Florida HOA Laws 2024: Updates And Changes

Homeowners associations should keep up with the changes in Florida HOA laws 2024. Board members and community managers alike have a duty to ensure legal compliance. Unfortunately, it’s often difficult to stay in the loop, especially with the passing of several new laws every year.

What are the New Florida HOA Laws 2024?

The legislative session in Florida this year has led to five significant bills affecting community associations. These are HB 1203, HB 1029, HB 1021, HB 59, and HB 293. These bills affect both homeowners associations and condominium associations. They cover a variety of topics, including hurricane protection, criminal penalties for board members, voting rights, and new board meeting mandates.

HB 1203

For Homeowners Associations

House Bill 1203, passed on May 31, 2024, introduces new rules for HOAs in Florida and will be effective from July 1, 2024.

Education for Directors and Officers

New directors must submit a written certification within 90 days of election or appointment. This certification confirms that they have read the association’s governing documents, will uphold them, and will faithfully carry out their duties. They must also complete a state-approved condominium education course.

This certification is valid for four years. Directors must complete continuing education annually: four hours for associations with fewer than 2,500 parcels and eight hours for those with 2,500 or more.

Director and Officer Offenses

HB 1203 outlines criminal charges and penalties for HOA operations. Directors or officers must be removed from office if charged with certain crimes, including forgery, theft, embezzlement, obstruction of justice, or fraudulent voting activities.

Criminal penalties include:

• Second-degree misdemeanor for knowingly violating records inspection requests
• First-degree misdemeanor for defacing or destroying required accounting records
• Third-degree felony for withholding records to avoid legal penalties
• First-degree misdemeanor for fraudulent activities related to association elections

Elections and Voting

The bill allows homeowners to consent to electronic voting in elections, using electronic means to provide their consent.

Official Record Requirements

Starting January 1, 2025, associations with 100 or more parcels must maintain a website where members can download official records. These records must be kept for at least seven years unless the governing documents require a longer period.

Enforcement

HOAs and their committees must enforce standards fairly across all parcel owners, providing written notice of the rules when denying a construction request. HOAs cannot restrict homeowners from installing vegetable gardens and clotheslines if not visible from the street, neighboring properties, or common areas. Associations also can’t restrict the interior of homes if the changes aren’t visible from the outside.

Fines and Suspensions

Before imposing fines or suspensions, associations must:

• Provide 14-day written notice of the right to a hearing
• Hold the hearing within 90 days
• Dismiss fines or suspensions if the violation is corrected before the hearing
• Offer a written decision within seven days, including details of fines, suspensions, or remedies

Parking

HOAs cannot prohibit personal or work vehicles (not commercial motor vehicles) from parking in a homeowner’s driveway. They also cannot ban first responder vehicles from parking on public roads within the community.

Fiduciary Duties

Chapter 720 now explicitly references Section 617.0830, highlighting that HOA officers and directors have a fiduciary duty to act in the association’s best interests. This includes acting in good faith, with due care, and in a manner believed to be in the corporation’s best interests.

Additional Updates from HB 1203

• Assisting Law Enforcement. Associations must comply with subpoenas by providing requested records within five business days.
• Prohibition on Debit Cards. Associations are banned from using debit cards to pay expenses. If used improperly, the responsible person must be removed from office.
• Financial Reporting. Associations with 1,000 or more parcels must provide audited financial statements, and they cannot reduce the required level of financial reporting for consecutive years.
• Parcel Owner Accountings. Owners can request a detailed accounting of amounts owed. If the association fails to respond within 15 business days, any overdue fines over 30 days will be waived, provided the owner wasn’t previously notified of the fines.

HB 1029

For Condominium Associations

Effective July 1, 2024, HB 1029 introduces the My Safe Florida Condominium Pilot Program. This program offers hurricane mitigation inspections and grants to eligible condo associations within 15 miles of the coastline. Participation requires board approval. Grant projects may receive up to $175,000.

HB 1021

For Condominium Associations

Governor DeSantis signed HB 1021 into law on June 14, 2024. It mainly affects condominium associations and mandates a shift toward more formal governance and operations.

Financial Reporting and Reserve Management

The bill restricts associations from preparing consecutive financial reports to fulfill annual requirements. Associations must now notify unit owners that a Structural Integrity Reserve Study (SIRS) is available for inspection within 45 days of its completion.

Associations must also inform the division within this timeframe. A database of associations that have completed the SIRS will be created by January 1, 2025. The division’s annual report will include this information starting after December 31, 2024.

Additionally, condominium associations can pause or reduce reserve funding if a building becomes uninhabitable due to a natural disaster. However, they must resume contributions once the building is livable again. Misusing a debit card in the association’s name without proper board approval is now considered theft, leading to immediate removal from office.

Mandatory Structural Inspections

The law now excludes single, two-, three-, and four-family dwellings with three or fewer stories from mandatory structural inspections.

Official Records

Email addresses are now considered official records if the unit owner consents to electronic notices or explicitly authorizes sharing their information. Associations are responsible for ensuring that personal information is not shared with third parties, with some liability protections in place unless the disclosure was intentional.

Additional invoices, transaction receipts, building permits, and board member education certificates are now official records. Associations must keep these records organized and respond to requests with a checklist that documents all provided records. The association must keep this checklist for seven years. It also serves as proof of compliance.

Furthermore, if records are posted online, the association can direct requestors to the website to fulfill record requests. The division can request access to an association’s website to investigate complaints about record access.

Destroying or failing to maintain required accounting records with intent to cause harm is now a first-degree misdemeanor, punishable by civil penalties and removal from office. Anyone who willfully refuses to produce records to evade detection, arrest, or punishment is guilty of a third-degree felony.

Condominium Board Meetings

Condominiums with more than 10 units must hold quarterly board meetings, allowing members to ask questions and discuss agenda items. Notices for meetings discussing assessments must clearly state this, including the estimated costs and purpose.

For contracts discussed during meetings, copies must be available to members upon request or posted on the association’s website.

Director Education Requirements

Directors of residential condominiums must complete a four-hour educational course covering key topics like structural inspections, elections, and financial management within 90 days of appointment or election. This certification is valid for seven years.

After one year, directors must take an annual one-hour continuing education course and certify in writing that they have read and will uphold the association’s governing documents.

Finally, directors appointed before July 1, 2024, must complete the initial course by June 30, 2025.

Criminal Penalties for Directors and Officers

HB 1023 introduces criminal penalties for board members, including removal from office if charged with crimes like forgery, theft, destruction of records, obstruction of justice, or election fraud. First-degree misdemeanors apply for defacing accounting records, while third-degree misdemeanors cover fraudulent voting activities. Third-degree felonies apply to those who refuse to produce records to avoid criminal detection or solicit kickbacks.

Hurricane Protection

New requirements mandate that residential and mixed-use condominiums adopt hurricane protection standards. These standards outline whether unit owners or the association are responsible for installation and maintenance. Hurricane protection is not considered a material alteration, and the board cannot deny compliant installations.

Moreover, installation costs are enforceable as assessments. However, removal costs for maintenance should not fall on unit owners.

SLAPP and Defamation Suits

HB 1021 also revises laws against SLAPP lawsuits. It now protects unit owners from retaliatory actions by the board, such as fines or defamation suits, for voicing complaints or criticisms. However, SLAPP protections apply only when owners act in good faith and not for frivolous purposes.

Expanded Investigation Jurisdiction

The Division of Florida Condominiums now has broader authority to investigate financial issues, elections, record-keeping, and conflicts of interest complaints. If criminal activity is suspected, the division may refer complaints to local law enforcement.

Voting Rights

Boards must honor requests for electronic voting and notify unit owners at least 90 days before an election if voting rights are to be suspended due to unpaid dues.

Additional Notes on HB 1021

The statute of limitations for construction defects now extends until unit owners have elected a majority of the board. Starting October 1, 2024, pre-sale disclosures must include the most recent financial statements and annual budget. New requirements also streamline community association management services, including timely record turnovers after service terminations.

HB 59

For Homeowners Associations

Florida House Bill 59, effective July 1, 2024, requires associations to distribute a copy of their rules and covenants to all members by October 1, 2024, and to new members after that. If the HOA amends the rules, it must provide updated copies. Associations can distribute these documents digitally via the association’s website or email.

HB 293

For Homeowners Associations

The Governor signed House Bill 293, titled “Hurricane Protections for Homeowners’ Associations,” on May 28, 2024. This bill mandates that homeowners associations (HOAs) establish specific guidelines for hurricane protection measures. These measures must align with existing building codes. Furthermore, these guidelines may include requirements for the color and style of hurricane protection devices.

“Hurricane Protection” covers a range of installations, including storm shutters, erosion controls, impact-resistant windows and doors, roof systems, reinforced garage doors, fuel storage tanks, and fixed generators.

If a homeowner’s application for hurricane protection complies with the HOA’s specifications, the association cannot deny it. However, HOAs can insist that owners follow the established building style for the community’s external appearance.

Florida HOA Laws 2024: Community Association Managers (CAMs)

New rules under Chapter 468 require CAMs to attend at least one member or board meeting annually, provide key contact information to members, and offer copies of contracts between the association and the CAM firm upon request. CAMs must also complete at least five hours of continuing education biannually.

Transfer of Services

Upon termination, CAMs must return all official records within 20 business days. If the termination notice is sent by certified mail, CAMs may retain records necessary to complete final financial statements or reports. Failure to comply can result in civil penalties.

Conflicts of Interest

When considering contracts over $2,500 that may involve a conflict of interest, associations must solicit multiple bids and ensure the disclosure of the potential conflict. The board must approve such contracts with a two-thirds vote.

These bills introduce significant changes for Florida HOAs, aiming to improve transparency, accountability, and protection for homeowners.

Stay Up-to-Date on Florida HOA Laws 2024

Several new laws for HOAs in Florida this year have been passed. Most of these have already gone into effect, yet many board members remain clueless about the changes and updates. Understanding new HOA laws is paramount, as noncompliance can result in hefty penalties and liability.

If your community needs help keeping up with Florida HOA laws 2024, hire an HOA management company to help. Find the best one in your area today using our online directory!

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