How to Handle Multiple HOAs on a Single Property
Welcome to HOA-Ception
You've done your title search, identified the HOA, ordered the documents, and everything's on track. Then someone mentions the master association. The one nobody told you about. The one that has its own fees, its own estoppel, and its own 10-day turnaround time.
Welcome to the world of multiple HOAs on a single property. It's more common than you'd think, and it trips up experienced closers more often than anyone wants to admit.
How One Property Ends Up With Multiple HOAs
The most common scenario: master-planned communities.
A developer builds a 2,000-home community called, say, "Lakewood Ranch." The entire community has a master association that manages the main roads, entry gates, parks, and lakes. Within Lakewood Ranch, there are smaller neighborhoods — "The Villas at Lakewood Ranch," "Lakewood Ranch Estates" — each with its own sub-association.
The sub-association handles that neighborhood's specific amenities: the pool, the landscaping, the neighborhood streets. The master association handles the community-wide stuff.
So a homeowner in The Villas at Lakewood Ranch pays:
- •$150/month to the sub-HOA
- •$75/month to the master HOA
- •Both have separate governing documents, separate boards, and separate management companies
Other Multi-HOA Scenarios
Condo within an HOA community. A condo building sits inside a larger planned community. The condo has its own association (managing the building, hallways, elevators), and the planned community has a master association (managing grounds, gates, amenities).
Overlapping community districts. Some properties are in both an HOA and a Community Development District (CDD). CDDs aren't technically HOAs — they're special-purpose government entities — but they function similarly from a closing perspective. CDD assessments appear on the tax bill.
Merged or transitioning associations. Sometimes an association splits, merges, or transitions from developer to homeowner control. During these periods, a property might technically be subject to two sets of governing documents.
Why This Matters for Closing
Every association needs its own set of documents. Miss one, and you've got incomplete disclosure, incorrect payoff figures, and potential liability.
Here's what you need from each association:
Separate estoppel letters. Each association has its own assessment account for the property. Each needs to confirm balances owed. You can't combine them.
Separate resale packages. Each association has its own CC&Rs, bylaws, financial statements, and reserve study. The buyer needs both sets.
Separate fees. Transfer fees, capital contribution fees, document fees — each association charges its own. These can add up quickly. Two estoppels at $250 each, two resale packages at $300 each — that's $1,100 in document fees alone.
Separate prorations. Each association's assessments need to be prorated independently on the settlement statement.
How to Identify Multiple HOAs
This is the critical step, and it's where mistakes happen most often.
Check the deed and recorded CC&Rs. The preliminary title report should show all recorded covenants against the property. Look for references to both a neighborhood association and a master or community association.
Search county records. Look for multiple declarations of covenants recorded against the property's legal description.
Ask the management company. When you contact the sub-HOA's management company to order documents, ask: "Is this property also subject to a master association?" Good management companies will tell you. Mediocre ones won't think to mention it.
Check the community's website. Master-planned communities often list their sub-associations. This can help you identify the structure before you start ordering.
Review the MLS listing. Some MLS systems include HOA information, including monthly fees. If the listing shows two separate HOA fee amounts, that's your clue.
Look at the tax bill. CDD assessments typically appear as a line item on the property tax bill. If you see a CDD charge, treat it like an additional association.
The Cost Impact
Multiple HOAs mean multiple fees — both ongoing and at closing.
Ongoing costs for the buyer:
- •Sub-HOA assessment: $100-$400/month (typical)
- •Master HOA assessment: $50-$200/month (typical)
- •CDD assessment (if applicable): $1,000-$4,000/year
- •Two estoppels: $300-$900
- •Two resale packages: $400-$1,200
- •Two transfer fees: $200-$1,000
- •Two capital contribution fees: $200-$2,000
A Real-World Example
Here's a scenario from a recent closing in central Florida:
Property: 3BR/2BA townhome in a master-planned community Sub-HOA: Managed by Company A. Assessments: $225/month. Estoppel fee: $250. Master HOA: Managed by Company B. Assessments: $95/month. Estoppel fee: $250. CDD: Assessments on tax bill: $1,800/year.
Total monthly HOA costs: $320/month ($3,840/year) Total annual costs including CDD: $5,640/year
At closing, the document fees from both associations totaled $1,350. The buyer was not expecting this — their agent hadn't mentioned the master association until the estoppel came back showing a second account.
The lesson: discover multiple associations early. Surprises at closing are never pleasant surprises.
Tips for Closers
Build it into your workflow. Every time you identify an HOA property, your next question should be: "Is there a master association?" Make it a checkbox on your opening checklist.
Order all documents simultaneously. Don't wait for the sub-HOA documents to come back before ordering from the master. Parallel processing saves days.
Itemize clearly on the settlement statement. Break out fees by association so the buyer and seller can see exactly what they're paying and to whom.
Communicate the total cost early. Buyers and sellers need to understand the full picture before closing day. No one wants to learn about an extra $800 in fees the morning of.