A bill to overhaul the way homeowners’ associations operate will not become law on July 1.
After being passed by the Florida House on March 5, the Senate did not pass the bill before the session ended on March 13.
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The bill — HB 657 — was filed back in December by state Rep. Juan Porras (R-Miami), who blasted HOAs as a “failed experiment.”
HOW IT WOULD HAVE WORKED
Under the bill, a homeowner who wanted to terminate his/her respective HOA would have needed to provide the board with a petition that included signatures from at least half of the HOA’s voting members.
The board would then hold a meeting within 60 days, with two-thirds of the total voting interests being required to approve the termination plan.
If the plan failed to garner enough support, then residents would have had to wait another 18 months before trying again.
WHAT IF IT GOT APPROVED?
If the termination plan had passed, the HOA board would then have been required to:
- Employ professionals to liquidate or conclude the board’s affairs
- Conduct the affairs of the association as necessary for liquidation or termination
- Carry out contracts and collect, pay, and settle debts and claims for and against the HOA
- Defend suits brought against the association
- Sue in the name of the association for sums due or owed to the HOA or to recover HOA property
- Perform any act necessary to maintain, repair or demolish unsafe or uninhabitable improvements or other HOA property in compliance with applicable codes
- Sell or otherwise dispose of HOA assets in the best interests of the HOA and execute related documents
- Collect rents, profits, accounts receivable, income, maintenance fees, special assessments, or insurance proceeds
- Contract and do anything proper or convenient to terminate the HOA’s affairs
Afterward, any remaining association assets would have been distributed equally among members or as provided in the termination plan.
In addition, HB 657 aimed to punish officers or directors who used HOA funds to campaign for or against termination plans, failed to hold a meeting after receiving a petition, or hid financial records relevant to termination plans. Violators could have been fined up to $5,000 per violation and removed from office.
WHAT’S NEXT?
Because the bill died in the Senate Rules Committee on March 13, it will not become law unless it is refiled and approved in a future legislative session.