The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Fiscal Policy
BILL: CS/CS/SB 1114
INTRODUCER: Fiscal Policy Committee; Regulated Industries Committee; and Senator Rodriguez
SUBJECT: Homeowners' Associations
DATE: April 26, 2023 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Oxamendi Imhof RI Fav/CS
2. Oxamendi Yeatman FP Fav/CS
3.
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 1114, which the bill provides may be cited as “Homeowners’ Association Bill of
Rights,” revises the requirements for the governance and regulation of homeowners’ associations
to:
 Require all notices for homeowners’ association board meetings to specifically identify the
agenda items for the meetings;
 Provide that an officer or director must be removed from office, and their access to official
records denied, if charged with the crimes of forgery of a ballot envelope or voting certificate
used in a homeowners' association election, theft or embezzlement of association funds,
destruction of or refusing to allow inspection of association records, if such records are
accessible by association members, in furtherance of any crime; or obstruction of justice;
 Revise the requirements for the association’s use of a member’s e-mail to send notices,
including allowing a member to designate an address different than the property address for
all required notices;
 Require that, if an homeowners’ association 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 association funds,
the member may request an accounting of such funds, and the association must remit
payment of unused funds within 30 days after completion;
 Provide that an officer, director, or manager who accepts kickbacks is subject to monetary
damages under s. 617.0834, F.S., relating to the conditions imposing civil liability on the
officers and directors of corporations and associations not for profit;
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 Require directors and officers of an association, including a developer-controlled association,
to disclose specified activities which may pose a conflict of interest;
 Clarify that a developer’s appointment of an officer or director does not create a presumption
that the officer or director has a conflict of interest with regard to the performance of his or
her official duties;
 Revise the notice requirements for imposing and collecting fines, including providing
members notice of how to cure a violation, if applicable;
 Provide criminal prohibitions related to fraudulent voting activities that are punishable as
first degree misdemeanors, including preventing members from voting, and menacing,
threatening, or using bribery to directly or indirectly influence or deter a member from
voting.
The bill takes effect October 1, 2023.
The Division of Florida Condominiums, Timeshares, and Mobile Homes within the Department
of Business the Professional Regulation has not provided a fiscal impact analysis for CS/CS/SB
1114. See Section V. Fiscal Impact Statement, C. Government Sector Impact.
II. Present Situation:
Homeowners’ Associations
Chapter 720, F.S., provides statutory recognition to corporations that operate residential
communities in Florida as well as procedures for operating homeowners’ associations. These
laws protect the rights of association members without unduly impairing the ability of such
associations to perform their functions.1
A “homeowners’ association” is defined as a:2
Florida corporation responsible for the operation of a community or a
mobile home subdivision in which the voting membership is made up of
parcel owners or their agents, or a combination thereof, and in which
membership is a mandatory condition of parcel ownership, and which is
authorized to impose assessments that, if unpaid, may become a lien on
the parcel.
Unless specifically stated to the contrary in the articles of incorporation, homeowners’
associations are also governed by ch. 607, F.S., relating to for-profit corporations, or by ch. 617,
F.S., relating to not-for-profit corporations.3
Homeowners’ associations are administered by a board of directors whose members are elected.4
The powers and duties of homeowners’ associations include the powers and duties provided in
ch. 720, F.S., and in the governing documents of the association, which include a recorded
declaration of covenants, bylaws, articles of incorporation, and duly-adopted amendments to
1
See s. 720.302(1), F.S.
2
Section 720.301(9), F.S.
3
Section 720.302(5), F.S.
4
See ss. 720.303 and 720.307, F.S.
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these documents.5 The officers and members of a homeowners’ association have a fiduciary
relationship to the members who are served by the association.6
Unlike condominium associations, homeowners’ associations are not regulated by a state agency.
Section 720.302(2), F.S., expresses the legislative intent regarding the regulation of
homeowners’ associations:
The Legislature recognizes that it is not in the best interest of
homeowners’ associations or the individual association members thereof
to create or impose a bureau or other agency of state government to
regulate the affairs of homeowners’ associations. However, in accordance
with s. 720.311, [F.S.,] the Legislature finds that homeowners’
associations and their individual members will benefit from an expedited
alternative process for resolution of election and recall disputes and presuit
mediation of other disputes involving covenant enforcement and
authorizes the department to hear, administer, and determine these
disputes as more fully set forth in this chapter. Further, the Legislature
recognizes that certain contract rights have been created for the benefit of
homeowners’ associations and members thereof before the effective date
of this act and that ss. 720.301-720.407[, F.S.], are not intended to impair
such contract rights, including, but not limited to, the rights of the
developer to complete the community as initially contemplated.
The Division of Florida Condominiums, Timeshares, and Mobile Homes (division) within the
Department of Business the Professional Regulation has limited regulatory authority over
homeowners’ associations. The division’s authority is limited to the arbitration of recall election
disputes.7
For ease of reference to each of the topics addressed in the bill, the Present Situation for each
topic will be described in Section III of this analysis, followed immediately by an associated
section detailing the Effect of Proposed Changes.
III. Effect of Proposed Changes:
Section 1 of the bill provides that the act may be cited as the “Homeowners’ Association Bill of
Rights.”
Board Meeting Notices
Present Situation
Section 720.303(2)(c), F.S., requires homeowners’ associations to give notice of all board
meetings to parcel owners and members. Notices of all board meetings must be posted in a
conspicuous place in the community at least 48 hours in advance of a meeting, except in an
5
See ss. 720.301 and 720.303, F.S.
6
Section 720.303(1), F.S.
7
See s. 720.306(9)(c), F.S.
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emergency. As an alternative to posting, notice of each board meeting must be mailed or
delivered to each member at least 7 days before the meeting, except in an emergency. In
communities with more than 100 members, the association bylaws may provide for a reasonable
alternative to posting or mailing of notice for each board meeting, including publication of
notice, providing a schedule of board meetings, or the conspicuous posting and repeated
broadcasting of the notice on a closed-circuit cable television system serving the homeowners'
association. An association may also, by rule, adopt a procedure for conspicuously posting the
meeting notice and the agenda on the association's website or an application that can be
downloaded on a mobile device for at least the minimum period of time for which a notice of a
meeting is also required to be physically posted on the association property.
Section 718.112(2)(c)1., F.S., requires all notices for condominium association board meetings
to specifically identify the agenda items for the meetings. Currently, notices for homeowners’
association board meeting are not required to specifically identify the agenda items for the
meetings.
Effect of Proposed Changes
The bill amends s. 720.303(2)(c)1., F.S., to require all notices for homeowners’ association board
meetings to specifically identify the agenda items for the meetings.
Director and Officer Fiduciary Duty and Prohibited Acts
Present Situation
General Standards for Directors
Section 617.0830(1), F.S., requires a director, including as a member of a committee, to
discharge his or her duties in good faith, with the care an ordinarily prudent person in a like
position would exercise under similar circumstances, and in a manner he or she reasonably
believes to be in the best interests of the corporation.
Director Conflicts of Interest
Section 617.0832, F.S., provides for the process for the disclosure and approval of conflicts of
interest related to contracts between the board of a not-for-profit corporation and a member or
members of the board. Section 617.0832(1), F.S., provides that such a contract is not void or
voidable if:
 The relationship is disclosed to the board or committee that approves or ratifies the contract
or transaction by a vote or consent that does not count the interested director or directors;
 The fact of such relationship or interest is disclosed or known to the members of the board or
committee entitled to vote on such contract or transaction, if any, and they authorize,
approve, or ratify it by vote or written consent; or
 The contract or transaction is fair and reasonable as to the corporation at the time it is
authorized by the board, a committee, or the members.
Sections 617.0832(2) and (3), F.S., require an affirmative vote of a majority of the directors on
the board of directors, or on the committee, who have no relationship or interest in the
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transaction or contract. The contract or transaction may not be approved or ratified by a single
director. A quorum is present for the purpose of taking action if a majority of the directors who
have no relationship or interest in the transaction vote to authorize, approve, or ratify the
transaction. The presence of, or a vote cast by, a director having a relationship or interest in the
transaction does not invalidate the approval or ratification if the transaction is otherwise
authorized, approved, or ratified as provided in s. 617.0832(1), F.S.
Civil Liability - Officers and Directors
Section 617.0834, F.S., relates to the provisions for the civil liability of officers and director of
not-for-profit corporations and associations.8 Section 617.0834(1), F.S., provides that officers
and directors of certain not-for-profit corporations and associations are not personally liable for
monetary damages to any person for any statement, vote, decision, or failure to take an action,
regarding organizational management or policy by an officer or director, unless the officer or
director:
 Breached or failed to perform his or her duties as an officer or director; and
 Breached or failed to perform his or her duties, and the breach constitutes:
o A criminal violation, unless he or she had reasonable cause to believe his or her conduct
was lawful or had no reasonable cause to believe his or her conduct was unlawful.9
o A transaction from which he or she derived an improper personal benefit, directly or
indirectly; or
o A recklessness or an act or omission committed in bad faith or with malicious purpose, or
in a manner exhibiting wanton and willful disregard of human rights, safety, or property.
Fiduciary Duties in Homeowners’ Associations
Officers and directors of a homeowners’ association have a fiduciary relationship to the unit
owners, and may be sanctioned for breach of their fiduciary duty.10
Section 720.3033(2), F.S., requires homeowners’ associations, if they enter into a contract or
other transaction with any of their directors or a corporation, firm, or association that is not an
affiliated homeowners' association, or other entity in which an association director is also a
director or officer or is financially interested, to:
 Comply with conflict of interest procedures outlined in s. 617.0832, F.S.;
 Comply with disclosure requirements outlined in s. 617.0832, F.S.;
 Approve the contract or transaction by a two-thirds vote of the directors present; and
 Disclose the contract or transaction at the next regular or special meeting of the members.
If any member makes a motion to cancel the contract or transaction at the next regular or special
meeting of the members, the contract may be canceled by a majority vote of the members
present. If the contract is canceled, the association is only liable for the reasonable value of
8
Corporations that operate residential homeowners' associations are governed by ch. 720, F.S., relating to homeowners’
associations, and are subject to part I of ch. 607, F.S., the Florida Business Corporation Act, or ch. 617, F.S., relating to
corporations not for profit.
9
Section 617.0834, F.S., does not provide criminal penalties or reference the criminal law that is violated by the officer’s or
director’s breach or failure to perform his or her duties.
10
Section 720.303(1), F.S.
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goods and services previously provided and is not liable for any fees or damages connected to
the cancellation.11
Section 720.3033(3), F.S., prohibits officers, directors, and managers of a homeowners’
association from soliciting or accepting anything of value for his or her benefit, or the benefit of
any member of his or her immediate family, from any person providing or offering to provide
goods or services to the association. The board must immediately remove from office any officer
or director upon a finding by the board that the officer or director has violated this subsection.
This prohibition does not apply to accepting food to be consumed at a business meeting with a
value of less than $25 per individual or services or items in connection to trade fairs or education
programs.
Section 720.3033(4), F.S., requires a board to immediately remove from office any officer or
director who is charged with felony theft or embezzlement involving association funds. If the
charges are resolved without a finding of guilt or without acceptance of a plea of guilt or nolo
contendere, the director or officer shall be reinstated for any remainder of his or her term of
office.
Section 720.3033(5), F.S., requires homeowners’ associations to maintain insurance or fidelity
bonding for anyone who controls or disburses association funds, which includes persons
authorized to sign checks on behalf of the association, and the president, secretary, and treasurer
of the association. The association must bear the cost of the bond or insurance.
Effect of Proposed Changes
The bill amends s. 720.3033(3), F.S., to provide that an officer, director, or manager who
knowingly solicits, offers to accept, or accepts any thing or service of value or kickback for
which consideration has not been provided for his or her own benefit or that of his or her
immediate family, from any person providing o