CAM HOA Fee Collection Compliance: Florida Guide for CAMs

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

Key Takeaways for Florida CAMs

• Florida CAMs face significant liability when fee collection relies on email threads and spreadsheets instead of documented, consistently enforced policies aligned with Chapters 718 and 720.
• Statutory notice sequences are mandatory. Associations must issue a Notice of Late Assessment, Notice of Intent to Record a Claim of Lien, and Notice of Intent to Foreclose before any foreclosure action can proceed.
• FDCPA generally does not apply to in-house CAMs, but the FCCPA can apply to associations, and third-party collection referrals trigger full FDCPA obligations including debt-validation notices.
• Common compliance failures include selective enforcement, missing audit trails, improper payment application, and disconnected systems that allow revenue leakage during onboarding.
• Embedding payment collection inside the onboarding workflow with TenantEvaluation removes payment-chasing, maintains timestamped audit trails, and ensures funds go directly to the Association.

Florida Assessment Collection Rules Under Chapters 718 and 720

Florida law imposes a mandatory sequential notice structure before an association may enforce an assessment lien through foreclosure. Skipping any step can permanently bar recovery of attorney’s fees or invalidate the foreclosure entirely.

The notice sequence for HOAs under § 720.3085 operates as follows.

1. Notice of Late Assessment must be delivered before the association may collect any attorney’s fees related to the delinquency under § 720.3085(3)(a).
2. Notice of Intent to Record a Claim of Lien must be sent to the parcel owner’s last known address under § 720.3085(4).
3. Notice of Intent to Foreclose is a separate written notice required before filing the foreclosure action under § 720.3085(5).

For condominium associations, a 45-day pre-lien notice under § 718.121(4) and a 45-day notice of intent to foreclose under § 718.116(6)(b) are required. These notices create a minimum collection timeline with multiple waiting periods before foreclosure can be filed.

Several additional statutory parameters shape how CAMs manage delinquent accounts and apply payments.

• Interest and late fees: Florida law permits interest up to 18% per year and a late fee of the greater of $25 or 5% of the past-due installment (when authorized by governing documents) under §720.3085 for HOAs and §718.116(3) for condominiums.
• Payment application order: Every payment on a delinquent account must be applied first to accrued interest, second to administrative late fees, third to collection costs and attorney’s fees, and finally to principal under § 718.116(3). Boards may not follow owner instructions that conflict with this order.
• Board authorization: Florida statutes do not require a board vote to foreclose an assessment lien, though governing documents may impose such a requirement. CAMs must review each community’s declaration and bylaws before proceeding.
• Voting rights suspension: An owner more than 90 days delinquent may lose voting rights for HOAs and condos. CAMs should track this threshold alongside the notice sequence.

How FDCPA and FCCPA Shape CAM Collection Activity

The Federal Debt Collection Practices Act (FDCPA), codified at 15 U.S.C. §§ 1692–1692p, applies primarily to third-party debt collectors, meaning companies hired to collect debts on someone else’s behalf. When a CAM collects assessments directly for the association in-house, the FDCPA generally does not apply to that activity.

The referral decision creates the FDCPA trigger. Once an account is referred to an outside collection agency, the FDCPA’s protections apply to that agency’s conduct. These protections include sending a written debt validation notice within five days of first contact and pausing collection activity if the consumer disputes the debt in writing within 30 days.

Florida adds a separate layer that in-house CAMs must respect. The Florida Consumer Collection Practices Act (FCCPA, Fla. Stat. §§ 559.55–559.785) can apply to associations, unlike the FDCPA. When a collector violates both statutes through the same conduct, a consumer may recover statutory damages of up to $1,000 under each law.

Application fees sit in a gray area. Whether an application fee collected at onboarding is a “debt” under the FDCPA depends on the specific facts and timing. CAMs working in this space should consult association counsel before pursuing unpaid application fees through any collection channel.

Digital Payment Surcharges and Built-In Fee Collection

CAMs collecting assessments digitally need clear rules on passing processing costs to owners. Florida Statute § 501.0117 originally prohibited credit card surcharges, but the Eleventh Circuit struck it down in Dana’s Railroad Supply v. Attorney General, 807 F.3d 1235 (11th Cir. 2015) as an unconstitutional restriction on free speech. Florida merchants may now surcharge credit cards in practice, but card-brand rules still control the limits.

The operative limits for Florida associations are straightforward.

• Visa caps surcharges at 3% and Mastercard at 4%, so 3% becomes the practical ceiling for associations that accept both brands.
• Surcharges must be disclosed in accordance with applicable card-brand rules, including signage and receipt language.
• Surcharging debit or prepaid cards is restricted by federal law and card network rules, so CAMs should confirm processor guidance before enabling these fees.

A compliant alternative is a convenience-fee structure. HOA and condo associations do not qualify for convenience-fee programs under Visa and Mastercard rules, which are available exclusively to government agencies, educational institutions, and government-operated utilities. When structured correctly, with a no-fee option such as ACH and clear disclosure before the transaction, convenience-fee programs are compliant in most states.

The most reliable compliance path is collecting payments inside the onboarding workflow itself. A connected payment workflow inside TenantEvaluation presents required fees and disclosures to applicants at the correct stage of onboarding, before submission, so disclosure requirements are satisfied by design. Each Association defines what is collected and at which stage, and the workflow adapts to the property’s process. Payments move directly from the applicant to the Association’s designated account, while TenantEvaluation keeps a timestamped audit trail and does not hold the funds.

Common CAM Mistakes in Fee Collection

The most frequently cited compliance failures in Florida CAM practice share a common root: disconnection between policy and process. When written policies say one thing but daily operations follow another pattern, that gap creates liability. The following patterns show how this disconnect appears in real communities.

• Selective enforcement: Waiving late fees for one owner but not another under similar circumstances exposes the association to defenses of waiver, estoppel, or arbitrary action. Uneven treatment can also escalate into fair housing allegations when it tracks a protected characteristic.
• Missing audit trails: Accurate owner ledgers, timely billing, prompt payment processing, and complete financial records must be in place before collection activity begins. Spreadsheets and email confirmations do not create a reliable audit trail that will withstand legal scrutiny.
• Revenue leakage from disconnected systems: When payment collection sits outside the onboarding workflow, fees are missed, deposits go unconfirmed, and boards lack real-time visibility into what has been collected and what remains outstanding.
• Improper payment application: Accepting a check with a restrictive endorsement and applying it to principal first can violate the mandatory payment-application order under Florida law. This error undermines the ledger and can complicate any later foreclosure.
• Compound interest: Charging compound interest on delinquent assessments without clear authorization in the governing documents may create statutory exposure and invite owner disputes.

CAM Compliance Checklist: Seven Steps for Florida Fee Collection

This checklist translates the risk patterns above into a minimum operational framework for a defensible Florida HOA or condo assessment collection program. Each step builds on the previous one.

1. Adopt a written collection policy that defines delinquency dates, late fee and interest rates, notice timelines, payment-application order, payment-plan authority, and documentation standards, approved by the board and applied uniformly. This policy sets the triggers for every later action.
2. Send the Notice of Late Assessment before pursuing attorney’s fees under § 720.3085(3)(a) for HOAs or § 718.121 for condominiums. The timing for this notice should match the thresholds defined in the collection policy.
3. Send the Notice of Intent to Record a Claim of Lien to the owner’s address of record under § 720.3085(4) or § 718.121. CAMs should confirm addresses against association records before mailing.
4. Record the claim of lien only after the cure period expires without payment, ensuring the lien states the parcel description, owner name, association name and address, amount due, and due date per § 720.3085. Accurate lien details support later enforcement.
5. Send the Notice of Intent to Foreclose before filing the foreclosure action under § 720.3085(5) or before entry of a foreclosure judgment under § 718.116(6)(b). CAMs should track these dates alongside attorney milestones.
6. Apply all payments in statutory order: interest first, then late fees, then attorney’s fees and costs, then principal, regardless of any restrictive endorsement on the payment. Consistent application protects the ledger and supports court review.
7. Collect application fees and deposits inside the onboarding workflow using a connected payment system that routes funds directly to the Association’s designated account, maintains a timestamped audit trail, and presents required disclosures before transaction completion. This step closes the gap between policy and daily practice.

See how TenantEvaluation automates step seven inside the platform your team already uses.

Frequently Asked Questions

What are the exact Florida notice timelines before recording a claim of lien?

Florida law requires multiple notices before an HOA or condominium association can record a claim of lien or initiate foreclosure. CAMs should consult the specific provisions of Chapters 718 and 720, along with the association’s governing documents and legal counsel, to confirm each required notice and deadline. The process includes notices related to late assessments, intent to lien, and intent to foreclose, which together create a timeline that often spans several months.

What is the maximum late fee an HOA or condo may charge under Chapters 718 and 720?

Florida law permits interest up to 18% per year and a late fee of the greater of $25 or 5% of each past-due installment (when authorized by governing documents) under §720.3085 for HOAs and §718.116(3) for condominium associations. Associations should confirm whether their documents allow this level of interest and whether compound interest is permitted. Routine fines under the statutory cap of $100 per violation and $1,000 aggregate may not serve as the basis for a lien or foreclosure.

When does an application fee trigger FDCPA obligations for a CAM?

An application fee collected at onboarding before a tenancy or ownership relationship exists may fall outside the FDCPA definition of “debt.” The FDCPA also does not apply to original creditors collecting their own debts in-house and instead focuses on third-party collectors. However, the Florida Consumer Collection Practices Act (FCCPA) can apply to associations. If an application fee remains unpaid after occupancy begins and the association refers the account to an outside collection agency, the FDCPA applies to that agency’s conduct from first contact. CAMs should involve association counsel before escalating any unpaid application fee.

Must a board vote before referring an account to collections?

Florida statutes do not require a board vote to foreclose an assessment lien under § 718.116 or § 720.3085. The association’s governing documents, including the declaration, bylaws, or board-adopted collection policy, may still require board authorization before referral to legal counsel or before filing suit. CAMs must review each community’s governing documents before proceeding.

A board-adopted written collection policy that pre-authorizes referral to counsel after a defined delinquency threshold usually offers the most efficient approach. This structure removes the need for a case-by-case vote while preserving board oversight through the policy itself. Any exceptions, such as approving a payment plan outside standard terms, should be documented with board authorization to avoid selective enforcement exposure.

Conclusion: Turning Compliance Risk into a Repeatable Workflow

Florida CAMs that operate without a written, consistently enforced collection policy face compounding exposure. FCCPA liability can arise from in-house collection missteps, FDCPA liability appears once an account moves to a third-party collector, owners can raise selective enforcement defenses, and audit-trail gaps can undermine every notice sent. The statutory notice windows under Chapters 718 and 720 function as hard requirements, and missing a required notice can bar attorney’s fee recovery or void a foreclosure.

A payment workflow that is inseparable from onboarding gives CAMs a practical answer. The payment workflow described earlier, which routes funds directly to the Association’s account while maintaining a timestamped audit trail, replaces spreadsheets and email confirmations with an audit-ready system that boards can see in real time. CAMs gain consistent fee collection, and owners see clear, documented charges.

TenantEvaluation is built specifically for community associations and management companies, with FCRA compliance as the foundation. With 5,000+ communities, 100,000+ applications processed annually, and $150M generated for communities, the platform offers an onboarding-native approach that keeps funds out of the vendor’s hands while giving CAMs, boards, and applicants complete payment visibility from day one.

Schedule a personalized TenantEvaluation walkthrough and remove payment-chasing from your Florida community association’s onboarding workflow.