Homeowners’ associations (HOAs) are a defining feature of a great many Florida neighborhoods. Designed to maintain property values, create cohesive communities, and manage shared amenities, HOAs promise an organized and well-maintained living environment. Additionally, the local governmental water management districts require the community’s developers to create an entity to manage the surface water drainage system over the large tracts of land upon which the homes will be built. Those entities are created and become what we know as the homeowners’ association.
Purchasers looking to buy in an HOA often drive through the community and are attracted to the overall appearance of the well-maintained homes, manicured lawns, maintained roads, common amenities, and so much more. Yet, a curious phenomenon persists: some people willingly buy homes within HOAs only to become vocal critics or active challengers of the very organizations they once accepted. For instance, they receive a letter to clean the driveway or roof and react angrily. Or, they are furious when the HOA tells them they cannot park their boat in the neighborhood. Why does this negative reaction happen? Why educated and smart, prospective purchasers fail to read the covenants and rules as part of their purchase process can boggle the mind.
For many, buying a home is the largest purchase of their lifetime; yet some do so without even reading the covenants and rules. Despite initial enthusiasm, some residents later find themselves at odds with their HOA. A few even want to find a way to disband and fully terminate their HOA. To those people it must be asked, why did you even move into an HOA in the first place?
But, when a disgruntled homeowner is also a legislator, the consequences can be significant. For instance, House Bill 657 proposes a mechanism to terminate HOAs with alarming ease. It may be the most draconian piece of legislation ever presented affecting Florida’s HOAs. According to this legislation, only 20 percent of the voting interests need to sign a petition and present it to the board upon which the board must notice a meeting of the membership to take place within 60 days for a vote to terminate the HOA. If two-thirds of the total voting interests vote in favor of the plan of termination, then the termination can proceed.
In this author’s view (and many other experienced community association practitioners), House Bill 657 is a wrecking ball. Not only does it provide for the mechanism for the disgruntled owners to try to terminate an HOA, but it also provides for a new type of court within the existing judicial structure referred to as a “community association court program.” Importantly, this bill does not provide for any type of funding mechanism to create such a court system. Worse still, this bill eliminates one of the most effective civil dispute resolution processes ever created: the statutory required pre-suit mediation process. Simply put, for many HOA disputes the aggrieved party must first initiate the mediation process, which dispenses with 80 to 90 percent of all HOA disputes. So, rather than having to spend tens of thousands of dollars in litigation along with the emotional turmoil that comes along with contested litigation, the parties can resolve their differences at the mediation table for pennies on the dollar as compared against the expenses of litigation.
If the foregoing issues with the bill are not enough to generate concern, the bill also requires, “beginning July 1, 2026, each newly formed incorporated association [referring to a homeowners’ association] must include the following statement in the governing documents, ‘this association and the association’s governing documents are governed by the Florida Condominium Act as amended from time to time.’” Yes, you read that correctly. It certainly makes one wonder whether the bill’s sponsors actually took the time to read their own bill before filing it or fully grasp the consequences of this requirement.
If you understand the importance of your HOA, and you want to continue to protect your investment and desire to continue to enjoy the manicured lawns and well-maintained homes in your community, then it is important that all board members, managers, and residents reach out to your Florida legislators and tell them to vote “NO” to House Bill 657.
Should you have additional questions regarding how this legislation could affect your HOA, please reach out to your association’s attorney.