Homeowner associations (HOAs) maintain standards, uniformity and a sense of community while collecting dues to pay for common areas, services and general neighborhood improvements. An HOA works to create the best living conditions for their community, usually leading to frequent upgrades and improvements. Florida has roughly 50,000 HOAs, making it the second state in the country with the most HOAs, behind California. However, many Floridians have been unhappy with their HOAs rules, citing unfairness and an overexertion of control, requesting a change in legislature.
After the tragic collapse of the Champlain Towers South condo building in Surfside, Florida in 2021, legislators signed seven bills into effect that reshaped homeowner rights and HOA responsibilities for 2023. Now, a recent bill signed by Florida Governor Ron DeSantis, takes effect in July and may provide more leniency for homeowners, while giving HOAs more guidelines and restrictions.
Here’s what you need to know about these new rules and regulations, and how they might affect HOAs in other states:
Increased Transparency Between Homeowners and HOA
- The Homeowners Association Act acts as a homeowners Bill of Rights, restricting HOAs from participating in rules that garnered frequent complaints
- All HOAs must keep their official records for at least 7 years, or face repercussions
- HOAs must give notice and agendas for any scheduled meeting at least 14 days in advance, in plain sight on its website
- It is a felony for any member of the HOA to solicit offers or accept kickbacks, and will result in immediate removal from office
Mandatory Guidelines for HOA leaders
- All newly elected or appointed directors must complete educational course requirements
- Courses must be completed within 90 days and repeated every 4 years
- An HOA director with less than 2,500 parcels must complete 4 hours of educational courses yearly or face suspension
- An HOA manager or a representative of the HOA management firm must complete 5 hours of continuing education on HOAs, with 3 hours dedicated to recordkeeping
Protections against Intrusive HOA oversight
- HOAs are restricted from banning contractors or workers from a homeowner’s property
- HOAs will be prohibited from fining residents for garbage can placement and holiday decorations
- Limited rules against restrictions to gardens and clothesline that are not visible from outside the residence
- All installation plans for heating/cooling systems and appliances must be reviewed and approved
- HOAs can’t restrict tenants, owners, or guests from parking in their driveway, or areas where they otherwise legally have the right to park
- HOAs can’t restrict a homeowner from hiring a contractor if they are not a preferred vendor of the HOA
Changes in Real Estate Commission
- Sellers will no longer be required to pay the buyer’s agent’s commission
- Buyers must either cover this cost themselves or choose to go without an agent entirely.
- This creates more room for negotiation, increased competition, and potentially lower costs
- Sellers will have the flexibility to set a flat fee for their property, while buyers can decide whether to use a realtor or search on their own.
HOA laws undergo frequent updates and are enforced on a state-by-state basis. With other states watching the results of these new rule changes, it is very possible that more states could follow Florida’s updated HOA model. Whether these laws will remain in place for long is yet to be seen.
