HOA oversight overhaul bill clears first House hurdle, but framework concerns persist

A House proposal that would substantially change how Florida handles legal matters involving homeowners’ associations has cleared its first committee stop, where it received both support and scrutiny.

After more than an hour of discussion, members of the Housing, Agriculture and Tourism Subcommittee voted unanimously for the measure (HB 657), but with the caveat from some that it needed more work.

Miami Rep. Juan Porras, the bill’s sponsor, called it “a culmination of frustration and feedback” he has heard from residents across Florida.

“House Bill 657 directly addresses the lack of oversight, the lack of transparency and accountability (for) those that live in homeowners’ associations,” he said.

More than 60% of Florida’s homes are within homeowners’ associations, he added, accounting for more than 8 million homeowners.

It’s an issue many know has long existed, and one Florida’s former condominium ombudsman, Spencer Henning, detailed before a Senate committee more than two years ago. The way laws are currently written — even with legislation recently passed — wrongdoers on condo and homeowner boards have wide loopholes through which to evade punishment or removal, rendering the state agency responsible for their oversight, the Department of Business and Professional Regulation (DBPR), a “toothless tiger.”

Porras’ bill doesn’t aim to do corrective dentistry, but rather supplant the current system with one reliant on the courts. He explained the bill as having three major effects.

First, it would address transparency issues by creating a state-funded court process to address condo and HOA disputes, which would replace an existing pre-lawsuit mediation process required today.

Second, it would provide processes for the dissolution of HOAs. Porras stressed it wouldn’t be one-size-fits-all, and there would be several necessary steps — petition gathering, an election and final approval by a judge — before an organization could be terminated.

And third, the measure would address a lack of accountability that malfeasant HOA board members now enjoy by mandating that HOAs include Kaufman language in their governing documents that require organization bylaws to change in accordance with changes in state law automatically.

For HOAs already in operation, the bill would empower homeowners to compel a vote to amend their governing documents to include the Kaufman language.

Close to a dozen residents spoke about HB 657 during the Wednesday meeting, all but two of them in favor of it. Most detailed frustrating, arduous and often expensive disputes with their HOAs that led to severe financial difficulties, as board members evaded accountability and, in some cases, retaliated against constituents who challenged their authority.

Kimberly McDaniel of the HOA Reform League, which represents thousands of homeowners across Florida, shared how fighting her HOA and “fabricated claims” its members made about her has cost her more than $26,000. She said they’re now pursuing foreclosure on her home, which is fully paid for, and she’s unable to sell or refinance the property.

Jenny Donovan, a St. Johns County resident, spoke of how “reasonable questions” her family asked led to “years of harassment, isolation and intimidation” by the two-member HOA board that oversees her neighborhood.

Other similarly troubling stories followed.

Two residents opposed the legislation, including Coral Springs resident Jonathan Gonzalez, who opened his testimony by complaining that he’d been “terrorized” by his condo association. His dispute with the organization made news in 2023, when he was accused of yelling profanities at association members and spitting at workers — accusations he denied.

Gonzalez argued that while appearing well-intentioned on its face, HB 657 is actually a Trojan horse bill that would strip homeowner protections and open properties to being bought up by large corporations with little concern for residents.

He pointed to the Kaufman language portion, which, if approved, would “hand over a blank check to (the) Legislature” to write future laws undermining homeowner rights. The dissolution portion, meanwhile, could leave properties without management and upkeep, leading to devaluation and a “fire sale environment” for opportunistic real estate investors.

“This bill isn’t designed to save homeowners; it’s designed to destabilize us so corporations can move in,” he said, calling instead for lawmakers to properly empower DBPR so it can enforce the law. “If the DBPR could regulate my hair stylist or my Realtor, why can’t a state agency regulate the people who have the power to foreclose on my home?”

Several members of the panel expressed related concerns. Democratic Rep. Christine Hunschofsky, a former Parkland Mayor, said that while she appreciates Porras’ efforts to tackle the issue — about which she gets calls “all the time” — a provision in the bill allowing an HOA dissolution process to begin with petition approval of just 20% of homeowners could be abused.

Dania Beach Republican Rep. Hillary Cassel said she’s represented several homeowners in HOA disputes while working as a lawyer, and many in her profession simply don’t take those kinds of cases because they’re complicated, work-intensive and can take years to conclude.

St. Petersburg Democratic Rep. Lindsay Cross concurred with Hunschofsky’s assessment, calling the 20% threshold “a pretty low bar.” She added that the bill’s elimination of pre-suit mediation could increase costs for homeowners, who, as Cassel noted, already have a tough time getting legal representation.

Miami Gardens Democratic Rep. Felicia Robinson thanked Porras for working to address the issue, which is a major problem in Miami-Dade County, but questioned whether it will solve things. Florida should strengthen its agencies to enforce the law, she said, not place the burden on residents.

“We need to have true regulation when it comes to our HOAs, and I’m not sure this is going to do it,” she said.

Rep. Michelle Salzman, an Escambia County Republican and the committee’s Chair, called the HOA issue the true “elephant in the room” when it comes to property costs — more impactful than property insurance and property taxes.

She urged committee members who had doubts to vote for HB 657 with an understanding it will be fine-tuned as it progresses through three more stops in the House before reaching a floor vote.

“How many Floridians have access to three branches of government? All of them. How many HOA members have access to three branches of government? Zero,” she said. “They get no recourse at all. None. You heard story after story today from people that are losing their homes to greed, to developers, to bad actors. How do we correct bad actors when we sit back and say, ‘It’s not perfect’?”

Porras has been working to improve the bill. On Wednesday, he presented and received approval for seven amendments dealing with technical changes, conflicts of interest and dissolution processes.

He acknowledged that the bill still isn’t perfect, but called it a step in the right direction. He also defended the plan to replace the DBPR process with one dependent on the courts, contending that he and most homeowners don’t trust the agency to do a better job under Gov. Ron DeSantis.

“That’s not to say it will never happen,” he said. “We will have a new administration in DBPR (and) I am hopeful … that they’ll take this issue seriously after we have a new Governor, not to point fingers.”

HB 657, which does not have a Senate analog, will next go to the House Civil Justice and Claims Committee.