LEGISLATIVE SESSION 2025

ANALYSIS OF BILL HB 983

HB 983 (SUMMARY)

Homeowners' Association

GENERAL BILL by Representative Juan Carlos Porras

Companion Bill:

Last Action:   2/24/2025 filed in House

This bill revises s. 720.301, F.S. to be consistent with s. 720.302(3)(b).

The bill provides that governing documents do not include recreational covenants relating to privately-owned recreational amenities, even if they are attached to the governing documents. The bill provides that the Office of the Condominium Ombudsman, upon petition of 10 percent of the total voting interests in an homeowners association, or eight members, whichever is greater, is to appoint a specified employee or attorney to monitor the homeowners' association election of directors; with costs borne by the association.

The bill creates a new section s. 720.3025, F.S. “Regulation” permitting local law enforcement agencies the authority to audit, inspect, and investigate homeowners’ associations.

It is unclear why revising and changing recall procedures are necessary since the current method used works just fine. It makes no sense to have owners encumbered to pay the filing fee, not the association. And the possibility exists that associations may attempt to thwart the process by not picking up certified or registered mail. Currently, the process server serves the association and can verify that the association was served.

The bill modifies recall procedures and prohibits the suspension of a voting interest when voting to recall a member of the board of administration. The bill also provides that service of a recall agreement be served on the association by registered mail. A parcel owners recall agreement is rejected if: (i) improperly served; (ii) executed by a person who was not the record owner or designated voter; (iii) was previous marked for the removal of any board member; (iv) does not contain any markings that indicate the selection by an owner to either remove or retain a board member; and does not contain the signature of the owner.

The bill establishes a rebuttable presumption that an owner executing a recall agreement is the designated voter for the parcel and that revocation of a parcel owner's recall agreement be in writing and delivered to the association before an association is served with the written recall; revising the timeframe in which a certain petition or action must be filed and to require that an association be named as the respondent in such petition or action; and providing that a director or an officer is delinquent if payment is not made by the first day of the assessment period if they are not found in the governing documents.

The bill provides that if a staggered term of a board member does not expire until a later annual meeting, or if all the members’ terms would otherwise expire but there are no eligible candidates, the terms of all board members must expire at the annual meeting, and such members may stand for reelection unless prohibited by the declaration, bylaws, or articles of incorporation.

The bill amends s. 720.306, F.S. and removes the requirement that secret ballots cast by members who are not in attendance at a meeting be mailed or delivered to the association in a specified manner. The bill removes the requirement that a valid ballot be cast once confirmed and removes the provision that a member may nominate himself or herself as a candidate for the board at a meeting where the election is held, provided certain conditions are met. The bill further requires that board members be elected by written ballot or voting machine and prohibits the use of proxies in electing the board in general elections or in elections to fill vacancies. The bill also requires the association to mail, deliver, or electronically transmit, to each member entitled to vote on first notice of the date of the election under a specified timeframe before the election.

The bill amends s. 720.3086, F.S. to delete the word “amenities.” The bill provides those residential subdivisions where a parcel owner must pay amenities dues to a private amenities’ owner, such private amenities owner shall make public, within 60 days after the end of each fiscal year, a complete financial report of the actual, total receipts of amenity dues received by the owner and an itemized list of the expenditures the owner made with respect to operational costs, expenses, or other amounts expended.

The bill amends s. 720.311, F.S.; providing that certain actions filed be tried without a jury; and providing that the parties are entitled to an immediate hearing; authorizing the court to limit the time for taking testimony. The bill authorizes the party filing an action to request a temporary injunction for a certain purpose;. The bill also authorizes a party to remove an action for arbitration and seek a trial de novo in circuit court. In addition, the bill removes the Department of Business and Professional Regulation requirement to adopt rules. The bill requires that if an association be ordered, by judgment or decree, to pay a prevailing parcel owner's reasonable attorney fees and cost.

The bill amends s. 720.401, F.S. and requires prospective purchasers of a parcel subject to association membership to be provided with certain documents, in addition to the disclosure summary, before executing a contract. The bill authorizes prospective purchasers to cancel their contract within a specified timeframe under certain circumstances. The bill specifies that the 3-day recission cancellation period does not include Saturdays, Sundays, and legal holidays.

The bill creates Part IV of ch. 720, F.S. (consisting of ss. 720.408 through 720.413,) entitled “recreational covenant” and provides definitions including “amenity dues”, and “amenity expenses”.

The bill defines “recreational covenant" as “a recorded covenant, separate and distinct from a declaration of covenants for a homeowners' association, that sets forth the nature and requirements for membership, use, or purchase of privately-owned recreational amenities by parcel owners in one or more community.”

In addition to mandatory membership or mandatory payment of amenity dues by some or all of the parcel owners in a community, the recreational covenant must be recorded in the official records of the county where the property is located and must contain information regarding the amenity dues that may be levied against a parcel owner or other persons to be members or permitted to use privately-owned recreational amenities. Further, the recreational covenant must include remedies that the private amenities owner or other third party may have in connection with nonpayment of amenity dues.

EFFECTIVE JULY 1, 2025