Community associations popular with homeowners despite proposed law | Opinion

There has been a growing chorus of criticism against community associations in recent years.

Many home and condominium owners who live in South Florida communities with associations have become increasingly frustrated with rising monthly dues, which rank among the highest in the nation, stringent rules, and concerns over transparency and perceived malfeasance.

These frustrations have contributed to proposed state legislation aimed at significantly reshaping how association disputes are handled.

But despite the negativity surrounding fees, enforcement and governance, data from the Foundation for Community Association Research indicates that community associations remain a desirable option and are expected to see significant growth in 2026.

The proposed legislation being considered by Florida lawmakers would substantially change the state’s process for resolving association disputes. House Bill 657, which does not yet have a companion bill in the Florida Senate, would create a state-funded court program for such clashes. At present, disputes regularly adhere to the statutorily required processes of either pre-suit mediation or arbitration proceedings administered by the state’s Department of Business and Professional Regulation.

A notable component of the bill is a process for dissolving homeowner associations. Under the proposal, at least 20 percent of an HOA’s owners would be required to petition for termination. The board would then prepare a termination plan, which must be approved by twothirds of the owners.

If approved, the plan would be submitted either to the new community association court program or to the circuit court in the corresponding judicial district. The court would have 45 days to accept or reject the plan. If it is approved, the board or a court-appointed termination trustee would carry out the dissolution and wind down the association’s affairs in accordance with the plan and applicable law.

The proposed legislation also seeks to mandate that new community associations include language in their governing documents that automatically incorporates changes to applicable state laws. Existing condominium and homeowners associations would be required to hold a meeting of their owner members to conduct a vote requiring majority approval on whether to add such language to their governing documents.

Despite the negative sentiments toward association fees, rules enforcement and perceived or actual malfeasance that has likely spurred this proposed legislation, there continue to be many positives in the outlook for community associations in 2026.

While the housing market is expected to build on the gradual stabilization that began in 2025 and see improvements in inventory, home sales, prices, and mortgage rates, community associations are poised to remain the preferred housing choice for millions of Americans.

The Foundation for Community Association Research projects that between 3,000 to 4,000 new condominium communities and homeowners associations will be developed in 2026, growing the total number of associations in the U.S. from approximately 373,000 at the end of 2025 to as many as 377,000 in 2026, accounting for about one-third of the nation’s housing stock.

The Foundation’s U.S. National and State Statistical Review estimates that nearly 80 million Americans now call community associations home, and the research indicates that developers, planners, and local governments increasingly rely on associations to create housing while supporting infrastructure and service needs.

The organization also forecasts that housing inventory will increase in 2026 due to steady new construction activity and more homeowners listing properties as mortgage-rate pressures ease. It foresees strengthening sales as affordability gradually improves and buyers return to the housing market, which will also benefit from slower inflation and mortgage rates in the mid-5% range by late 2026.

Even with the criticism that receives public attention, overall homeowner satisfaction with community associations remains high. Data from its 2024 Homeowner Satisfaction Survey, which was conducted by Zogby Analytics, reveals that 86% of respondents rate their experience with their community association as either very good, good or neutral. And 82% percent believe their elected governing board serves their community’s best interests, 72% say their property manager provides valuable support, and 87% believe their association’s rules protect or enhance property values.

Community associations continue to cater to those who wish to enjoy active lifestyles with resort-like amenities such as pools, clubhouses, restaurants, fitness centers, sports courts, parks, trails, and others. Owners also have meaningful opportunities to participate in their association’s financial, administrative and managerial matters. Open board meetings provide transparency into association finances and management, allowing owners to stay informed about issues affecting the community. Any eligible owner may run for the board, serve on committees, and contribute to shaping the direction and governance of their association.

While community associations may not be the right fit for everyone, they offer desirable opportunities for many. Even as lawmakers consider reforms and some owners express frustration with costs and compliance, the overall outlook for community associations remains strong as they continue to serve millions of Americans seeking convenience, amenities, and shared governance in their residential communities.

Michael Toback is a shareholder with the South Florida law firm of Siegfried Rivera who focuses on community association law. He is based at the firm’s Coral Gables office and is a regular contributor to its Newsroom blog at www.SiegfriedRivera.com/blog. The firm also maintains offices in Broward and Palm Beach counties, and its 48 attorneys focus on real estate, community association, construction, and insurance law. www.SiegfriedRivera.com, 305-442- 3334, MToback@SiegfriedRivera.com