How to Create an HOA in Florida (And Why You Might Need One If You’re Buying Into a Condo Mess)

Let me tell you something nobody teaches new investors—sometimes the only way to fix a broken property is to take control. And in Florida, when you’re dealing with condo conversions, fractured ownership, and neglected buildings, control often starts with creating or reviving the HOA.

Yep. The thing most people love to complain about—homeowners associations—can be the one thing that saves your investment from collapse.

And I’m not just talking theory. I lived it. This is the real story of how I bought 19 out of 22 units in a rundown condo complex called Sleepy Hollow, reestablished the HOA from scratch, and turned a disaster into a long-term win.

Let’s break this down so even a 10-year-old could follow—and maybe a few tired landlords, too.

First Things First—What Is an HOA?

In Florida, when a property is a condo (not a single building owned by one person), it usually means there’s an HOA (Homeowners Association) in charge of:

• Maintaining common areas (roofs, driveways, exterior walls, landscaping)

• Enforcing community rules and bylaws

• Collecting monthly dues to cover expenses

• Handling insurance and legal compliance

• Making decisions on behalf of all unit owners

In theory, an HOA is like the property’s “brain”—it keeps everything working. Without it, you’ve got chaos. Imagine trying to fix a leaking roof when you need five random owners to agree on it. Yeah, good luck with that.

Why HOAs Matter in Condo Conversions

Condo conversions were super popular in Florida in the 2000s—and now again. Developers would take old apartment complexes, slice them into individual units, and sell them as condos.

Sounds like a genius move, right? Well… yes and no.

Here’s what usually goes wrong:

• The developer sells a few units, makes some cash, and vanishes.

• No one sets up a functioning HOA.

• The roof starts leaking, and nobody wants to fix it.

• The building falls apart while everyone says, “Not my problem.”

I’ve seen this play out dozens of times. On paper, you’re buying a cute 2-bedroom condo for $85K. In reality, you’re stepping into a collapsed roof, moldy hallway, no reserves, and angry neighbors yelling about rats in the attic.

When Do You Need to Create or Reboot an HOA?

If you’re an investor buying a large number of units in a building (say, 10+), or the majority of the units in a condo conversion, you may find that the HOA:

• Doesn’t exist

• Exists on paper but not in function

• Is run by absentee owners who don’t respond

• Has zero money in reserves

• Isn’t maintaining anything

This is when you need to step in and create (or reestablish) the HOA.

Here are some clear signs it’s time:

• Common areas are falling apart

• No one is collecting dues

• Other owners are unresponsive or have vanished

• There’s no recent financial statement or board minutes

• Lenders won’t finance buyers because the association is inactive

Step-by-Step: How to Create an HOA in Florida

Let’s keep this simple. Here’s how it works:

1. Check the Original Condo Documents

You’ll need to get the Declaration of Condominium, the Articles of Incorporation, and the Bylaws. These were filed when the property was converted into condos.

Usually, they include a section saying that an HOA must be created or maintained. If one was already created and just fell inactive, you may be able to revive it instead of starting fresh.

2. Determine Voting Control

Florida law says you need a majority of the unit owners to control the HOA. If you own more than 50%, you can call a meeting, hold a vote, and appoint yourself (or others) to the board.

If you don’t have 50%, you may need to negotiate with other owners—or buy more units until you hit that magic number.

3. Revive or Register the Corporation

If the original HOA was dissolved or is listed as inactive with the state, you’ll need to revive the corporation with the Florida Division of Corporations (SunBiz.org).

This involves:

• Filing an Annual Report

• Reappointing a registered agent

• Paying any past due fees

If there’s no existing entity, you’ll start a new nonprofit corporation and file Articles of Incorporation for the HOA.

4. Hold an Organizational Meeting

Once the HOA is reactivated or formed, you’ll need to hold a meeting (even if it’s just you and a few others). This is where you elect board members, adopt a budget, and outline maintenance priorities.

5. Start Collecting Dues

You’ll need to figure out:

• Monthly or quarterly dues per unit

• What’s covered (roof repair, insurance, water, pest control, etc.)

• How to collect (bank account, payment platform, management company)

Be prepared to handle some pushback. If other owners haven’t paid dues in years, they won’t exactly be eager to start now. But once the HOA is active, you can begin enforcing collections.

6. Take Over Maintenance

Now you can:

• Fix the roof

• Hire landscapers

• Handle insurance

• Deal with code violations

• Improve the community

Real Story: Sleepy Hollow (Tampa, FL)

Let me walk you through how all this looked in real life.

I bought into a property called Sleepy Hollow—a condo conversion that had lost its way. Originally an apartment complex built in 1982, it had been sliced into 22 condos. But there was no functioning HOA, and everything was falling apart.

Roofs? Leaking.

Parking lot? Crumbling.

One unit? Had a giant hole in the floor, filled with water and bugs.

I didn’t just buy one unit—I bought 19 out of 22. That gave me majority control. But even with that, I had problems:

• No one was collecting dues

• No one was doing repairs

• The last 2-3 owners were ghosts—totally unresponsive

I had to recreate the HOA from scratch. We revived the legal paperwork, reinstated the corporation, and held our first meeting. I appointed board members (including myself), created a new budget, and started collecting dues.

And then came the real battle…

The Final Three Units (And the Fiasco)

The last two owners were holding out. They weren’t paying dues. One of them hadn’t been seen in months. And their units were dragging down the entire building.

We pushed hard—negotiated, called, emailed, offered fair deals.

Eventually, we struck a deal: We bought 19 units and secured options to buy the final 3, giving us the full right to sell the entire building with those options in place.

That’s what let us:

• Clean up the property

• Raise the rental income

• Improve tenant quality

• Boost overall value

• Sell the building as a full package deal

It wasn’t easy—but it worked.

What You Need to Watch Out For

Here’s the checklist every investor should use before touching a condo conversion:

☑️ Is there an active HOA?

☑️ Are there recent financial statements?

☑️ Are there board members and meetings?

☑️ Who owns the other units—and how many?

☑️ Are dues being collected and enforced?

☑️ Is the building insured under a master policy?

☑️ Are there any legal issues or code violations?

If the answer to any of those is “no” or “not sure,” expect trouble—and factor in the cost of fixing it.

Final Thoughts

Creating or reviving an HOA in Florida isn’t glamorous. But when you’re buying into a condo mess—or trying to clean up a broken building—it might be your only path to control.

At Sleepy Hollow, I didn’t just buy units. I bought problems. But I also bought opportunity. Once I got the HOA back on its feet, everything changed. The building stabilized. Rents came in. Tenants were happy. Investors got excited. And I finally slept well at night.

If you’re diving into these kinds of deals—do your homework. Know the law. Know the power of majority ownership. And if you’re serious, create the HOA and take the wheel.

Keep it consistent, stay patient, stay true—if I did it, so can you. This is Jorge Vazquez, CEO of Graystone Investment Group and all our amazing companies, and Coach at Property Profit Academy. Thanks for tuning in—until the next article, take care and keep building!

If you’d like to connect directly with me, feel free to book a time here:

👉 https://graystoneig.com/ceo

 Pick your expert. Book your free 15-minute consult now. We are here to help! 

Meet Cody Bergstrom, Your Expert in Finding Deals

Meet Lisa Kaye Price, the LendingGig Top ML

Jay Michalec – COO & Property Management Expert at Graystone.

Our Top Articles 

Property Profit Academy:
✔ Learn to buy properties with little to no money down.
✔ Build a $10M portfolio step by step.
✔ Master strategies like BRRRR and house hacking.