Dispute with HOA? There could be a special court to handle your case very soon

A new bill seeks to substantially change how Florida handles legal disputes involving homeowner's associations and residents by taking matters “away from administrative bodies” and straight into a specialized court system. The proposed legislation, dubbed House Bill 657, if implemented, will impact 8 million homeowners in the state, as over 60% of Florida's homes operate within HOAs, The US Sun reported. The changes were put forward by members of the Housing, Agriculture, and Tourism Subcommittee in Florida, and the bill has cleared the first committee stop, and further talks are to be held soon.

In a move to empower homeowners and increase transparency and accountability, State Representative Juan Carlos Porras (R-Miami) unveiled House Bill 657, aimed at overhauling the governance of community associations in Florida. According to the 32-page document, one of the significant changes proposed is the removal of required mediation before lawsuits can be filed against community associations, and the establishment of a special community association court program, which will oversee disputes and ensure that associations follow the new guidelines.

Laying out the changes, Senator Porras explained their multi-layered benefits. Porras stated that the state-funded court process will address transparency issues in condo and HOA disputes by replacing the lengthy pre-lawsuit mediation process that exists today. Next, the legislation would provide processes for dissolution of HOAs if residents follow the due process that includes starting a petition, an election, and gaining final approval before a judge. This would empower homeowners to change their HOAs if they are unhappy with them or if they fail to meet the set standards.

Lastly, the bill seeks to address a lack of accountability that "malfeasant HOA board members enjoy" by mandating that HOAs include 'Kaufman language' in their governing documents, as per floridapolitics.com. Kaufman language refers to specific phrasing that HOAs can change as they see fit, which many residents consider unfair. Senator Porras put forward the motion, describing it as “a culmination of frustration and feedback” that he keeps regularly receiving from residents all across the state.

Residents present at the meeting spoke about several issues, detailing frustrating and expensive disputes with their HOAs that led to severe financial difficulties, The Sun reported. They explained the board members evaded accountability and, in some cases, retaliated against constituents who challenged their authority. Thus, Porras detailed that the House Bill 657 directly addresses the lack of oversight, the lack of transparency and accountability, and the lawmakers hope that the changes will provide relief to Floridians by creating a one-stop, state-funded court process to deal with disputes.

The Florida Politics archive mentioned that Shutts & Bowen attorney Spencer Hennings previously detailed that these issues have persisted for years, and the current laws, including the recently passed legislation, have loopholes that wrongdoers and homeowner boards exploit to evade punishment or removal. He stated that the loopholes render the Department of Business and Professional Regulation, which is responsible for their oversight, a "toothless tiger".

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