Dreaming of a 30A home with beach access and resort‑style amenities, but unsure how the HOA structure really works in Watersound? You are not alone. Many communities here use a layered setup that includes a master HOA and a sub‑HOA, which can impact your rules, dues, and day‑to‑day living. In this guide, you will learn how layered associations work, which documents to request, how to budget for stacked dues, and what red flags to watch for, so you can buy with clarity and confidence. Let’s dive in.
Master vs sub‑HOA basics
A master association manages community‑wide elements that serve multiple neighborhoods. Think of large amenities, private roads, and design standards that apply across the development. The master HOA also enforces community‑wide covenants and funds major capital projects and reserves.
A sub‑HOA governs a specific village, phase, or building inside the master community. It can add neighborhood‑level rules and collect separate dues for things like landscaping within the village, exterior maintenance for attached homes, or smaller amenities.
In practice, your property can be subject to both. That means two sets of documents, two budgets, and two boards with distinct powers. To understand who controls what and who pays for what, you will need to review the recorded declarations and related documents for each association.
Who handles what
Master responsibilities
- Community‑wide amenities and common infrastructure
- Beach access arrangements and major landscape corridors
- Insurance for common elements owned by the master
- Capital projects and long‑term reserve funding
- Community‑wide design standards and covenant enforcement
Sub‑HOA responsibilities
- Neighborhood‑level maintenance such as streets, landscaping, and small amenities
- Exterior maintenance for attached or managed buildings, where applicable
- Architectural control at the neighborhood level
- On‑site reserves for assets specific to the sub‑association
Exact duties live in the governing documents for each association. You should read those documents to confirm the allocation of costs and control.
Florida framework
Which statute applies
Florida uses different statutes for different forms of ownership. Condominiums are governed by Chapter 718, cooperatives by Chapter 719, and single‑family HOA communities by Chapter 720. Confirm the property’s ownership type so you know which legal framework applies.
Short‑term rental rules
30A has a strong rental market. Associations may regulate rentals with minimum stay lengths, registration steps, and amenity use rules. Local zoning and registration requirements can also apply. If rental income matters to you, verify both the HOA rules and local regulations before you commit.
Insurance and hurricanes
In Florida, insurance structure is a key part of due diligence. A master policy may cover common elements, while a sub‑HOA policy may cover building exteriors. Owners often insure interiors separately. Associations can pass hurricane deductibles or special assessments to owners, so ask for the deductible policy, claims history, and any recent or pending assessments.
Watersound due diligence checklist
Layered associations require layered diligence. During your contract’s document contingency period, request the following for each association that governs the property:
- Estoppel certificate with current dues, arrears, fines, transfer fees, and any approved assessments
- Declaration or CCRs, Articles of Incorporation, and Bylaws
- Rules and Regulations plus Architectural Review guidelines
- Current annual budget and the most recent reserve study
- Board meeting minutes and financials for the last 12 to 24 months
- Insurance summary and certificate of insurance for master and sub‑HOA
- Any notices of pending or approved special assessments
- Copies of interlocal or use agreements that affect access or maintenance
- Pending litigation disclosures and any settlement documents
- Management contract and current control status (developer or owner‑controlled)
- Community map or plat showing common elements and maintenance responsibilities
- Rental policy and any application or registration process
- Any public easements and dune or beach access agreements relevant to the property
Tip: The Watersound area along 30A borders county lines in places. Confirm which county governs your parcel by checking recorded plats and county records for the specific property.
Budget stacked dues
When both a master and a sub‑HOA apply, you pay dues to each. Special assessments can also be levied by either association. To estimate your annual cost, follow this method:
- Get the current dues from estoppels for the master and each sub‑HOA.
- Add recurring fees such as club memberships, parking permits, security, or trash if not included.
- Review minutes and capital plans for any approved or likely special assessments.
- Check the reserve study and percent funded. Low reserves can signal future assessments.
- Add your owner insurance costs and deductible exposure based on the coverage gaps.
- Include county property taxes and utilities as usual.
Use this fill‑in worksheet to organize numbers:
- Master HOA dues: $_____ per month
- Sub‑HOA dues: $_____ per month
- Club fees (required or optional): $_____ per year
- Estimated special assessments: $_____
- Owner insurance and deductible exposure: $_____ per year
- Property taxes and utilities: $_____
- Total estimated housing cost: $_____
Financial red flags
Watch for signals that can impact your costs and risk:
- No reserve study or a very old one
- Reserves funded well below recommendations
- Repeated special assessments or one large recent assessment without a clear capital plan
- Multiple liens recorded against the association
- Frequent budget changes, fast‑rising dues, or high delinquency rates
- Pending litigation that could lead to owner liabilities
- Ongoing developer control with unclear timing for turnover
Key questions to ask
Bring these questions to the board or management company for each association:
- Who owns and operates beach access and any beach club, and is it included in master dues or a separate membership?
- Are any special assessments approved or planned, for what purpose, and what is the estimated per‑owner share and timeline?
- Which services are covered by master dues versus sub‑HOA dues, including roads, landscaping, security, trash, amenities, and any building insurance?
- Is there a current reserve study, and what percentage of recommended reserves is funded?
- Are there outstanding liens or pending litigation involving the master or sub‑HOA?
- What is the rental policy, including minimum stays, registration steps, and any amenity use rules for guests?
- How are hurricane deductibles handled, and how were prior storm deductibles assessed to owners?
- How and when can the board levy assessments or change rules, and what owner vote thresholds apply?
Architecture, amenities, living
Most master HOAs maintain community‑wide design standards through an Architectural Review Committee. Sub‑HOAs often add neighborhood‑level details. If you plan exterior changes, you may need approvals from both. Ask about review timelines, fees, and typical requirements for paint, fencing, outdoor structures, landscaping, and storm protection.
Amenity access can be included, mandatory at an extra fee, or optional via a separate membership. Clarify guest policies, parking, reservation procedures, and any caps on access. Because rules can vary by association and phase, verify everything in writing.
Parking, guest access, and daily enforcement often come with layered rules. The master may regulate street parking while the sub‑HOA manages neighborhood spaces. Request fine schedules, enforcement frequency, and the process to contest a citation so you know what to expect.
Next steps for buyers
If Watersound is on your short list, start your diligence early. Confirm whether your property is under a master and a sub‑HOA. Request estoppels, budgets, reserve studies, and insurance summaries for each. Review meeting minutes for the last one to two years to surface assessments, policy shifts, and maintenance issues. Verify rental policies and any county requirements if you plan to rent. When questions arise, consult an HOA‑savvy attorney to interpret documents and timelines.
If you would like a calm, organized process with clear answers and curated neighborhood insight, connect with MaryGrace Stubbs for private guidance on layered HOAs, amenity structures, and the right fit for your goals.
FAQs
What is the difference between a master HOA and a sub‑HOA?
- A master HOA manages community‑wide elements and covenants, while a sub‑HOA governs a specific village or building with its own rules and dues.
How do stacked dues work in Watersound‑area communities?
- You pay dues to each applicable association, and either association can levy special assessments if allowed by its documents.
Which Florida laws govern my association type?
- Condominiums fall under Chapter 718, cooperatives under Chapter 719, and single‑family HOAs under Chapter 720 of Florida law.
What is an estoppel certificate and why does it matter?
- It is the association’s written statement of dues, arrears, fines, transfer fees, and approved assessments that your closing depends on.
Are beach club memberships included in HOA dues?
- It varies by community structure, so confirm whether access is included, mandatory at an extra fee, or optional via a separate club.
How should I evaluate hurricane‑related costs?
- Review insurance summaries for master and sub‑HOA coverage, ask about deductible policies, and check minutes for prior storm assessments.
What should I review during my contract contingency?
- Obtain estoppels, governing documents, budgets, reserve studies, insurance summaries, minutes, and any notices of assessments or litigation.
Can boards change rules or levy assessments after I buy?
- Yes if authorized by the documents, so review voting thresholds, budget procedures, and owner rights before closing.
How do I confirm if the property is in Walton or Bay County?
- Check the recorded plat and county records for the specific parcel to verify jurisdiction and any local requirements.
Who enforces rules day to day in a layered HOA?
- Both boards can enforce different rules as defined in their governing documents, so understand each association’s authority.
