F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 173 2024
1 A bill to be entitled
2 An act relating to not-for-profit corporations that
3 operate residential homeowners' associations; amending
4 s. 720.303, F.S.; providing requirements for not-for-
5 profit corporations that operate residential
6 homeowners' associations; providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Subsection (1) of section 720.303, Florida
11 Statutes, is amended to read:
12 720.303 Association powers and duties; meetings of board;
13 official records; budgets; financial reporting; association
14 funds; recalls.—
15 (1) POWERS AND DUTIES.—
16 (a)1. An association that which operates a community as
17 defined in s. 720.301, must be operated by an association that
18 is a Florida corporation. After October 1, 1995, The association
19 must be incorporated and the initial governing documents must be
20 recorded in the official records of the county in which the
21 community is located. A not-for-profit corporation incorporated
22 under chapter 617 that operates an association must do all of
23 the following:
24 a. Donate or use at least 15 percent of the association's
25 total annual income to benefit the community in the county in
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26 which the community served by the association is located.
27 b. Maintain, and make available upon request,
28 documentation and records detailing how such funds were used or
29 where such funds were donated.
30 2. An association may operate more than one community.
31 3. The officers and directors of an association have a
32 fiduciary relationship to the members who are served by the
33 association.
34 4. The powers and duties of an association include those
35 set forth in this chapter and, except as expressly limited or
36 restricted in this chapter, those set forth in the governing
37 documents.
38 (b)1. After control of the association is obtained by
39 members other than the developer, the association may institute,
40 maintain, settle, or appeal actions or hearings in its name on
41 behalf of all members concerning matters of common interest to
42 the members, including, but not limited to, the common areas;
43 roof or structural components of a building, or other
44 improvements for which the association is responsible;
45 mechanical, electrical, or plumbing elements serving an
46 improvement or building for which the association is
47 responsible; representations of the developer pertaining to any
48 existing or proposed commonly used facility; and protesting ad
49 valorem taxes on commonly used facilities.
50 2. The association may defend actions in eminent domain or
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51 bring inverse condemnation actions.
52 3. Before commencing litigation against any party in the
53 name of the association involving amounts in controversy in
54 excess of $100,000, the association must obtain the affirmative
55 approval of a majority of the voting interests at a meeting of
56 the membership at which a quorum has been attained.
57 4. This paragraph subsection does not limit any statutory
58 or common-law right of any individual member or class of members
59 to bring any action without participation by the association.
60 (c) A member does not have authority to act for the
61 association by virtue of being a member. An association may have
62 more than one class of members and may issue membership
63 certificates.
64 (d) An association of 15 or fewer parcel owners may
65 enforce only the requirements of those deed restrictions
66 established before prior to the purchase of each parcel upon an
67 affected parcel owner or owners.
68 Section 2. This act shall take effect July 1, 2024.
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Statutes affected:
H 173 Filed: 720.303