a property’s flood zone. For market and consumer information, visit the Florida Office of Insurance Regulation resources. If private coverage is not available, some owners rely on Citizens Property Insurance, Florida’s insurer of last resort.
Rules, approvals, and the ownership experience
Every association operates under recorded documents and adopted rules. These govern your day‑to‑day experience and should be reviewed early.
- Key documents to request. Declaration or CC&Rs, bylaws, rules and regulations, architectural guidelines, and any amendments. Review recent meeting minutes to spot disputes or upcoming projects.
- Architectural approvals. Exterior changes such as paint, shutters, driveways, landscaping, or pools often require prior approval from an architectural review committee. In condos, interior work that affects structure or building systems can require approval as well.
- Leasing and short‑term rentals. Many associations set minimum lease terms, cap the percentage of rented units, or restrict stays under 30 days. Municipal rules can apply too. Check Town of North Palm Beach ordinances and permits in addition to association policies.
Florida law outlines board powers, record keeping, and due process for fines and enforcement. HOAs and COAs draw authority from their governing documents and Chapters 720 and 718 of the Florida Statutes.
Buyer due diligence checklist
The most buyer‑friendly deals start with complete information. Use this list before you make an offer and during escrow.
Before you write an offer
- Identify the association type. Confirm whether the property belongs to a COA, an HOA, and any master POA. Clarify all layers of dues.
- Ask about assessments and projects. Request a summary of current assessments, potential capital projects, or planned repairs.
- Confirm lender requirements. If you plan FHA or VA financing, verify eligibility and insurance acceptability early.
During escrow
- Review governing documents. Read the declaration, bylaws, rules and regulations, and amendments.
- Study the numbers. Review the current budget, most recent financial review, and any reserve study.
- Read the minutes. Request 12 to 24 months of board and membership meeting minutes to surface disputes or upcoming costs.
- Verify insurance. Obtain certificates for the association’s master policy, including windstorm and flood details, and note deductibles.
- Check for legal issues. Request information about active litigation, recent code notices, or regulatory matters.
- Confirm rights and logistics. Verify parking and storage, rental rules, occupancy limits, and architectural submission requirements.
- Ask for the estoppel or resale statement. It should show assessment amounts, delinquencies, special assessments, and other fees as required under Florida HOA statute (Chapter 720) or the Florida Condominium Act (Chapter 718).
Red flags to investigate
- Low reserves paired with visible deferred maintenance
- Recent or frequent special assessments or rapid dues increases
- Significant open litigation involving the association
- High assessment delinquency rates
- Rental rules that conflict with your intended use
For public records and recorded documents, you can search parcel and ownership records and review recorded association documents when available.
Seller checklist
A smooth closing starts with complete, accurate documents.
- Order the estoppel or resale certificate as early as possible so you do not delay underwriting.
- Clear known violations and settle fines that could hold up closing.
- Confirm the association’s payoff, transfer, and closing procedures.
- Deliver required disclosures and governing documents within the timelines set by Florida statutes and your association.
Layered associations in Palm Beach County
In master‑planned communities, a master POA may handle gates, club roads, lakes, or shared security, while sub‑associations handle building exteriors or neighborhood landscaping. As a buyer, identify every association that applies, the scope of each, and the total combined dues. Ask which amenities the master maintains and what the sub‑association maintains to avoid surprises.
Seasonal ownership and market rhythm
North Palm Beach has a large seasonal owner base. Seasonal occupancy can influence meeting quorums, rental demand, and how associations schedule projects. If you plan to rent, study both association rules and local codes. If you plan to split time between homes, ask how board notices, annual meetings, and voting work for owners who are away.
Smart questions to ask
- What exactly does the association cover, and where do my personal insurance and maintenance begin?
- Are any major projects planned, and how will they be funded?
- What are the rules around leasing, guest stays, pets, and parking, and do they align with my plans?
Work with a trusted local advisor
Choosing between a condo tower with full services, a gated single‑family enclave, or a layered master‑planned community comes down to lifestyle, risk, and cost. With the right guidance, you can focus on the property that fits your goals while avoiding costly surprises in the fine print. For a confidential conversation about your options in North Palm Beach and across Palm Beach County, connect with Donna Hutchins for clear, concierge‑level representation.
FAQs
What is the difference between an HOA, a COA, and a POA in North Palm Beach?
- A COA governs condo buildings where you own your unit and share common elements, an HOA governs neighborhoods where you own the lot and home, and a POA often serves as a master association over multiple communities.
How do condo association dues differ from HOA dues in Palm Beach County?
- Condo dues commonly include exterior building maintenance and a master property policy, while HOA dues focus on shared areas and you insure and maintain your own home.
What should I review before buying a condo in North Palm Beach?
- Request governing documents, budgets, reserve studies, meeting minutes, insurance certificates, estoppel statements, and disclosures about projects or litigation.
How do hurricanes and flood zones affect association insurance locally?
- Coastal risk can increase premiums and wind deductibles, and many properties require flood insurance based on FEMA zones; the association’s policy usually does not cover your personal contents.
Are short‑term rentals allowed in North Palm Beach communities?
- Rules vary by association and can include minimum lease terms or caps, and you should also check Town of North Palm Beach ordinances for local requirements.
What is a special assessment, and how can I spot one early?
- A special assessment is an extra charge for capital needs when reserves fall short; you can spot risk by reviewing reserve health, minutes, budgets, and planned projects.
