TALLAHASSEE – A new proposal filed in the Florida Legislature could give homeowners the unprecedented power to dismantle their homeowners association — a move supporters say would restore long-lost freedoms, and opponents warn could destabilize neighborhoods and property values.

House Bill 657, filed last week, would establish the “Homeowners’ Association Dissolution and Accountability Act.” If passed, it would create a legal roadmap for residents to completely shut down their HOA.
 

Once the petition threshold is met:

• The HOA board would have 60 days to hold a meeting on dissolving the association.

• Two-thirds of homeowners must vote in favor for the dissolution to pass.

If the vote fails, residents must wait 18 months before trying again.

Porras argues that the measure would increase transparency and restore rights to homeowners who, he says, often struggle to obtain required association documents.

“There’s a lack of transparency across the board,” he said. “Many times homeowners either don’t get the documents they’re entitled to or the association makes it harder for people to do their job.”

Real Estate Leaders Warn of Consequences

But critics in the real-estate industry say the proposal could undermine the very structures that help keep neighborhoods orderly and property values high.

Howard Flaschen, a broker with Roundtable Realty, said allowing just 20% of residents to force a vote is too low.

“Twenty percent of a neighborhood that’s upset being able to overwhelm the entire HOA and get rid of it seems awfully low to me,” Flaschen said. He noted that HOAs often maintain shared amenities — such as pools, tennis courts and landscaped entryways — that benefit entire communities.

Porras’ latest proposal also introduces several rules pointed at community associations (COAs), including the following:

Getting rid of presuit mediation requirements for COAs

Creating a new Community Association Court Program in circuit courts to better handle disputes

Requiring new COAs (those created on or after July 1, 2026) to include the following statement in their governing documents:

“This association and the association’s governing documents are governed by the Florida Condominium Act, as amended from time to time.”

Requiring other COAs (those created before July 1, 2026) to hold a meeting on whether to include that statement in their own governing documents

What if it gets approved?

If the termination plan does get passed, the HOA board would then be required to carry out the following:

• Employ professionals to liquidate or conclude the board’s affairs

• Conduct the affairs of the association as necessary for the 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 all sums due or owed to the HOA or to recover any 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 at public or private sale or exchange, convey, or otherwise dispose of assets of the HOA for an amount deemed to be in the best interests of the HOA, and execute bills of sale and deeds of conveyance in the name of the HOA

• Collect and receive rents, profits, accounts receivable, income, maintenance fees, special assessments, or insurance proceeds for the association

• Contract and do anything in the name of the HOA which is proper or convenient to terminate the affairs of the HOA

Afterward, any remaining association assets must be distributed equally among members or as provided in the termination plan.

In addition, HB 657 aims to punish officers or directors who use HOA funds to campaign for or against termination plans, fail to hold a meeting after receiving a petition, or hide financial records relevant to termination plans.

Anyone found violating those rules could be fined up to $5,000 per violation and be removed from office.
What’s next for HB 657?

Now that the bill has been filed, it will need to pass through at least one other committee before the full House will vote on it.