Controversial Homeowner Associations may soon be a thing of the past in Florida, following the passing of new legislation that would give people the ability to dissolve them.
House Bill 657 – Community Associations, set to take effect on July 1, will provide a clear legal framework for terminating an HOA if it becomes “dysfunctional or no longer serves the community’s interests.”
The reform bill was introduced in December by state Rep Juan Carlos Porras, in an attempt to improve transparency, accountability, and fairness for Floridians living under community associations.
Porras has raised the possibility of abolishing HOAs completely in the past, describing them as a “failed experiment” that are prone to abuse and mismanagement, resulting in them doing “more harm than good.”
HB 657 also outlines the requirements for a valid Plan of Termination, details the responsibilities of a Termination Trustee, and ensures proper distribution of assets and payment of lawful debts, according to the legislation.
To dissolve the HOA, a homeowner must provide the association’s board with a petition containing signatures from at least half of its voting members. A board meeting must then be held within 60 days and two-thirds of the total voting interests must agree to the termination plan.
The bill also prohibits “unlawful actions by association officers and directors while strengthening homeowner protections throughout the process.”
In addition, the bill also aims to address concerns from homeowners who have experienced unclear HOA procedures, limited resources in disputes with their associations and a lack of independent oversight.
According to the bill text, it will remove “burdensome pre-suit mediation requirements,” require associations to update their governing documents with “standardized language,” and create the Community Association Court Program.
The CACP is a streamlined system within the circuit courts that ensures qualified arbitrators oversee disputes and gives homeowners a more accessible and efficient path to resolution, according to the bill.
“This is one of the largest overhauls in our state’s history when it comes to condo and HOA disputes,” Porras said during an interview with WPLG-TV.
“Homeowners for the first time are going to have a voice and be able to go to a judge or go to a magistrate when it comes to these really complex condo, HOA cases.”
