House Bill 1203: Key Takeaways

In recent legislative sessions, Florida lawmakers have passed significant legislation affecting homeowners' associations (HOAs). House Bills 1203, 59, and 293 introduce various changes aimed at enhancing transparency, accountability, and homeowner rights within community associations. This post will focus solely on HB 1203 to outline the key changes of which our clients must be aware:

• Website Requirement for HOAs:
  • HOAs with 100 or more parcels must establish a website by January 1, 2025, and post specific records accessible to owners, along with notices of meetings.
• Continuing Education for CAM and CAM Firms:
  • CAM and CAM firms must annually complete 10 hours of continuing education, with at least 5 hours relating to HOAs and 3 hours focused on recordkeeping.
• Financial Reporting:
  • Associations with 1,000 or more parcels must prepare audited financial statements and are prohibited from reducing this requirement for consecutive years.
• Prohibition on Debit Card Use:
  • Associations and related individuals cannot use association-issued debit cards for non-association expenses. Violations are considered theft.
• Detailed Accounting Request:
  • Parcel owners can request a detailed accounting of amounts owed to the association. Failure to provide within 15 business days waives outstanding fines.
• Director Education Requirements:
  • Newly elected or appointed directors must complete department-approved education within 90 days, valid for 4 years. Annual education hours vary based on association size.
• Fining and Suspension Rules:
  • New rules govern the process for fining and suspending use rights, including notice requirements, hearing timelines, written findings, and payment deadlines.
• Prohibitions on HOA Fines and Restrictions:
  • Restrictions are placed on certain fines, including those related to garbage receptacles and holiday decorations. HOAs are also restricted from prohibiting certain parking activities.
• New Criminal Penalties:
  • Criminal penalties are introduced for various offenses, including kickbacks, fraudulent voting activities, and violations related to official records.
• Architectural Review Requirements:
  • Associations or committees must provide written notice when denying construction requests, refrain from placing limits on certain interior systems, and allow for the installation of vegetable gardens and clotheslines in specific areas.

As always, we encourage our clients to stay informed about any additional legal requirements introduced by the new laws, and consult with legal counsel to ensure full compliance with all relevant regulations. Stay tuned for more information about other laws passed this session.

What Should CAMs do Differently Now?

Given the detailed nature of legislative texts, it can be time-consuming and challenging for community association managers to review every aspect thoroughly. We try and distill this information into easily digestible points to help our clients prioritize key takeaways:

1. Establish a website by January 1, 2025, if the HOA has 100 or more parcels and ensure the website includes specific records accessible to owners and posts notices of meetings promptly
2. Review all fining and suspension policies to align with new rules and requirements regarding notice requirements, hearing timelines, and written findings to protect homeowner rights. Pay close attention to any restrictions pertaining to garbage receptacles, holiday decorations, and parking activities.
3. Review and update any architectural review processes to incorporate new requirements for providing written notice.

As always, we encourage our clients to stay informed about any additional legal requirements introduced by the new laws, and consult with legal counsel to ensure full compliance with all relevant regulations. Stay tuned for more key takeaways from this recent legislative session.