HOA Application Fee Collection Requirements by State

Written by: Luis Teran, Co-founder, CEO, TenantEvaluation

Key Takeaways for HOA and Condo Fee Compliance

• Most states rely on governing-document authorization and a reasonableness standard for HOA application and transfer fees, while Florida stands out by capping condominium transfer fees at $150 per applicant.
• Every state reviewed requires explicit authorization in the declaration, bylaws, or CC&Rs before any fee may be charged; board resolutions or management practice alone do not create fee authority.
• Fees must be paid directly to the association’s designated account, and management companies may only retain funds when the management contract clearly grants that right.
• Statutory dollar caps exist in only a few states (Florida, Washington, Texas, Nevada, Illinois, Utah), while most states apply a reasonableness test with no fixed limit.
• TenantEvaluation’s TEpayments by Zinc workflow embeds compliant, direct-to-association fee collection into resident onboarding—see how TEpayments eliminates manual tracking and removes compliance risk from your onboarding process.

50-State Summary Table of HOA and Condo Fee Rules

These principles play out differently across state lines. The table below maps the statutory landscape state by state, showing where explicit caps exist and where governing-document authorization and reasonableness remain the only constraints.

The table below summarizes the statutory framework for HOA and condominium application and transfer fees across all 50 states. States without a dedicated HOA statute default to governing-document authorization and common-law reasonableness.

State	Statutory Citation / Absence	Governing-Document Authorization Required	Cap / Reasonableness Standard
Alabama	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Alaska	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Arizona	A.R.S. §33-442, A.R.S. §33-1806	Yes — governing documents	Transfer-fee covenants unenforceable, disclosure fees about $400 cap
Arkansas	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
California	Civ. Code §4530, §4575	Yes — governing documents	No flat transfer fees, actual cost only, no dollar cap
Colorado	CCIOA, HB 22-1137	Yes — governing documents	Fees must be reasonable, no fixed dollar cap
Connecticut	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Delaware	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Florida	Fla. Stat. §718.112(2)(i), §720.30851	Yes — declaration, articles, or bylaws	Condominiums: $150 per applicant cap (subject to CPI adjustment by DBPR), HOAs: fees if authorized and reasonable
Georgia	No specific HOA fee statute, SB 406 (2024)	Yes — governing documents	Reasonableness standard
Hawaii	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Idaho	Idaho Homeowners Association Act	Yes — CC&Rs must expressly authorize	Reasonableness standard, no cap
Illinois	765 ILCS 605/22.1	Yes — governing documents	Reasonable fee only, subject to $375 statutory cap
Indiana	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Iowa	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Kansas	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Kentucky	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Louisiana	Louisiana HOA statutes	Yes — governing documents required for all assessments	Reasonableness standard, no cap
Maine	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Maryland	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Massachusetts	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Michigan	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Minnesota	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Mississippi	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Missouri	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Montana	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Nebraska	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Nevada	Nevada Revised Statutes (NRS)	Yes — governing documents	Statutory cap on resale packages, no separate per-item charges
New Hampshire	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
New Jersey	No specific HOA fee statute	Yes — governing documents	Reasonableness standard
New Mexico	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
New York	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
North Carolina	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
North Dakota	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Ohio	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Oklahoma	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Oregon	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Pennsylvania	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Rhode Island	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
South Carolina	S.C. Code §27-1-70	Yes — governing documents	Private transfer fees unenforceable, association fees subject to reasonableness
South Dakota	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Tennessee	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Texas	Tex. Prop. Code §207.003	Yes — declaration must authorize transfer fee	Resale certificate capped at $375, update fee capped at $75, no application-fee cap
Utah	Utah Code §57-1-46, §57-8a-210	Yes — declaration or reinvestment fee covenant required	Reinvestment fee capped at 0.5% of property value, payoff fees capped at $50
Vermont	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Virginia	Va. Code §55.1-358	Yes — governing documents	Private transfer fees recorded after July 1, 2011 unenforceable, association fees subject to reasonableness
Washington	RCW 64.90.640	Yes — governing documents	Resale certificate capped at $275, update fee capped at $100
West Virginia	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Wisconsin	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap
Wyoming	No specific HOA fee statute	Yes — governing documents	Reasonableness standard, no cap

The following state spotlights highlight jurisdictions with detailed statutory guidance or high HOA and condominium transaction volume, giving practical context for the caps and authorization rules summarized above.

Florida Condominium and HOA Fee Rules

Fla. Stat. §718.112(2)(i) is the controlling statute for condominium transfer-approval fees. A condominium association may charge a transfer-approval fee only when two conditions are satisfied: the association’s approval of the transfer is required, and the declaration, articles, or bylaws specifically authorize the fee. When both conditions are met, the fee is capped at $150 per applicant, with spouses and dependent children counted as a single applicant. The cap is subject to possible adjustment for inflation every five years as calculated and published by DBPR.

Beyond the $150 transfer-approval cap, Florida’s Condominium Act imposes two additional constraints: associations are prohibited from collecting capital contributions from new owners, and transfer-approval fees may not be charged for lease renewals with the same lessee. Estoppel certificate fees fall under a separate statutory framework (§718.116(8)), capped at a base of approximately $299 (CPI-adjusted), with add-ons of $119 for expedited requests and up to $179 for delinquent accounts, so boards must track multiple fee schedules by transaction type.

Florida HOAs governed by Chapter 720 are regulated separately from condominiums and may charge fees when authorized in the governing documents and reasonable in amount. All fees must be paid directly to the association’s designated account, and management companies may facilitate collection but have no independent authority to retain fees unless the management contract expressly provides that right.

Texas Resale Certificate and Transfer Fee Limits

Texas Property Code §207.003 caps the fee for assembling, copying, and delivering the resale certificate package at $375, with an update fee capped at $75. The statute requires the certificate to itemize every transfer-related fee, identify the payee, and state the amount. Any transfer fee must be authorized by the declaration to be enforceable, and some Texas courts have held that such fees must be reasonable in relation to the association’s actual financial needs. No statutory cap exists on application fees separate from the resale certificate. Fees are paid directly to the association or its designated account as specified in the resale certificate.

California Actual-Cost Standard for Transfer Charges

California’s Davis-Stirling Common Interest Development Act governs HOA fee collection. Civil Code §4530 and §4575 prohibit flat transfer fees and limit charges to the actual cost of changing ownership records plus the actual cost of documents provided. Civil Code §4525 requires the resale certificate to disclose any transfer fees or capital contribution fees. No statutory dollar cap applies, so the reasonableness standard controls. Governing-document authorization is required before any fee may be charged. Fees are paid directly to the association’s designated account, with the seller typically bearing the cost under the standard California Residential Purchase Agreement.

New York HOA and Co-op Application Fee Practices

New York imposes no statutory cap on HOA application or transfer fees. Authorization must derive from the governing documents, including the declaration, bylaws, or proprietary lease for cooperative buildings. A reasonableness standard applies under general contract and fiduciary-duty principles. Fees are paid directly to the association’s or cooperative’s designated account. Typical market rates for resale certificate fees range from $200 to $400, with transfer fees from $100 to $250, based on April 2026 management company fee schedules.

New Jersey Reasonableness Standard for Association Fees

New Jersey requires governing-document authorization before any fee may be charged. A reasonableness standard applies under the New Jersey Condominium Act and general fiduciary principles. Fees are paid directly to the association’s designated account. Boards and CAMs should confirm that every fee appears expressly in the declaration or bylaws before collection.

Illinois Resale Disclosure Fee Cap

765 ILCS 605/22.1 permits condominium associations to charge a reasonable fee for providing resale disclosure documents, subject to a $375 statutory fee cap. Governing-document authorization remains required. Fees are paid directly to the association’s designated account. Typical market rates for resale certificate fees range from $150 to $300, with transfer fees from $50 to $125, based on April 2026 management company fee schedules.

Arizona Transfer-Fee Covenant Ban and Disclosure Fees

A.R.S. §33-442 renders transfer-fee covenants unenforceable. A.R.S. §33-1806 governs disclosure fees for planned communities, with aggregate disclosure-fee packages commonly capped around $400 plus rush add-ons. Governing-document authorization is required for any fee. Capital contributions and transfer fees are generally permitted when authorized by the governing documents, subject to an implied reasonableness standard. Fees are paid directly to the association’s designated account, with itemized breakdowns available upon request.

Georgia Property Owners’ Bill of Rights and Fee Transparency

Georgia requires governing-document authorization before any fee may be charged, and a reasonableness standard applies. Georgia’s SB 406 (2024), the Property Owners’ Bill of Rights Act, introduced new transparency requirements for community associations that affect how boards disclose and communicate fees. Fees are paid directly to the association’s designated account. Typical market rates for resale certificate fees range from $125 to $250, with transfer fees from $50 to $100, based on April 2026 management company fee schedules.

2026 Legislative and Enforcement Updates

Key enacted and amended statutes affecting HOA fee collection in 2024–2026:

• Florida (Condominium Transfer Fee Cap, CPI Adjustment): The $150 per-applicant cap under Fla. Stat. §718.112(2)(i) is subject to CPI-based adjustment by the Department of Business and Professional Regulation, so CAMs and boards should confirm the current adjusted figure with DBPR before collecting fees.
• Washington (WUCIOA): RCW 64.90.640 caps resale-certificate preparation fees at $275 plus a $100 update fee.
• Utah (Reinvestment Fee): Utah Code §57-1-46 addresses reinvestment fees for common interest associations.
• Georgia (SB 406, Property Owners’ Bill of Rights Act, 2024): Introduced new transparency and disclosure requirements for community associations, which affect how fees are communicated to owners and prospective buyers.
• Idaho (AG Enforcement Actions, 2024–2025): The Idaho Attorney General reached settlements with multiple HOAs and management companies for charging undisclosed transfer fees in violation of the Idaho Homeowners Association Act, reinforcing that management companies have no authority to charge fees unless the HOA’s CC&Rs expressly authorize them.

These recent changes sit on top of the long-standing compliance principles that follow, so boards should read the rules below as incorporating the latest statutory caps and enforcement trends.

Core Rules for Compliant Fee Collection

Two rules govern compliant HOA application and transfer fee collection in every state reviewed.

• Governing-document test: Before charging any fee, confirm that the declaration, bylaws, or CC&Rs expressly authorize it. Board resolutions or management practice alone are insufficient in most states.
• Direct-payment mandate: Fees must be paid directly to the association’s designated account. Management companies may facilitate collection, but their authority to retain fees must be expressly stated in the management contract and governing documents.

How TEpayments by Zinc Supports Compliant Fee Collection

The governing-document test and direct-payment mandate create operational friction for associations that rely on manual tracking or third-party processors. TEpayments by Zinc addresses both requirements by embedding compliant fee collection directly into the resident onboarding workflow.

TEpayments by Zinc is a connected payment workflow inside TenantEvaluation that allows Associations and Property Management Companies to collect application fees, deposits, and other required resident payments within the onboarding process they already use. Each Association defines what is collected and at which stage, and the capability adapts to the property’s process rather than forcing a universal sequence. Payments go directly from the applicant to the Association’s designated account, and TenantEvaluation organizes the workflow but never holds the funds.

For Florida CAMs and condominium boards operating under the $150 cap of Fla. Stat. §718.112(2)(i), TEpayments by Zinc enforces the configured fee amount at the point of collection and removes the risk of overcharging. For boards in states requiring governing-document authorization, the platform’s configurable workflow ensures only fees that the Association has defined, consistent with its declaration or bylaws, are presented to applicants.

The result is one workflow with no manual tracking, no payment chasing, and traceable records for boards that need operational clarity and confidence around where funds go. TenantEvaluation’s broader platform also includes QuickApprove for accelerated board approvals, IDVerify for biometric identity confirmation, and 55+ Communities Verification for age-restricted community documentation, all inside one FCRA-compliant resident onboarding platform built specifically for Florida community associations.

See TEpayments in action and watch how compliant fee collection integrates directly into your resident onboarding workflow with zero manual tracking.

Frequently Asked Questions

What is the maximum HOA application fee a Florida condominium association can charge in 2026?

Under Fla. Stat. §718.112(2)(i), the $150 per-applicant cap mentioned earlier applies only when both conditions are met: the association’s approval is required and the governing documents authorize the fee. Spouses and dependent children count as a single applicant for this cap. The Department of Business and Professional Regulation adjusts this figure for CPI every five years, so boards should confirm the current amount with DBPR before collecting fees. Florida HOAs governed by Chapter 720 follow separate statutes but still need governing-document authorization and a reasonable fee amount, while estoppel certificate fees carry their own statutory caps.

Do HOA application fees need to be authorized by governing documents in every state?

Yes. In every state reviewed, governing-document authorization through the declaration, bylaws, or CC&Rs is required before an HOA or condominium association may charge an application or transfer fee. Board resolutions or management company practice alone are insufficient. Idaho’s Attorney General has actively enforced this requirement, reaching settlements with associations and management companies that charged undisclosed transfer fees not authorized in their CC&Rs. States like Utah have codified this requirement explicitly in statute for reinvestment fees.

Can a management company keep HOA application fees rather than remitting them to the association?

A management company may retain HOA application fees only when the management contract and governing documents expressly authorize that arrangement. The general rule across all states is that fees must be paid directly to the association’s designated account. Management companies may facilitate collection and be compensated for administrative work, but the authority to retain any portion of an application or transfer fee must derive from a written agreement between the association and the management company. Boards should audit their management contracts to confirm fee-flow terms are clearly defined and consistent with governing documents.

Which states have no statutory cap on HOA application or transfer fees?

The majority of states, including New York, North Carolina, and most others, impose no specific statutory dollar cap on HOA application or transfer fees. These states apply a reasonableness standard, meaning fees must reflect actual administrative costs and not be arbitrary or punitive. California prohibits flat transfer fees entirely and limits charges to actual record-change and document costs. Only Florida (for condominiums), Washington (for resale certificate preparation), Texas (for resale certificate assembly), Nevada (for resale packages), Illinois (for resale certificates), and Utah (for reinvestment fees) impose specific statutory dollar limits.

How does TEpayments by Zinc help associations stay compliant with state fee requirements?

TEpayments by Zinc is a connected payment workflow inside TenantEvaluation that allows each Association to define exactly what fees are collected and at which stage of the onboarding process. Because the fee configuration is set by the Association, boards and CAMs can align the payment workflow with their governing documents and applicable state statute. Payments go directly from the applicant to the Association’s designated account, and TenantEvaluation never holds the funds. This direct-to-account flow satisfies the direct-payment mandate present in every state reviewed, while the configurable workflow supports governing-document authorization requirements by ensuring only Association-defined fees are collected.

Next Steps: Audit Your Fee Policies

Florida CAMs, property managers, and HOA boards should use the matrix above to audit current fee policies against the applicable statutory framework and governing documents. Confirm that every fee charged is expressly authorized in the declaration or bylaws, that the amount does not exceed any applicable statutory cap, and that payment flows directly to the association’s designated account. For Florida condominium associations, verify the current CPI-adjusted cap with DBPR before the July 1, 2026 adjustment date.

TenantEvaluation has processed more than 100,000 applications annually across over 5,000 communities, with FCRA compliance as the foundation rather than an afterthought. TEpayments by Zinc delivers compliant, direct-to-association fee collection inside the resident onboarding workflow your team already uses, with no spreadsheets, no payment chasing, and no compliance guesswork.

Request your compliance workflow audit and see how TenantEvaluation’s onboarding platform, including TEpayments by Zinc, can replace manual fee tracking with one connected, audit-ready system.