Understanding Florida’s New HOA Laws

Effective July 1, 2024, Florida enacted significant changes to its Homeowners' Association (HOA) laws, introducing measures aimed at increasing transparency, accountability, and homeowner rights within HOA communities. These new regulations, encapsulated in House Bill 1203, represent a substantial shift in how HOAs operate and interact with their members. Understanding these changes is crucial, and this post will provide an overview of the key changes, highlight specific statutory requirements, and discuss the penalties that HOAs could face if they fail to comply with the new laws.

Key Changes in the New HOA Laws

Document Distribution and Transparency

• Requirement to Provide Governing Documents: By October 1, 2024, HOAs must provide each member with a physical or digital copy of the association's rules and covenants. Additionally, they must post these documents on the association's website or make them available through a mobile application. This ensures that all members are fully informed of the community’s regulations and any updates thereto​​​.
• Financial Transparency: HOAs with at least 1,000 parcels must prepare audited financial statements annually, regardless of total annual revenues. Smaller associations must also provide detailed financial reports according to their revenue thresholds. This measure aims to promote financial accountability and trust within the community​​.
• Statutory Reference: Florida Statutes § 720.303(4)(b)
• Key Requirements:
• Copies of governing documents must be provided to all members.
• Governing documents and meeting minutes must be accessible online.

Hurricane Protection

• Establishment of Specifications: HOAs are mandated to adopt hurricane protection specifications for structures under their governance. Importantly, they cannot deny applications for installing compliant hurricane protection products such as roof systems and shutters. This provision ensures that homeowners can enhance their properties’ resilience to hurricanes without facing undue barriers​.
• Statutory Reference: Florida Statutes § 720.3035(1)
• Key Requirements:
• Establish hurricane protection specifications.
• Approve compliant hurricane protection installations.

Fines and Enforcement

• Restrictions on Minor Infractions: HOAs cannot impose fines for minor infractions such as leaving garbage receptacles out within 24 hours of collection day or holiday decorations unless they have been up for more than a week after a violation notice. This change aims to prevent punitive measures for trivial matters and fosters a more reasonable approach to rule enforcement​.
• Due Process for Fines: Before imposing a fine or suspension, HOAs must provide at least 14 days’ written notice of the right to a hearing to the parcel owner. Hearings must be held within 90 days of issuing the notice, and the committee's decision must be communicated within seven days post-hearing. These provisions ensure that homeowners receive fair treatment and due process​​.
• Statutory Reference: Florida Statutes § 720.305(2)
• Key Requirements:
• Fines cannot exceed $100 per violation.
• Fines must not exceed $1,000 in aggregate without specific governing document provisions.

Vehicle Parking

• Right to Park: Members and their guests can park any personal vehicle, including pickup trucks, in their driveways regardless of HOA rules. This change respects the rights of homeowners to utilize their property without facing arbitrary restrictions from the HOA​.
• Statutory Reference: Florida Statutes § 720.3075(4)
• Key Requirements:
• Allow parking of personal vehicles in driveways.
• Permit law enforcement vehicles to park on public roads or rights-of-way.

Vendor Restrictions

• Freedom to Choose Contractors: HOAs cannot require members to hire contractors from a preferred vendor list or those with specific licenses. This provision allows homeowners greater freedom in selecting service providers and reduces potential conflicts of interest within the HOA​.
• Statutory Reference: Florida Statutes § 720.3075(3)
• Key Requirements:
• Members can hire any contractor regardless of the HOA's preferred vendor list.

Vegetable Gardens and Clotheslines

• Right to Garden: HOAs cannot prohibit vegetable gardens or clotheslines unless they are visible from the front of the home or other specific community areas. This change supports sustainable living practices and personal freedoms within the community​.
• Statutory Reference: Florida Statutes § 720.3045
• Key Requirements:
• Allow vegetable gardens and clotheslines that are not visible from specific areas.

Criminal Penalties for Kickbacks

• Anti-Corruption Measures: HOA officers, directors, and property managers face criminal penalties for accepting kickbacks. This measure is designed to curb corruption and ensure that decisions are made in the best interests of the community rather than for personal gain.
• Statutory Reference: Florida Statutes § 720.3033(3)
• Key Requirements:
• Prohibit solicitation or acceptance of kickbacks.
• Immediate removal of violators from office.

Meeting Transparency and Member Rights

• Enhanced Meeting Requirements: HOAs must adhere to stricter rules for conducting meetings, including providing proper notice and facilitating member attendance and participation. Secure voting procedures are also mandated to prevent fraudulent activities. These changes aim to promote transparency and member engagement in HOA governance​.
• Statutory Reference: Florida Statutes § 720.303
• Key Requirements:
• Facilitation of member attendance and participation in meetings.

Penalties for Non-Compliance

The new laws come with stringent penalties for HOAs that fail to comply with the specified requirements. Here are some of the key penalties:

Failure to Provide Documents:

• HOAs that do not provide required documents within the stipulated timeframe can face significant fines. Specifically, failure to make records accessible to members within ten business days of a request can result in minimum damages of $50 per day, up to ten days, beginning on the 11th business day after the request​​.
• Statutory Reference: Florida Statutes § 720.303(5)(b)

Financial Mismanagement:

• HOA officers and directors who misuse association funds, including unauthorized use of debit cards for association expenses, can face criminal charges. Misappropriation of funds can lead to charges of theft under Florida Statutes sec. 812.014, resulting in severe legal consequences​​.

Corruption and Kickbacks:

• Accepting kickbacks or other unethical financial gains can lead to felony charges. Such violations are punishable as felonies of the third degree, as stipulated in s. 775.082, s. 775.083, or s. 775.084. This ensures that HOA management operates with integrity and accountability​​.
• Statutory Reference: Florida Statutes § 720.3033(3)

Violation of Meeting and Voting Regulations:

• HOAs that fail to adhere to new meeting transparency requirements or engage in fraudulent voting activities can face legal action. Violations such as tampering with ballots or obstructing member voting rights can result in criminal charges, including misdemeanors of the first degree, punishable by fines and imprisonment​​.
• Statutory Reference: Florida Statutes § 720.3065

Failure to Cooperate with Law Enforcement:

• HOAs are required to assist law enforcement with investigations by providing requested records within five business days. Failure to comply can lead to criminal penalties, emphasizing the importance of cooperation with legal authorities​​.

Enforcement and Legal Costs

• Associations that do not adhere to the new rules regarding fines and enforcement can be liable for legal costs and damages incurred by homeowners. For instance, if an association improperly levies a fine or fails to follow the new enforcement protocols, affected homeowners can seek legal recourse and recover their legal expenses.
• Statutory Reference: Florida Statutes § 720.305(2)

Interest and Late Fees

• The new laws also address the accrual of interest and late fees on unpaid assessments. Associations may charge simple interest on unpaid assessments but cannot impose compound interest.
• Statutory Reference: Florida Statutes § 720.3085(3)

Conclusion

The new HOA laws in Florida, effective July 1, 2024, bring about substantial changes that enhance transparency, homeowner rights, and ethical management practices. Additionally, HOAs must adapt to these changes to avoid severe penalties, including fines, legal actions, and criminal charges. Further, staying informed about these updates and ensuring compliance is essential to safeguarding the interests of both the associations and their members.

For further information, please refer to the full text of HB 1203 and the relevant Florida statutes cited. Should you need assistance with navigating these changes, or have questions about how could this impact your household, our firm is here to help. Contact Quattrochi, Torres and Taormina, P.A. to ensure you are fully compliant with the new regulations and to address any concerns you may have.

By Juan Fernando Torrico, Esquire

July, 2024

References:

HB 59 — Provision of Homeowners’ Association Rules and Covenants

https://www.flsenate.gov/Committees/billsummaries/2024/html/3476

CS/HB 293 - Hurricane Protections for Homeowners' Associations

https://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=78865

CS/CS/HB 1203 — Homeowners’ Associations

https://www.flsenate.gov/Committees/BillSummaries/2024/html/3488

House Bill 1203 (2024) introduces comprehensive changes to various statutes governing HOAs, including sections 468.4334, 468.4337, 720.303, 720.3033, 720.3035, 720.3045, 720.305, 720.3065, 720.3075, 720.3085, 720.317, and 720.318 of the Florida Statutes.