HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 919 Homeowners' Associations
SPONSOR(S): Commerce Committee, Regulatory Reform & Economic Development Subcommittee, Porras
and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1114
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 14 Y, 1 N, As CS Wright Anstead
Subcommittee
2) Commerce Committee 20 Y, 0 N, As CS Wright Hamon
SUMMARY ANALYSIS
A homeowners’ association (HOA) is an association of residential property owners in which voting membership is
made up of parcel owners and membership is a mandatory condition of parcel ownership. HOAs are authorized to
impose assessments that, if unpaid, may become a lien on the parcel. HOAs may levy fines against or suspend
certain access rights of a parcel owner for failing to comply with the HOA’s governing documents. In addition,
Florida law requires officers and directors of an HOA to comply with certain requirements and may be removed from
office under certain circumstances.
Related to HOA officers and directors, the bill:
 Provides that an officer or a director must be removed from office if charged with the following crimes:
o Forgery of a ballot envelope or voting certificate used in a homeowners' association election.
o Theft or embezzlement of funds of an HOA.
o Destruction of refusing to allow inspection of certain HOA records in furtherance of any crime.
o Obstruction of justice.
 Provides criminal penalties for accepting kickbacks and certain actions of fraudulent voting activities.
 Provides additional requirements for disclosing officer or director conflicts of interest.
Related to HOA fines and suspensions, the bill:
 Provides that fines may not create a lien against a parcel.
 Provides that a fine or suspension levied for a violation by the HOA board of administration may not be
imposed unless the board first provides at least 30 days' notice to the parcel owner of a hearing before a
committee. If the committee determines that a violation does not exist, then no other action may be taken
related to that alleged violation.
 Allows a member to cure a violation. If a violation is cured before th e hearing, a fine or suspension may not
be imposed. If the violation is cured within 30 days after the notice of imposed fine or suspension, the fine is
reduced by 50 percent and any applicable suspensions must be lifted.
Related to HOA funds, the bill:
 Requires that if an HOA collects a deposit from a member to pay for expenses that may be incurred as a
result of construction on a member's parcel, or other reason for such deposit, such funds must not be
comingled with any other HOA funds.
o The member may request an accounting of such funds and the HOA must remit payment of unused
funds within 30 days after completion.
Related to HOA official records, the bill requires an HOA to allow a member to keep an address different than the
property address to be used for all required notices.
The bill does not appear to have a fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Homeowners’ Associations
A homeowners’ association (HOA) is an association of residential property owners in which voting
membership is made up of parcel owners and membership is a mandatory condition of parcel
ownership. HOAs are authorized to impose assessments that, if unpaid, may become a lien on the
parcel.1
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 association’s governing documents, which include the recorded
covenants and restrictions, together with the bylaws, articles of incorporation, and duly adopted
amendments to those documents.2
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. The powers and duties of an
association include those set forth in the HOA Act and in the governing documents, except as expressly
limited or restricted in the HOA Act.
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 member does not have authority to act for the HOA by virtue of being a
member.3
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, within the Department of Business and Professional Regulation, for certain election and recall
disputes.4
Powers and Duties of Officers and Directors – Current Situation
The officers and directors of an HOA have a fiduciary relationship to the members who are served by
the HOA.5
A director or officer charged by information or indictment with felony theft or embezzlement involving
the HOA’s funds or property is removed from office. The board must fill the vacancy according to
general law until the end of the period of the suspension or the end of the director’s term of office,
whichever occurs first. However, if the charges are resolved without a finding of guilt or without
acceptance of a plea of guilty or nolo contendere, the director or officer must be reinstated for any
remainder of term of office. A member who has such criminal charges pending may not be appointed or
elected to a position as a director or officer.6
1 S. 720.301(9), F.S.
2 See generally ch. 720, F.S.
3 S. 720.303(1), F.S.
4 S. 720.311, F.S.
5 S. 720.303(1), F.S.
6 S. 720.3033(4), F.S.
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 An officer, director, or manager may not solicit, offer to accept, or accept any good or service of value
for which consideration has not been provided for his or her benefit or for the benefit of a member of his
or her immediate family from any person providing or proposing to provide goods or services to the
HOA.7 If the board finds that an officer or director has violated this condition, the board must
immediately remove the officer or director from office. The vacancy must be filled according to law until
the end of the director’s term of office. However, an officer, director, or manager may accept food to be
consumed at a business meeting with a value of less than $25 per individual or a service or good
received in connection with trade fairs or education programs.8
If the HOA enters into a contract or other transaction with any of its directors or a corporation, firm,
association that is not an affiliated HOA, or other entity in which a director is also a director or officer or
is financially interested, the board must:9
 Comply with the requirements for conflicts of interest in a corporation not for profit.10
 Enter certain disclosure requirements into the written minutes of the meeting.
 Approve the contract or other transaction by an affirmative vote of two-thirds of the directors
present.
 At the next regular or special meeting of the members, disclose the existence of the contract or
other transaction to the members. Upon motion of any member, the contract or transaction must
be brought up for a vote and may be canceled by a majority vote of the members present. If the
members cancel the contract, the HOA is only liable for the reasonable value of goods and
services provided up to the time of cancellation and is not liable for any termination fee,
liquidated damages, or other penalty for such cancellation.
Powers and Duties of Officers and Directors – Effect of the Bill
In addition to current requirements, the bill provides that an officer or a director charged by information
or indictment with one of the following crimes must be removed from office, and the vacancy must be
filled as provided by the HOA Act until the end of the officer's or director's period of suspension or the
end of his or her term of office, whichever occurs first:
 Forgery of a ballot envelope or voting certificate used in a homeowners' association election
under s. 831.01, F.S.
 Theft or embezzlement of funds of a homeowners' association under s. 812.014, F.S.
 Destruction of or the refusal to allow inspection or copying of an official record of a homeowners'
association that is accessible to parcel owners within the time periods required by general law in
furtherance of any crime as tampering with physical evidence under s. 918.13, F.S.
 Obstruction of justice under ch. 843, F.S.
If such a criminal charge is pending against the officer or director, he or she may not be appointed or
elected to a position as an officer or a director of any HOA and may not have access to the official
records of any HOA, except pursuant to a court order. However, if the charges are resolved without a
finding of guilt, the officer or director must be reinstated for the remainder of his or her term of office, if
any.
The bill provides that an officer, a director, or a manager who knowingly solicits, offers to accept, or
accepts any thing or service of value or kickback commits a misdemeanor of the first degree, for
amounts less than $1,000, and a felony of the third degree, for amounts $1,000 or more, and is subject
to a civil penalty. The term "kickback" means remuneration, whether in cash or in kind, paid by or on
behalf of a person providing or offering to provide goods or services to an association, the purpose of
7 However, an officer, director, or manager may accept food to be consumed at a business meeting with a value of less
than $25 per individual or a service or good received in connection with trade fairs or education programs . S. 720.303(3),
F.S.
8 S. 720.3033(3), F.S.
9 S. 720.3033(2), F.S.
10 A contract or transaction with a conflict of interest is not voidable if the relationship or interest is disclosed or known to
the board; the board authorized, approved, or ratified it by vote or written consent; or the contract or transaction is fair and
reasonable at the time it is authorized. Such contract or transaction must be authorized, approved, or ratified by a majority
of the directors on the board who have no relationship or interest in such transaction. S. 617.0832, F.S.
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 which is to influence the performance of an act or omission by such association, when the remuneration
is not tax deductible as an ordinary business expense or not supported by consideration of like value.
Such person may be removed from office.
The bill requires directors and officers of an HOA to disclose to the HOA any activity that may
reasonably be construed to be a conflict of interest at least 14 days prior to voting on the subject of
such conflict or entering into such contract. A rebuttable presumption of a conflict of interest exists if
any of the following occurs without prior disclosure to the association:
 A director or an officer, or a relative of a director or an officer, enters into a contract for goods or
services with the HOA.
 A director or an officer, or a relative of a director or an officer, holds an interest in a corporation,
limited liability company, partnership, limited liability partnership, or other business entity that
conducts business with the HOA or proposes to enter into a contract or other transaction with
the HOA.
Criminal Violations for Fraudulent Voting Activities
The bill provides that the following actions relating to HOA elections is a fraudulent voting activity and
constitutes a misdemeanor of the first degree:
 Willfully and falsely swearing to or affirming an oath or affirmation, or willfully procuring another
person to falsely swear to or affirm an oath or affirmation, in connection with or arising out of
voting activities.
 Perpetrating or attempting to perpetrate, or aiding in the perpetration of, fraud in connection with
a vote cast, to be cast, or attempted to be cast.
 Preventing a member from voting, or preventing a member from voting as he or she intended,
by fraudulently changing or attempting to change a ballot, ballot envelope, vote, or voting
certificate of the member.
 Menacing, threatening, or using bribery or any other corruption to attempt, directly or indirectly,
to influence, deceive, or deter a member when voting.
 Giving or promising, directly or indirectly, anything of value to another member with the intent to
buy the vote of that member or another member or to corruptly influence that member or
another member in casting his or her vote. This paragraph does not apply to any food served
which is to be consumed at an election rally or a meeting or to any item of nominal value which
is used as an election advertisement, including a campaign message designed to be worn by a
member.
 Using or threatening to use, either directly or indirectly, force, violence, or intimidation or any
tactic of coercion or intimidation to induce or compel a member to vote or refrain from voting in
an election or on any particular ballot measure.
Fines and Suspension – Current Situation
Owners, tenants, and guests must comply with an HOA’s declaration, bylaws, and rules. HOAs may
levy fines against or suspend the right of a parcel owner, occupant, or a guest of an owner or occupant,
to use the common areas 11 or any other association property for failing to comply with any provision in
the HOA’s governing documents. A suspension for failing to comply with an HOA’s declaration, bylaws,
or rules may not be for an unreasonable amount of time.12
No fine may exceed $100 per violation, although a fine may be levied on the basis of each day of a
continuing violation provided that fine does not exceed $1,000 in the aggregate. However, a fine may
exceed $1,000 if the HOA’s governing documents authorize it. Fines may not become a lien on the
property unless the fines exceed $1,000.13
11 This does not apply to that portion of common areas used to provide access or uti lity services to the parcel. A
suspension may not prohibit an owner or tenant of a parcel from having vehicular and pedestrian ingress to and egress
from the parcel, including, but not limited to, the right to park. S. 720.305(2)(a), F.S.
12 S. 720.305, F.S.
13 S. 720.305(2), F.S.
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 Before an HOA levies a fine or a suspension, it must give the person receiving the fine or suspension at
least 14 days’ notice of an opportunity for a hearing. A fine and suspension committee of at least
three members selected by the board must hold a hearing to reject or approve the fine or suspension.
Board directors, officers, and employees of the HOA and family of such people may not serve on the
committee. The committee must approve the fine or suspension by majority vote otherwise the
proposed fine or suspension may not be imposed.14
A fine is due five days after written notice of the approved fine is provided to the parcel owner,
occupant, or guest. Written notice of the fine or suspension must be provided to the person by mail or
hand delivery.15
If a member is more than 90 days delinquent in paying any fee, fine, or other monetary obligation due
to the HOA, the HOA may suspend the rights of the member, or the member’s tenant, guest, or invitee,
to use common areas and facilities 16 until it is paid in full.17
An HOA may suspend the voting rights of a parcel or member for the nonpayment of any fee, fine, or
other monetary obligation due to the HOA that is more than 90 days delinquent. The suspension ends
upon full payment of all obligations currently due or overdue to the HOA.18
The notice and hearing requirements for levying fines do not apply to a suspension imposed for