What is a slush fund in an HOA context?

In an HOA, a slush fund typically refers to money set aside outside of the regular budget or reserves, often for discretionary or undocumented spending, which can raise compliance concerns.

Are slush funds explicitly illegal under Florida HOA law?

Florida statutes do not mention 'slush funds' by name, but any undocumented or undisclosed funds may violate legal requirements around budgeting, recordkeeping, and financial transparency.

What risks do slush funds pose to HOA boards?

Improperly handled slush funds can lead to legal penalties, loss of board member liability protections, community distrust, and potential homeowner lawsuits.

How can HOAs create flexibility without slush funds?

Boards can include a contingency or miscellaneous line in the approved annual budget, track all spending, and follow documented approval procedures to ensure transparency and legal compliance.

What should new board members do if they discover a slush fund?

They should freeze its use, raise the issue at a public board meeting, document the discussion, and incorporate the funds into official financial accounts to maintain accountability.

Do owners of vacant lots in an HOA have to pay dues?

Yes, owners of vacant lots in HOAs are typically required to pay regular dues, even if the lot is undeveloped.

Can residents use vacant lots for parking or gardening?

No, residents cannot use privately owned vacant lots without written permission from the owner. Unauthorized use could lead to liability issues.

What happens if a vacant lot is not maintained?

If a vacant lot is not maintained, the HOA may issue violation notices and, in some cases, arrange for maintenance and bill the owner.

Can the HOA enforce rules on undeveloped lots?

Yes, if the lot is privately owned and within the HOA, the association can enforce rules as outlined in the governing documents.

What are the financial risks of having unsold or unowned lots in the HOA?

Unsold or unowned lots do not generate assessment income, which can reduce the HOA’s budget and increase dues for other homeowners.

What is the ADA and how does it relate to HOAs?

The Americans with Disabilities Act (ADA) is a federal law that prohibits discrimination against individuals with disabilities. For HOAs, it typically applies to amenities or areas open to the public, such as rental clubhouses or public events.

When does an HOA need to comply with the ADA?

An HOA must comply with the ADA when it operates spaces that are open to the public, such as leasing a clubhouse to outside groups or hosting public events. Private residential areas are usually covered under the Fair Housing Act instead.

What are reasonable disability accommodations in an HOA?

Reasonable accommodations can include things like allowing a wheelchair ramp, permitting service animals, or modifying a pathway. HOAs must consider requests seriously, though accommodations should not cause undue hardship or fundamentally alter operations.

Does the ADA require pool lifts for HOA swimming pools?

Pool lifts may be required if the pool is open to the public. If the pool is used only by residents and their guests, ADA rules may not apply, though accessible features are still encouraged to support inclusivity.

Can an HOA deny a request for a wheelchair ramp?

Generally, no. Under the Fair Housing Act, HOAs must allow reasonable modifications like wheelchair ramps. Denial is only permissible if the request imposes an undue burden or significantly alters the nature of the community.

Legal Compliance Archives - Freedom Community Management

Are Slush Funds In HOA Legal Or Just Overlooked?

RG on July 1, 2025

Some things hide in plain sight. Slush funds in HOA communities might be one of them—and the legality of it all isn’t as cut-and-dried as you’d expect.

What is a Slush Fund?

The phrase “slush fund” tends to carry a strong sense of misconduct. Its connotations aren’t flattering: secret reserves, discretionary spending, and off-the-books maneuvering. Before jumping to conclusions, it helps to understand the basics.

What exactly is a slush fund? In the most neutral sense, it refers to money set aside for unallocated or flexible use. For corporate or political circles, that often spells trouble. In HOAs, though, it may simply refer to funds outside of the regular operating budget or reserves. That might sound harmless, but it all depends on how it’s handled.

Slush Funds in HOA Communities: Convenience or Compliance Risk?

HOA board members play many roles: budget steward, rules enforcer, community diplomat. With all those duties, it’s tempting to create a little cushion. Some boards keep a small reserve for landscaping upgrades. Others stash a little money away for quick vendor payments when approval delays get in the way.

This is where slush funds in HOA governance become murky. Is that discretionary pool legal? Is it documented in the financials? Are homeowners aware of its existence? A “no” to any of those questions may signal a deeper issue.

Most HOA board members aren’t trying to deceive anyone. Good intentions, however, don’t negate the need for transparency or compliance. Residents’ dues demand accountability.

What Florida Law Says

Florida’s HOA laws, primarily Chapter 720 of the Florida Statutes, don’t mention slush funds by name. That’s not surprising since “slush fund” isn’t a formal financial term. Even without direct language, the statutes convey a great deal about financial conduct.

Here’s a quick summary:

720.303(6) requires a clearly defined annual budget with itemized expense categories.
720.303(4) mandates the maintenance of accurate accounting records that are open to resident inspection.
720.303(13) outlines bidding and procurement requirements for expenses over a certain threshold.

These statutes mean that while HOA slush funds aren’t explicitly prohibited, any off-the-books account or discretionary pool lacking proper documentation and approval could violate the law. Boards can easily land in legal trouble if they treat these funds too casually.

The Flexibility Argument

A familiar phrase pops up during budget discussions: “We need some flexibility.” Unexpected expenses happen. Storm damage, plumbing failures, or last-minute repairs can’t always wait for formal board meetings or reserve fund reallocations.

Florida law allows for this, both legally and transparently. HOAs can (and should) create reserve funds for future repair or replacement needs. The annual budget can also include a modest miscellaneous or contingency line item for small, unexpected costs.

Flexibility isn’t the issue; hidden funds are. If a discretionary amount exists, it needs to be tracked, reported, and approved. Homeowners won’t object to careful spending. They will object to secrecy.

When Does It Cross the Line?

Consider this scenario: A homeowner asks where a small landscaping upgrade was funded. If the answer includes phrases like, “It came from our side fund, not in the regular budget,” or, “We’ve always had a little extra in an account only board members know about,” then that’s a red flag.

Any funds collected from dues belong to the association as a whole. Even small, informal practices around slush funds in HOA communities can lead to violations, especially if spending lacks documentation, budget approval, or transparency.

Boards that sidestep procedure risk serious consequences:

Member lawsuits or formal complaints
State-imposed civil penalties
Board members are losing liability protections under Florida law

Those are steep consequences for what often starts as a shortcut.

Why Intent Doesn’t Always Matter

Plenty of boards inherit practices they never thought to question. Some treasurers keep an envelope of petty cash to buy meeting snacks. Others maintain a quiet “board fund” passed down from the last group of volunteers. These aren’t always nefarious acts, as they’re born from tradition or convenience.

Unspoken traditions become entrenched quickly. That doesn’t make them defensible. A well-meaning misstep is still a governance issue when it lacks transparency and proper authorization.

Education and correction go a long way beyond blame. In most cases, boards need better process, not punishment.

Replacing Slush Funds with Transparent Discretion

There’s a better way to meet unexpected needs without crossing lines. A few smart financial strategies can eliminate the temptation to use informal funds while providing boards with the flexibility they desire.

Try the following:

Add a clear miscellaneous line in the annual budget. Label it and cap it.
Document all transactions, no matter how minor.
Define a policy that outlines approval procedures for discretionary expenses.
Avoid cash spending. Instead, use digital payments or checks for a paper trail.
Include the item in financial statements, so it’s visible to residents.

This approach provides boards with the flexibility to act swiftly when necessary, while maintaining legitimacy, clarity, and the support of their governing documents.

What If You Inherit a Slush Fund?

Sometimes, new board members discover strange practices buried in the books or outside of them entirely. A separate account, an informal pool, or a longtime board member’s “emergency stash” might come to light.

Here’s how to handle that situation responsibly:

Freeze further use of the fund until its purpose and origin are clear.
Bring it to the board’s attention at a public meeting and note it in the minutes.
Absorb it into the HOA’s financial framework, such as reserves or an appropriate budget line.
Inform the community that going forward, all association funds will be centralized and tracked.

Handling inherited slush funds transparently sends a powerful message: financial accountability is not negotiable.

When Trust Wears Thin

The bigger issue here isn’t money but trust. Homeowners expect their dues to be managed responsibly and openly. Discovering that funds have been moved, used, or stashed without notice can permanently damage that trust.

Once suspicion takes root, it spreads fast. Board meetings become battlegrounds. Social media channels fill with accusations. Your board ends up defending every decision, regardless of merit.

Florida HOA governance is already complex. Between legal compliance, rising maintenance costs, and increasing scrutiny, boards can’t afford avoidable missteps. A questionable fund, even if well-intentioned, can ignite friction that lasts for years.

Transparency Beats Tradition

HOA boards don’t need to fear flexibility. Secrecy, however, invites trouble. Florida law might not use the term “slush fund,” but it addresses the behaviors and risks associated with them. The real win? Building trust through open communication and transparency.

Freedom Community Management provides HOA management services in Florida. Call us at 904-490-8191 or contact us online to learn more!

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Vacant Lots In HOAs: Legal, Financial, and Aesthetic Considerations

RG on May 27, 2025

Many times, not all of the lots in HOA communities are occupied. And with more vacant lots in HOAs, the more complicated it is for the board to manage.

What are HOA Vacant Lots, Exactly?

When talking about vacant lots in HOAs, there are usually two types to consider.

First are unowned or unsold vacant parcels. These are pieces of land that were never sold during the development phase. They might have been reserved for future development, marked for everyday use, or left untouched.

Second are privately owned vacant lots. These have been purchased but not developed. The owner may be waiting to build, sell, or invest when the time is right.

Each type has different implications in terms of legal responsibility, financial contribution, and appearance.

Legal Considerations: Who’s Responsible for What?

Legal obligations depend on who owns the lot. HOA boards need to know where their authority begins and ends.

For privately owned vacant lots, the rules of the HOA still apply even if no home is built. That means the lot owner is still responsible for paying dues and maintaining the property to community standards.

This includes mowing the grass, removing debris, and addressing dead trees or overgrown areas. If the lot is neglected, the board can issue violation notices and may arrange maintenance at the owner’s expense, depending on the governing documents and state law.

If a lot is still under the developer’s name, the responsibility generally rests with the developer. However, if the ownership is unclear, the board may need legal advice to determine whether the land should be classified as common area or reassigned. Until then, the HOA may have limited power to enforce rules or require upkeep, even if the lot affects the community’s appearance or safety.

Financial Impacts of Vacant Lots in HOA

man using a calculator | vacant lots in hoa

Vacant land can affect the financial health of a community more than some might expect.

When a lot remains unsold, the HOA collects no assessments from it. This reduces revenue and shifts a greater portion of the financial burden onto other homeowners. In small communities, even a few missing lots can strain the budget.

In cases where the lot is owned but the owner delays or avoids paying dues, the association may face ongoing delinquencies. This can lead to increased legal costs and may impact the HOA’s ability to fund necessary maintenance, repairs, or amenities. Delinquencies also affect cash flow and can compel the board to increase dues for other members.

Maintenance is another concern. If the board chooses to maintain neglected vacant lots to protect curb appeal and safety, that cost may come from the HOA’s budget unless it can be recovered later. This might include mowing, clearing debris, or addressing tree hazards.

There is also the matter of liability. If someone gets injured on a vacant lot and there is any confusion about who owns it, the HOA could be pulled into a lawsuit. This risk is higher if residents commonly use the land for activities or parking.

Appearance and Curb Appeal

A vacant lot that is messy or overgrown can detract from the neighborhood’s appearance. In an HOA community where aesthetics play a significant role in attracting buyers and supporting property values, this can be a serious issue.

Boards should work with owners to make sure vacant lots are kept clean and tidy. That includes mowing, trimming vegetation, and keeping the area free of trash or old materials. If fencing is present, it should be in good repair. Empty lots should not become dumping grounds or storage sites.

Even lots that are not visibly neglected may need attention if erosion or invasive plants start to affect neighboring properties. Regular inspections and proactive communication help reduce these risks.

Can the Community use Vacant Lots in the HOA?

Homeowners sometimes see vacant lots as opportunities for practical or recreational use. This might include parking extra vehicles, setting up a garden, or creating a temporary play area. However, using private land this way can lead to problems.

If a vacant lot is privately owned, the board and residents cannot use it without the owner’s permission. Unauthorized use may lead to disputes, liability issues, or property damage. Even casual parking on an empty lot is risky if there is no agreement in place.

Using vacant land as a community garden or shared space may be possible, but only if ownership is clear and proper agreements are in place. For lots owned by the HOA or designated as common areas, the board can consider formal plans for community use. For other parcels, written agreements, legal review, and insurance considerations are all necessary.

Some lots might be suitable for future amenities, such as walking paths or green spaces, but any long-term plan should begin with confirming ownership and understanding the legal framework.

Strategies for Managing Vacant Lots in HOA

To handle vacant lots effectively, boards should stay organized and proactive. Here are some tips:

Keep detailed records showing who owns each lot, when assessments are billed, and whether any payments are overdue.
Maintain regular communication with the lot owners. Friendly reminders can go a long way toward encouraging upkeep and timely dues payments.
Create clear standards for lot appearance. Apply the same enforcement process used for built properties, including written notices and fines if necessary.
Review your governing documents. You should also make sure they allow the board to enforce standards on undeveloped lots. If not, consider proposing amendments.
If the board plans to acquire or convert lots for shared use, work with legal counsel to ensure a smooth process.
Monitor lots for safety concerns and document any actions taken by the board. This helps reduce liability in the event of disputes that may arise later.
Additionally, consider partnering with landscape professionals for seasonal clean-ups or routine maintenance on neglected lots.

Turning Empty Lots Into Community Assets

Vacant lots in HOAs do not have to be a liability. With good records, fair enforcement, and a clear strategy, the board can minimize financial risk and maintain the neighborhood’s appearance. In some cases, those empty parcels could even become the foundation for future amenities that benefit the entire community.

Looking for help in managing vacant lots in your Florida community? Freedom Community Management provides HOA management services in Florida. Call us at 904-490-8191 or contact us online to learn more!

HOA ADA Compliance: What Boards Should Know

RG on April 21, 2025

Understanding ADA compliance isn’t always easy for HOA boards. But if your community has shared spaces or receives accommodation requests from residents with disabilities, it’s something you can’t afford to overlook. Knowing when federal accessibility laws apply can help your board support residents fairly while staying in line with the law.

What Is the ADA and When Does It Apply to HOAs?

The Americans with Disabilities Act (ADA) is a federal law passed in 1990 to prevent discrimination against people with disabilities. It covers access to public spaces, employment, transportation, and services. But not every HOA facility falls under its scope.

The ADA generally applies when a part of your community is used by the public. For example, if your clubhouse or pool is rented to outside groups or used for events that are advertised publicly, those areas may need to meet ADA standards. This includes things like wheelchair-accessible entrances, ramps, restrooms, and parking.

Private areas, like residential sidewalks or parks that are only for residents and their guests, aren’t usually covered by the ADA. Instead, these spaces fall under the Fair Housing Act (FHA), which has its own set of accessibility rules focused on housing.

That said, the line between private and public can blur quickly. If your community center doubles as a polling place or hosts neighborhood events open to outsiders, parts of it may be legally required to meet ADA guidelines.

It’s smart to review how your shared spaces are used—not just by residents, but by the public, too. That can help you figure out where ADA compliance is necessary and where FHA rules apply instead.

Understanding Disability Accommodations Under the Fair Housing Act

Even if the ADA doesn’t fully apply to your HOA, you’re still responsible for complying with the FHA, which requires “reasonable accommodations” for residents with disabilities. This is where many boards run into confusion.

A resident might ask to install a wheelchair ramp, modify a walkway, or keep a service animal even though your rules don’t typically allow it. The law expects HOAs to consider these requests seriously and, in most cases, approve them—unless doing so would impose a major burden on the community or change the nature of the services offered.

That doesn’t mean HOAs must approve every request without limits. If a proposed modification would be prohibitively expensive or structurally impossible, the board can deny it, but not without documenting the reasons and ideally speaking with legal counsel.

The bottom line? Reasonable accommodations aren’t optional. They’re a legal obligation, and they help ensure every resident can use and enjoy their home just like anyone else.

Common Areas Where ADA Compliance Comes Into Play

Some parts of your HOA are more likely to raise accessibility concerns than others, especially if they’re used by both residents and guests. Below are some of the most common areas where compliance questions come up:.

HOA Wheelchair Ramps and Accessible Routes

Rear view woman using a wheelchair climbs up a ramp | HOA ADA compliance

Wheelchair ramps are one of the most frequently requested accommodations. If the ramp is for a private home, it’s generally up to the homeowner to install and maintain it. But the board can’t unreasonably deny permission, even if the ramp doesn’t match the neighborhood’s aesthetics.

For shared spaces like the clubhouse or pool, wheelchair ramps are often required under the ADA, especially if the facility is open to the public or used by residents with mobility issues.

Beyond ramps, your board should also be thinking about the condition of sidewalks, parking lots, doorways, and any other routes residents or guests might take. Cracked pavement, uneven bricks, or narrow hallways can all create barriers for people with mobility aids.

Pool Access and ADA Rules

Pools can get tricky. If your HOA pool is only for residents and their guests, you may not be legally required to comply with the ADA. But if you allow outside rentals or host community events that are open to the public, then things change.

In those situations, ADA regulations may require specific features. These include a pool lift or a sloped entry, making the area accessible and safe to people with physical disabilities.

Even when the ADA doesn’t strictly apply, installing these features can still be a wise move. Not only do they help create a more inclusive environment. But, they also future-proof your facilities in case regulations tighten later on.

Accessible Parking and Clear Signage

If your community includes a publicly accessible building, then ADA-compliant parking is a must. This includes van-accessible spaces with the right dimensions, as well as clear signage directing people to those spots and to the accessible entrance.

Parking compliance is one of the most commonly overlooked areas of concern. Signs fade, pavement markings wear out, or upgrades get delayed. These small issues can easily turn into violations if someone files a complaint or has trouble accessing a facility.

Make accessible parking a regular part of your inspection and maintenance routine. It’s one of the simplest ways to stay compliant and show that your board takes accessibility seriously.

Maintenance and Ongoing Accessibility

Professional technician fixing elevator doors | HOA ADA Compliance

ADA compliance isn’t a one-and-done checklist. Over time, features that were once compliant may become barriers. A ramp that’s cracked or slippery, a door opener that stops working, or a bathroom with a broken grab bar—all of these can create serious problems.

To stay ahead, include accessibility features in your regular maintenance planning. Inspect shared spaces with an eye toward usability for people with disabilities. Make repairs promptly. And if you’re planning renovations, keep ADA requirements in mind from the start.

Best Practices for HOA ADA and FHA Compliance

Managing compliance doesn’t have to be overwhelming. A few simple strategies can make a big difference:

Have a clear accommodation request process: Residents should know how to ask for disability-related accommodations, what’s required, and how long it will take to get a response.
Train board members and managers: Everyone involved in reviewing requests or managing facilities should have a basic understanding of ADA and FHA requirements.
Work with qualified professionals: Architects, contractors, and legal advisors who understand accessibility laws can help you avoid costly mistakes.
Review policies regularly: HOA rules that seem neutral on paper can sometimes have unintended discriminatory effects. Periodic reviews help identify and correct those issues.
Document everything. Keep detailed records of all requests, decisions, maintenance logs, and communications related to accessibility. This protects your board and provides clarity if disputes arise.

Avoiding Common Mistakes

Even well-meaning boards can make missteps. Here are a few that come up often:

Denying a ramp or modification based on aesthetics: Curb appeal matters, but it can’t override a resident’s right to accessibility.
Asking for too much personal information: If someone requests a service animal or a modification, you can ask for documentation of need, but not their medical records or diagnosis.
Dragging your feet: Delays in responding to accommodation requests, even accidental ones, are also seen as denials under the law. Quick, clear communication is key.

Building a More Inclusive Community

Meeting HOA ADA compliance requirements doesn’t need to be burdensome. With the right knowledge and a proactive approach, your board can stay ahead of legal requirements, avoid costly disputes, and ensure your community is welcoming to all. Whether it’s installing HOA wheelchair ramps, evaluating ADA compliance for HOA pools, or managing HOA disability accommodations fairly, your leadership makes a lasting impact.

Freedom Community Management provides HOA management services in Florida. Call us at 904-490-8191 or contact us online to learn more!