Florida House Bill 657: Reforming Homeowners' Associations

In December, Florida State Representative Juan Porras introduced House Bill 657, targeting reform in how homeowners' associations (HOAs) and community associations function. This proposed legislation aims to reshape governance and dissolution processes by establishing a Community Association Court system for transparent dispute resolution within associations. The new system seeks to streamline conflicts, enhancing regulatory compliance requirements and governance efficiency.

One significant aspect of HB 657 is its focus on the dissolution procedures of HOAs. To dissolve an HOA under the proposed bill, a homeowner must secure a petition with signatures from at least half of the association’s voting members. An HOA board meeting must occur within 60 days to consider the termination plan, which requires two-thirds approval from voting members. If unsuccessful, another dissolution attempt cannot occur for at least 18 months, ensuring stability in community management.

HB 657 also outlines responsibilities for HOA boards in successful terminations, including equitable asset distribution according to the termination plan. Measures to prevent misuse of funds and enhance financial transparency are integrated, with penalties for non-compliance reaching up to $5,000 per violation. Having recently passed a committee review, the bill now moves to the House floor and potentially to the Senate, awaiting approval and a gubernatorial signature to take effect on July 1.