A proposal that would allow homeowners associations in Florida to dissolve is moving forward in the state legislature, following a 108-2 vote in the House of Representatives on March 9. The bill, known as House Bill 657, now heads to the Florida Senate for consideration.
The legislation addresses ongoing concerns about governance and oversight within homeowners associations (HOAs) and condominium associations (COAs), which collectively govern about half of Florida’s residential communities. Lawmakers say the measure aims to give residents more control over their communities amid longstanding disputes involving election interference, embezzlement, lack of transparency, and retaliation by association leaders.
Under HB 657, the process for dissolving an HOA would begin with at least half of homeowners signing a petition. A termination plan would then require approval from two-thirds of homeowners before a court could finalize it. After dissolution, HOA property titles would be transferred first to the board of directors acting as trustees and then to an appointed person. However, legal experts have warned that this process could create challenges regarding who would maintain infrastructure such as roads and sewers after an HOA is dissolved.
Attorney William Sklar previously told The Real Deal that many counties and municipalities require HOAs for large developments so that responsibility for infrastructure remains with residents rather than shifting tax burdens onto non-HOA property owners. Lawmakers have attempted to address some concerns through amendments requiring HOAs to notify municipalities during dissolution proceedings and clarifying how easements are handled if land reverts to previous owners.
The bill also proposes creating Community Association Courts dedicated to handling cases related to HOAs and COAs, eliminating mandatory mediation before lawsuits can proceed. These courts are already funded in Miami, Fort Lauderdale, and Tampa. Additional provisions include making it a second-degree misdemeanor for association leaders who fail to provide records requested by authorities and requiring COAs without electronic voting systems to establish online platforms for board elections.
Rep. Juan Carlos Porras said during Thursday’s session that “HOAs are a failed experiment” and argued that Floridians “are sick and tired of what’s going on in their HOA.” The Senate is expected to vote on HB 657 by Friday when the legislative session concludes.
