Florida HOAs have mixed emotions about House Bill 1203. Several new laws came into effect on July 1, 2024, and as a result, some HOA members living in the Sunshine State feel a little more relaxed.
The objective of HB 1203 is to promote transparency and consistency across Florida homeowners associations. Some communities have very strict rules to the point where owners feel oppressed. In other cases, owners struggled to find HOA information which is supposed to be available to all members.
Table of contents
HOAs were expected to make several changes in a relatively short amount of time, (the bill was only filed at the beginning of 2024), but not all HOAs, at least at this time, intend on updating their governing documents (more on that later).
It’s still too early to see how these new laws will impact Florida HOAs, but if they end up being effective, it wouldn’t be too surprising to see other states adopt similar laws.
HOAs can no longer enforce these rules
While this list is not comprehensive, we have included some of the most significant items in HB 1203. The list is still long, and if you end up with more questions about any of these rules, we strongly recommend reaching out to your attorney.
Owners cannot be forced to park pickups in their garages
Many HOAs had previously required owners who drove pickup trucks or work vehicles to keep them out of site. That meant parking them in their garage, or using a parking lot, city street or other less convenient option.
Now, owners, tenants and guests can park pickup trucks anywhere that they could park a smaller vehicle, regardless of any official insignia or visible designation. They can also park work vehicles, as long as they are not classified as commercial motor vehicles, and first responder vehicles.
Requiring owners to collect trash receptacles in an unreasonable amount of time
Notwithstanding any provision to the contrary in the HOA’s governing documents, an association may not levy a fine or impose a suspension if an owner leaves garbage receptacles at the curb or end of their driveway 24 hours before and/or after the designated garbage collection day or time.
No immediate fines for holiday décor left up too long
Notwithstanding any provision to the contrary in the HOA’s governing documents, an association may not immediately levy a fine or impose a suspension if an owner leaves holiday decorations or lights on their property for too long. The HOA must first deliver a written violation notice and give the owner 1 week after the notice is delivered to take the décor down.
Issuing fines without a hearing
A fine or suspension levied by the board cannot be issued unless the board has provided at least 14 days’ written notice of the owner’s right to a hearing. The notice must be sent to the mailing or email address in the association’s official records and, if applicable, to any occupant, licensee, or invitee of the owner, sought to be fined or suspended.
The hearing must be held within 90 days after the notice is issued, in front of a committee of at least three members appointed by the board who are not officers, directors, or employees of the association, or the spouse, parent, child, brother, or sister of an officer, director, or employee.
The committee may hold the hearing by telephone or other electronic means.
Paying fines
If a violation has been cured before a hearing, or in the manner specified in a written notice, a fine or suspension may not be imposed.
If a violation is not cured and the proposed fine or suspension levied by the board is approved by the committee by a majority vote, the committee must set a payment due date. However, that date must be at least 30 days after written notice of the findings have been delivered to the owner.
Attorney fees and costs may not begin to accrue until after the payment due date and the time for an appeal has expired.
Bans on boats, flags, vegetable gardens, clothing lines and artificial turf in backyards
Unless prohibited by general law or local ordinance, HOAs cannot outright ban any of the items mentioned above if they are not visible from the parcel’s frontage or an adjacent parcel, an adjacent common area, or a community golf course. Owners can do a lot more with/in their backyards.
Improvement denials without a clear explanation
If an HOA denies a request or application for the construction of a structure or other improvement on a parcel, the association or committee must provide written notice to the owner, stating with specificity, the rule or covenant that caused the HOA to deny the request or application, and the specific aspect or part of the proposed improvement that does not conform to the rule or covenant.
Backyard “structure” limitations
An association, including committees, may not enforce or adopt a covenant, rule, or guideline that limits or places requirements on the interior of a structure that is not visible from the parcel’s frontage or an adjacent parcel, an adjacent common area, or a community golf course. Assumedly this refers to sheds and similar storage items.
Mandating written requests for cooling or heating systems similar to other models that have been preapproved by the HOA
HOAs cannot make owners submit plans for a central air-conditioning, refrigeration, heating, or ventilating system if such system is not visible from the parcel’s frontage, an adjacent parcel, an adjacent common area, or a community golf course and is substantially similar to a system that is approved or recommended by the association or a committee thereof.
Additional rules and requirements
Officers and directors
Newly elected or appointed directors must complete the department-approved education for newly elected or appointed directors within 90 days after being elected or appointed.
The certificate of completion is valid for up to 4 years.
A director must complete the education specific to newly elected or appointed directors at least every 4 years.
In addition to the educational curriculum:
- A director of an association that has fewer than 2,500 parcels must complete at least 4 hours of continuing education every year
- A director of an association that has 2,500 parcels or more must complete at least 8 hours of continuing education every year
Record keeping
HOAs must maintain each of the following items, when applicable, for at least 7 years, unless the governing documents of the association require a longer period of time:
- Copies of any plans, specifications, permits, and warranties related to improvements constructed on the common areas or other property that the association is obligated to maintain, repair, or replace
- A copy of the bylaws of the association and of each amendment to the bylaws
- A copy of the articles of incorporation of the association and of each amendment thereto
- A copy of the declaration of covenants and a copy of each amendment thereto
- A copy of the current HOA rules
- The minutes of all meetings of the board of directors and of the members
- A current roster of all members and their designated mailing addresses and parcel identifications. A member’s designated mailing address is considered the member’s property address, unless the member has sent written notice to the association requesting that a different mailing address be used for all required notices
- The association shall also maintain the e-mail addresses and the facsimile numbers designated by members for receiving notice sent by electronic transmission of those members consenting to receive notice by electronic transmission
- The e-mail addresses and facsimile numbers provided by members to receive notice by electronic transmission must be removed from association records when the member revokes consent to receive notice by electronic transmission. However, the association is not liable for an erroneous disclosure of the e-mail address or the facsimile number for receiving electronic transmission of notices
- All of the association’s insurance policies
- A current copy of all contracts to which the association is a party, including, without limitation, any management agreement, lease, or other contract under which the association has any obligation or responsibility. Bids received by the association for work to be performed are also considered official records and must be kept for a period of 1year
- The financial and accounting records of the association, kept according to good accounting practices
- Ballots, sign-in sheets, voting proxies, and all other papers and electronic records relating to voting by parcel owners, which must be maintained for at least 1 year after the date of the election, vote, or meeting
By January 1, 2025, an association that has 100 or more parcels shall post the following documents on its website or make available such documents through an application that can be downloaded on a mobile device:
- The articles of incorporation of the association and each amendment thereto
- The recorded bylaws of the association and each amendment thereto
- The declaration of covenants and a copy of each amendment thereto
- The current rules of the association
- A list of all current executory contracts or documents to which the association is a party or under which the association or the parcel owners have an obligation or responsibility and, after bidding for the related materials, equipment, or services has closed, a list of bids received by the association within the past year
- The annual budget required by subsection (6) and any proposed budget to be considered at the annual meeting
- The financial report required by subsection (7) and any monthly income or expense statement to be considered at a meeting
- The association’s current insurance policies
- The certification of each director as required by s.720.3033(1)(a)
- All contracts or transactions between the association and any director, officer, corporation, firm, or association that is not an affiliated homeowners’ association or any other entity in which a director of an association is also a director or an officer and has a financial interest
- Any contract or document regarding a conflict of interest or possible conflict of interest as provided in ss. 468.436(2)(b)6. and 720.3033(2)
- Notice of any scheduled meeting of members and the agenda for the meeting, as required by s. 720.306, at least 14 days before such meeting
- The notice must be posted in plain view on the homepage of the website or application, or on a separate subpage of the website or application labeled “Notices” which is conspicuously visible and linked from the homepage
- The association shall also post on its website or application any document to be considered and voted on by the members during the meeting or any document listed on the meeting agenda at least 7 days before the meeting at which such document or information within the document will be considered
- Notice of any board meeting, the agenda, and any other document required for such meeting as required by subsection (3), which must be posted on the website or application no later than the date required for notice under subsection (3)
The association’s website or application must be accessible through the Internet and must contain a subpage, web portal, or other protected electronic location that is inaccessible to the general public and accessible only to parcel owners and employees of the association.
Inspection and copying of records
Any person who knowingly and intentionally defaces or destroys accounting records during the period in which such records are required to be maintained, or who knowingly or intentionally fails to create or maintain accounting records that are required to be created or maintained, with the intent of causing harm to the association or one or more of its members, commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.
Community association manager requirements
Community managers and community management firms must:
- Attend, in person, at least one member meeting or board meeting every year
- Give HOA members the name and contact information for each community association manager or representative of the firm assigned to the HOA, the manager’s or representative’s hours of availability, and a summary of the duties for which the manager or representative is responsible
- The HOA shall also post this information on the association’s website or application required under s. 125 720.303(4)(b)
- Update the HOA and its members within 14 business days after any change to such information
- Provide to any member, upon request, a copy of the contract between the manager or firm and the HOA, and include such contract with the association’s official records
A community association manager who provides services to an HOA must biennially complete at least 5 hours of continuing education that pertains specifically to homeowners’ associations, 3 hours of which must relate to recordkeeping.
Pros, cons and loopholes
HB 1203 is lengthy, and there is a lot of information for HOAs to process, but many owners are feeling optimistic about the possibility of having more freedom and transparency. Generally speaking, boards also support efforts to be more transparent with, and accountable to, their communities. However, not all associations intend to make changes at this time. And legally, they may not have to.
Pros
- More freedoms for HOA members
- Creates more consistency within Florida HOAs
- May boost transparency when it comes to rules and bylaws
- Increases accountability
- Meaningful consequences for malicious actions carried out by board members
- Educational training empowers boards and managers to better serve their communities
Cons
- Creates additional work for managers and boards who will need to change enforcement processes
- Additional obligations created for board members could discourage owners from running
- Some HOAs feel the state has overreached and made it harder for boards and managers to maintain property values and aesthetics
- Relaxed rules may encourage a few owners to “push boundaries”
- Some laws are not specific enough or have created more confusion for HOAs
- Not all HOAs will adopt laws, creating more frustration for current HOA members
Loopholes
At least one HOA has publicly stated that it has no intention of changing its current parking ban on work vehicles and pickup trucks, but there are undoubtedly more communities that aren’t adopting the new laws.
How can they do this? It comes down to the way the rules have been worded. Citing “Kaufman language,” the HOA says it is not legally obligated to modify its current documents.
Kaufman language refers to the phrase “as amended from time to time,” a phrase that some HOAs include in their governing documents and covenants. It ensures that future legislative amendments automatically apply to those documents. However, without this phrase, only laws existing at the document’s recording date are enforceable.
That means if an HOA’s ban on pickup trucks was written in its rules 20 years ago, and there is no Kaufman language, it is not legally obligated to make any changes.
Until the state laws contain different language, there isn’t much that HOA members can do. If updates are made, we’ll let you know.
