Article
Courtesy of The Center Square
By Andrew Powell
Published November 1, 2023
A new bill filed in the Florida Legislature could change
how homeowners associations operate and require them to donate money to
their surrounding communities.
House Bill 173 is
sponsored by state Rep. Kimberly Daniels, D-Jacksonville,
and is aimed at nonprofit organizations that operate
residential homeowners' associations. The bill would amend
Florida law stipulating specific requirements for these
organizations to operate as homeowners' associations.
The bill would require these organizations to donate at
least 15% of the association's total income back to the
community in the county where it is located and make
available all records and documentation detailing where
these funds were used or donated.
The bill's text states that a homeowners' association that
operates a community defined in laws must be operated by an
association that is a Florida corporation.
As of Oct. 1, 1995, Florida law required associations to be
incorporated with their governing documents recorded
officially in county records where the association is
located. |
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An aerial view of a manicured Florida golf community.
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While an association can operate more than a single
community, the directors and officers of that association are responsible to
all members they serve, according to the bill.
The bill states that an association's powers and duties include those
outlined in state law and the association's governing documents.
Once members obtain control of an association, the association can
institute, maintain, settle, or appeal specific actions and hearings on
behalf of all members concerning matters of common interest.
This includes the use and maintenance of common areas, the roof and the
structure of a building and improvements that the association is
responsible. This could encompass any mechanical, electrical or plumbing
elements required to improve a building.
However, the association can defend its actions before commencing any
litigation against another party in the name of the association that
involves cash amounts greater than $100,000. Still, approval must first be
obtained from the majority of members.
It further stipulates that members need to have the authority to act on
behalf of the association simply by being a member. If passed, the bill
would take effect on July 1.
Daniels did not respond to a request for comment about her bill.
CLICK HERE TO READ
THE ORIGINAL FILED VERSION OF HB 173
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