TAMPA, Fla. — A bill moving through Florida’s legislative session could dramatically change the balance of power between homeowners and homeowners associations (HOAs).
House Bill 657, proposed by State Rep. Juan Porras of Miami, would give Florida communities the ability to dissolve their HOAs — a move that is already generating significant discussion among real estate professionals across the state.
According to its backers, House Bill 657 aims to “level the playing field” between HOAs and homeowners.
What You Need To Know
It would eliminate mandatory mediation for disputes between homeowners and HOAs
Instead, it would establish a type of HOA community court system intended to reduce costly legal fees for homeowners
Most notably, it would allow residents to dissolve their HOA altogether
Under the bill, dissolving an HOA would require a multi-step process including a petition representing 20% of the community, and a full membership vote, with a 2/3 majority required
READ HB 657: Community Associations
While some see the bill as a way to hold poorly managed HOAs accountable, others are raising concerns about what would happen after an HOA is dissolved.
Tampa Realtor Craig Kincheloe of the Kincheloe Group says the proposal sends a message to “bad-acting” associations but lacks guidance for communities once an HOA is eliminated.
“To just eliminate HOAs without having anything in place to support them — I mean, a lot of these neighborhoods have pools, they have playgrounds, they have things that there is real cost to maintaining those,” Kincheloe said. “Those costs are still out there and still have to be paid if you want these communities maintained.”
Without an HOA structure, communities would need an alternative way to fund and manage shared amenities and common areas.
According to Kincheloe, more than two million single-family homes in Florida are located in HOA communities. In the Tampa area alone, he says more than half of the homes currently on the market are in HOA neighborhoods.
That means House Bill 657 could have a significant impact on property values — not just in Tampa Bay, but statewide.
House Bill 657 still faces hurdles in Tallahassee.
The legislation has passed two House committees since late January and is currently before the Budget Committee. However, for the bill to move forward, a companion measure must be filed in the Florida Senate — and so far, that has not happened.
As the legislative session continues, homeowners, Realtors, and HOA boards across Florida will be watching closely to see whether the proposal gains further momentum.