JACKSONVILLE, Fla. – The ongoing debate over whether homeowners’ associations in Florida should be eliminated has raised concerns about potential effects on property values.
The Cato Institute has released a report that showed homes in HOAs generally sell for 5 to 6% more in the housing market than homes that are not in one.
This could be an issue if legislation proposed by Florida House Member Juan Carlos Porras passes, which has received a lot of support from many Floridians.
“Because they always send you letters and they’re always nitpicky,” said Southside resident Michael Skonieczny, who has lived in the same HOA since 1988.
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But some are cautioning against this move over the real estate value issue. “I understand the frustration of people who get annoyed with HOAs, think they’re a bunch of ‘Karens’ on the board trying to limit their freedom. But the fact of the matter is, if HOAs are done away with, the price of their homes will plummet,” Mill Creek Homeowner’s Association President Scott Lara told News4Jax earlier this month.
As of now, the law does not have a Senate companion bill in the Florida legislature, which is often needed to get passed, but it’s not required. The Florida Legislative session begins in mid-January, and if the bill is passed, it would take effect in July.
The bill says that if two-thirds of residents in an HOA vote in favor, the HOA could be dissolved.