Florida has introduced new legislation affecting Homeowners’ Associations (HOAs), with many changes already in effect or starting on July 1, 2024. These laws address various operational aspects, including:
Disclosure of conflicts of interest
Criminal violations for certain actions by board members Mandates on board meetings
Education requirements for board members
Standards for elections and voting
Installation requirements for hurricane protection
This summary provides an overview of the 2024 legal changes enacted by the Florida legislature concerning Homeowners' Associations (HOAs) under Chapter 720 of the Florida Statutes. It is important to distinguish these updates from the laws and regulations governing condominium associations, which are covered under Chapter 718.
Key Provisions
A. Director Education Requirements
1. Educational Curriculum:
Directors must complete a 4-hour course within 90 days of election, valid for four years.
2. Continuing Education:
- If the association has fewer than 2,500 parcels, the director must complete at least 4 hours of continuing education annually.
- For associations with 2,500 or more parcels, the director must complete at least 8 hours of continuing education annually.
3. Existing Board Directors:
Must complete the course by June 30, 2025.
4. Certification:
Directors must certify they have read the governing documents and will uphold them.
B. Director or Officer Offenses
House Bill 1203 introduces criminal charges and penalties for homeowner association operations.
1. Removal from Office:
Mandatory for directors charged with crimes such as ballot forgery, theft, destruction of records, obstruction of justice, and fraudulent voting activities.
2. Criminal Penalties:
Varying degrees of misdemeanors and felonies for actions like destroying accounting records, fraudulent voting, and refusing to produce records.
C. Official Records
1. Effective January 1, 2025, associations with 100 or more parcels
must maintain a website with digital copies of specified official
records for download on the association’s website or through an
application on a mobile device.
2. Specific official records must be maintained for at least seven
years unless the governing documents of the association require
a longer period.
D. Enforcement
1. The association and its committees must fairly apply and enforce all parcel owner standards authorized in the Declaration and published standards. They must provide written notice of the rule or covenant used when denying construction or improvement requests.
2. Associations cannot prevent homeowners from installing vegetable gardens and clotheslines in areas not visible from the frontage, adjacent parcels, common areas, or a community golf course. This extends to artificial turf, boats, flags, and recreational vehicles.
3. Associations have no authority over the interior of structures not visible from the frontage, adjacent parcels, common areas, or golf courses.
4. Associations cannot require reviews or place limits on HVAC, refrigeration, heating, or ventilating systems not visible from a parcel's frontage, adjacent parcels, common areas, or a community golf course if a similar system has been approved before.
5. If an association denies an architectural modification or construction request, it must specify the rule or covenant relied upon and the part of the modification that does not conform.
E. Fines and Suspensions
Before imposing a fine or suspension, the following must be met:
1. 14-day written notice of the parcel owner's right to a hearing.
2. The hearing must be held within 90 days of the notice.
3. No fine or suspension if the violation is corrected before the hearing.
4. The hearing can be held by phone or other electronic means.
5. Written findings must be provided within seven days of the hearing, including:
- Approved or rejected fines or suspensions
- How to cure the violation
- Reinstating a suspension
- Date for fine payment
6. The fine payment date must be at least 30 days after the written notice of the decision. Attorney fees and costs can be assessed only after the payment date and appeal period have expired.
7. No fines for garbage cans left out for less than 24 hours before or after collection, or for holiday decorations, unless more than a week has passed after notice.
F. Parking
Homeowners' associations may NOT prohibit the following:
1. A personal vehicle, including a pickup truck, from parking in the property owner (or resident)’s driveway or any other area where they have a right to park.
2. A work vehicle, which is not a commercial motor vehicle (as defined by Section 320.01(25)), parked in the property owner (or resident)’s driveway (regardless of visible insignia or designation).
3. An assigned first responder vehicle on public roads or rights-of-way within the homeowners' association.
4. A property owner from inviting, hiring, or allowing entry to a contractor or worker on the owner's parcel solely because the contractor or worker is not on a preferred vendor list of the homeowners’ association or does not have a professional or occupational license.
5. A property owner from operating a vehicle in conformance with state traffic laws, on public roads or rights-of-way, or the property owner's parcel, unless the vehicle is a commercial motor vehicle.
G. Accounting and Financial Reporting
1. Debit Cards:
Debit cards cannot be used for association expenses. Misuse leads to removal from office and a declared vacancy.
2. Financial Reporting:
Associations with 1,000+ parcels must have audited financial statements, regardless of revenue.
3. Annual Financial Reports:
Associations cannot downgrade the type of financial statements required (compiled, reviewed, or audited) for consecutive years.
4. Parcel Owner Accountings:
Owners can request a detailed account of amounts owed. If not provided within 15 business days, fines over 30 days past due are waived if no prior written notice was given. Requests are limited to one every 90 days.
5. Interest on Assessments:
Only simple interest can be charged on delinquent assessments, not compound interest, regardless of governing documents.
H. Association Rules and Covenants
1. By October 1, 2024, associations must give each member a copy (physical or digital) of their rules and covenants. New members must also receive a copy.
2. If rules change, associations must provide updated copies. They can set the method and timing for this.
3. Posting the rules on the association's website and notifying members fulfills this requirement.
4. Notices can be sent by email (with consent) or to the mailing address in the association's records.
I. Community Association Managers
1. New Requirements for Community Association Managers:
- Attend at least one association meeting annually.
- Provide contact information and availability to members.
- Share the management contract with members upon request.
- Complete five hours of continuing education every two years, including three hours on recordkeeping.
2. Transfer of Services:
- Return all association records within 20 business days after termination or upon request.
- Send termination notices by certified mail or as specified in the contract.
- Retain necessary records for up to 20 business days to complete financial reports.
- Non-compliance may result in a civil penalty.
3. Conflict of Interest:
- Disclose conflicts of interest and follow procedures for contract approvals involving CAMs or related parties.
- Solicit multiple bids for services over $2,500 from third parties.
- Include conflict of interest details in the meeting agenda and minutes.
- Approve contracts with potential conflicts by a two-thirds vote of the board.
Conclusion
The new legislation impacting Florida HOAs, effective July 1, 2024, introduces significant changes aimed at increasing transparency, accountability, and homeowner rights. Key provisions include mandatory educational requirements for directors, criminal penalties for specific offenses by board members, enhanced record-keeping and disclosure obligations, and stricter enforcement of rules. Additionally, the legislation imposes restrictions on HOA authority over private property modifications and parking, and mandates detailed financial reporting and conflict of interest disclosures. These changes ensure a more regulated and fair environment for homeowners, enhancing governance standards within HOAs across Florida.