HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1243 Homeowners' Associations
SPONSOR(S): Judiciary Committee, Regulatory Reform & Economic Development Subcommittee, Porras
and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 13 Y, 0 N, As CS Larkin Anstead
Subcommittee
2) Judiciary Committee 21 Y, 0 N, As CS Mawn Kramer
3) Commerce Committee
SUMMARY ANALYSIS
A homeowners’ association (HOA) is an association of residential property owners in which voting membership
is made up of parcel owners, membership is a mandatory condition of parcel ownership, and the association is
authorized to impose assessments that, if unpaid, may become a lien on the parcel. HOAs , regulated under
Chapter 720, F.S., may levy fines against or suspend certain access rights of a parcel owner for failing to
comply with the HOA’s governing documents. Additionally, Florida law requires the officers and directors of an
HOA to comply with certain requirements.
The bill:
Provides educational requirements for community association managers (CAMs) and HOA directors.
Requires a CAM meeting specified conditions to take specified actions, including attending at least one
member or board meeting annually and providing the members with specified information.
Requires an HOA with 1,000 parcels or more to prepare audited financial statements, and prohibits an
HOA from preparing a financial statement for consecutive fiscal years.
Defines “kickback” and provides that an HOA officer, director, or manager who knowingly solicits, offers
to accept, or accepts a kickback commits a third-degree felony and is subject to monetary damages.
Prohibits an HOA, and the officers, directors, employees, and agents thereof, from using a debit card
issued in the HOA’s name, or billed directly to the HOA, for the payment of any association expenses,
and provides that any person who uses a debit card issued in the HOA’s name, or billed directly to the
HOA, for any expense that is not a lawful HOA obligation commits theft.
Provides that, where a director or officer is charged with any specified crime and therefore must be
removed from office under current law, a vacancy must also be declared, and adds to the list of crimes
triggering such a removal and declaration any criminal violation under chapter 720, F.S.
Requires an HOA or its specified committees to uniformly apply and enforce on all parcel owners the
architectural and construction improvement standards set forth in the governing documents , and to
provide specified written notice to a parcel owner whose improvement request was denied.
Requires HOAs with 100 or more parcels to, by January 1, 2025, post a current digital copy of specified
records on its website or make such records available through an application, under specified
conditions.
Provides that, if an HOA receives a subpoena for records from a law enforcement agency, the HOA
must provide a copy of such records or otherwise make the records available to the agency for
inspection and copying within 5 business days unless otherwise directed by the agency or subpoena.
Creates new criminal penalties for specified records offenses, which penalties range from a second-
degree misdemeanor to a third-degree felony.
The bill may have an indeterminate fiscal impact on state and local governments.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1243c.JDC
DATE: 2/14/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Community Association Managers- Current Situation
Community association managers (CAMs) are licensed and regulated by the Department of Business
and Professional Regulation (DBPR) pursuant to part VIII of ch. 468, F.S., and the seven-member
Regulatory Council of Community Association Managers (council) housed within DBPR.1
Section 468.431(2), F.S., defines “community association management” to mean any of the following
practices requiring substantial specialized knowledge, judgment, and managerial skill when done for
remuneration and when the association or associations served contain more than 10 units or have an
annual budget or budgets in excess of $100,000:
Controlling or disbursing funds of a community association;
Preparing budgets or other financial documents for a community association;
Assisting in the noticing or conduct of community association meetings; and
Coordinating maintenance for the residential development and other day-to-day services
involved with the operation of a community association.
A CAM license is not required for a person who:
Performs clerical or ministerial functions under the direct supervision and control of a licensed
CAM, or
Performs only the maintenance of a community association and does not assist in any of the
management services.2
To become licensed as a CAM, a license applicant must:
Submit to a background check for a good moral character determination by DBPR,
Attend a DBPR-approved in-person training prior to taking the licensure examination, and
Pass the licensure examination.3
CAMs must also complete not more than 10 hours of continuing education hours as approved by the
council to renew and maintain their licenses.4
Section 468.4334, F.S., outlines the professional practice standards for CAMs and CAM firms, including
the duty to “discharge the duties performed on behalf of the association as authorized by [ch. 468,
F.S.], loyally, skillfully, and diligently; dealing honestly and fairly; in good faith; with care and full
disclosure to the community association; accounting for all funds; and not charging unreasonable or
excessive fees.”
The license of a CAM or CAM firm may be disciplined, including a suspension or revocation of their
license, or denial of a license renewal, for the grounds specified in s. 468.436, F.S., including:
Committing acts of gross misconduct or gross negligence in connection with the profession.
Contracting, on behalf of an association, with any entity in which the CAM has a financial
interest that is not disclosed.
Violating any provision of chapter 718 (relating to condominiums), chapter 719 (relating to
cooperatives), or chapter 720 (relating to homeowners’ associations) during the course of
performing community association management services pursuant to a contract with a
community association.5
1 S. 468.4315(1), F.S.
2 S. 468.431(2), F.S.
3 S. 468.433, F.S.
4 S. 468.4336 and 468.4337, F.S.
5 S. 468.436(2)(b)5.-7., F.S.
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DATE: 2/14/2024
Community Association Managers- Effect of the Bill
The bill requires CAMs and CAM firms authorized by a contract to provide community association
management to a homeowners’ association (HOA) to:
Attend in person at least one HOA member meeting or board meeting annually;
Provide HOA members:
o The name and contact information for each CAM or representative of the CAM firm
assigned to the HOA.
o The CAM’s or representative’s hours of availability.
o A summary of the duties for which the CAM or representative is responsible.
The bill requires that the HOA post this information on the HOA website or application. The bill requires
that a CAM or CAM firm must update the HOA and its members within 14 business days after any
change to such information.
A CAM or CAM firm is required to provide to any HOA member the contract between the HOA and the
CAM or CAM firm upon the member’s request, and include such contract with the HOA’s governing
documents.
The bill mandates that, every two years, a CAM that provides services to an HOA must complete at
least 5 hours of continuing education that pertains specifically to HOAs, 3 hours of which must relate to
recordkeeping.
Homeowners’ Associations
A homeowners’ association (HOA) is an association of residential property owners in which voting
membership is made up of parcel owners, membership is a mandatory condition of parcel ownership,
and the association is authorized to impose assessments that, if unpaid, may become a lien on the
parcel.6 In Florida, approximately 45 percent of homes are part of an HOA.7
Only HOAs whose covenants and restrictions include mandatory assessments are regulated by ch.
720, F.S., the Homeowners’ Association Act (HOA Act). Like a condominium, an HOA is administered
by an elected board of directors. The powers and duties of an HOA include the powers and duties
provided in the HOA Act, and in the HOA’s governing documents, which include the recorded
covenants and restrictions, together with the bylaws, articles of incorporation, and duly adopted
amendments to those documents.8
An HOA must be a Florida corporation and the initial governing documents must be recorded in the
official records of the county in which the community is located.
After control of the HOA is obtained by members other than the developer, the HOA may institute,
maintain, settle, or appeal actions or hearings in its name on behalf of all members concerning matters
of common interest to the members. The HOA may defend actions in eminent domain or bring inverse
condemnation actions. Any individual member or class of members may bring any action without
participation by the HOA, but a member does not have authority to act for the HOA by virtue of being a
member.9
No state agency has direct oversight over HOAs. However, Florida law provides for a limited mandatory
binding arbitration program, administered by the Division of Condominiums, Timeshares and Mobile
Homes (division), within DBPR, for certain election and recall disputes.10
6 S. 720.301(9), F.S.
7 Patrick Regan, “45% of Florida Homes Are Part of an HOA, the Highest Percentage in the Nation.” South Florida Agent
Magazine, Apr. 21, 2023, https://southfloridaagentmagazine.com/2023/04/20/45-of-florida-homes-are-part-of-an-hoa-the-
highest-percentage-in-t he-nation/ (last visited Feb. 14, 2024).
8 See generally ch. 720, F.S.
9 S. 720.303(1), F.S.
10 S. 720.311, F.S.
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DATE: 2/14/2024
HOA Governing Documents
An HOA’s governing documents include the:
Recorded declaration of covenants for a community and all duly adopted amendments thereto;
HOA’s articles of incorporation and bylaws and any duly adopted amendments thereto; and
Rules and regulations adopted under the authority of the recorded declaration, articles of
incorporation, or bylaws and any duly adopted amendments thereto. 11
The declaration of covenants, much like a constitution, establishes the community’s basic covenants
and restrictions.12 The articles of incorporation establish the HOA’s existence, basic structure, and
governance.13 The bylaws govern the HOA’s operation and administration, while the rules and
regulations typically supplement the other documents, addressing matters of everyday policy. 14
Unless otherwise provided in the governing documents or required by law, an HOA’s governing
documents may be amended by the affirmative vote of two-thirds of the HOA’s voting interests.15 Within
30 days after recording a governing document amendment, the HOA must give its members copies
thereof unless a copy was provided to the members before the vote on the amendment, in which case
the HOA must only provide the members with notice of the amendment’s adoption. 16
Official Records- Current Situation
An HOA must maintain each of the following items, when applicable, which constitute the official
records of the HOA:17
A copy of the HOA’s governing documents, as follows:
o the declaration of covenants and each amendment,
o bylaws and each amendment,
o articles of incorporation and each amendment, and
o current rules.
Copies of any plans, specifications, permits, and warranties related to improvements
constructed on the common areas or other property that the HOA is obligated to maintain,
repair, or replace.
The minutes of all meetings of the board of directors and of the members, which minutes must
be retained for at least 7 years.
A current roster of all members and their designated mailing addresses and parcel
identifications. A member's designated mailing address is the member's property address,
unless the member has sent written notice to the HOA requesting that a different mailing
address be used for all required notices.
o The HOA shall also maintain the e-mail addresses and the facsimile numbers
designated by members for receiving notice sent by electronic transmission of those
members consenting to receive notice by electronic transmission. A member's e-mail
address is the e-mail address the member provided when consenting in writing to
receiving notice by electronic transmission, unless the member has sent written notice to
the HOA requesting that a different e-mail address be used for all required notices. The
e-mail addresses and facsimile numbers provided by members to receive notice by
electronic transmission must be removed from HOA records when the member revokes
consent to receive notice by electronic transmission.
All of the HOA’s insurance policies, which must be retained for at least 7 years.
11 S. 720.301(8), F.S.
12 Joseph Adams, HOA Governing Documents Explained (July 1, 2018),
https://www.floridacondohoalawblog.com/2018/07/01/hoa -governing-doc uments-explained/ (last visited Feb. 14, 2024).
13 Id.
14 Id.
15 S. 720.306(1), F.S.
16 Id.
17 S. 720.303(4), F.S.
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DATE: 2/14/2024
A current copy of all contracts to which the HOA is a party, including, without limitation, any
management agreement, lease, or other contract under which the HOA has any obligation or
responsibility.
o Bids received by the HOA for work to be performed must also be considered official
records and must be kept for a period of 1 year.
The financial and accounting records of the HOA, kept according to good accounting practices.
All financial and accounting records must be maintained for a period of at least 7 years. The
financial and accounting records must include:
o Accurate, itemized, and detailed records of all receipts and expenditures.
o A current account and a periodic statement of the account for each member, designating
the name and current address of each member who is obligated to pay assessments,
the due date and amount of each assessment or other charge against the member, the
date and amount of each payment on the account, and the balance due.
o All tax returns, financial statements, and financial reports of the HOA.
o Any other records that identify, measure, record, or communicate financial information.
A copy of the disclosure summary.
Ballots, sign-in sheets, voting proxies, and all other papers and electronic records relating to
voting by parcel owners, which must be maintained for at least 1 year after the date of the
election, vote, or meeting.
All affirmative acknowledgments made pursuant to s. 720.3085(3)(c)3., F.S.
All other written records of the HOA which are related to the operation of the HOA.
The HOA bylaws must require the HOA to post all notices of board meetings in a conspicuous place in
the community at least 48 hours in advance of a meeting, except in an emergency.18
The official records must be maintained within the state for at least 7 years and be made available to a
parcel owner for inspection or photocopying within 45 miles of the community or within the county in
which the HOA is located within 10 business days after receipt by the board or its designee of a written
request. An HOA may comply with these requirements by having a copy of the official records available
for inspection or copying in the community or, at the option of the HOA, by making the records available
to a parcel owner electronically via the Internet or by allowing the records to be viewed in electronic