To the editor:

Recently a bill (HB 657) was introduced into the Florida legislature. This bill is intended to make it  easier to disband HOAs. This bill, if enacted, will be a disaster for owners of condos (COA) or single family homeowners in an HOA.

While HB 657 is intended to provide homeowners with a pathway to accountability and dissolution of dysfunctional HOAs, the bill will ultimately destabilize neighborhoods, create legal and financial chaos, and threaten the value of the very properties it aims to protect.

Arguments against the passage of HB 657 are numerous. I researched using AI. Here are a few:

1. Risk of neighborhood destabilization and loss of essential services

Dissolving a homeowners’ association would lead to widespread instability.

• Complex infrastructure management: HOAs are responsible for managing complex, long-term infrastructure and common elements, which HB 657 does not fully account for. These include:

~ Common roof lines, sidewalks, and gutters.

~ Maintenance of private roads and shared recreational amenities such as a clubhouse, pool, spa, tennis courts, etc.

~ Compliance with surface water management permits and other long-term maintenance obligations.

• Transfer of responsibility: Without the HOA, the responsibility for all common-area maintenance, services (like trash removal) , and upkeep would fall to individual property owners or, potentially, the local municipality.

• Inadequate municipal support: Local governments may be reluctant to approve dissolution because HOAs handle expenses that would otherwise fall to them. If local government does assume responsibility for common elements, the neighborhood would likely have to wait its turn for public services, which were previously managed and funded privately.

2. Decline in property values and loss of salability

The primary function of a well-run HOA is to preserve community standards and maintain curb appeal, which directly supports property values and stability. Dissolving the association puts this value at risk.

~ Buyer concerns: Dissolution can impact property values and make homes difficult to sell, as prospective buyers may be hesitant about purchasing a home in a community lacking the standard assurances of maintenance and enforceable rules.

~ Lender Risk: HOAs contribute value and predictability to a community. Mortgage companies often consider HOA status and financial health when underwriting loans. Eliminating the HOA could compromise home values and price growth, leading to stricter lending guidelines and reducing the pool of potential buyers.

3. Increased legal and financial liability for individual homeowners

Dissolution transfers legal and financial exposure from a corporate entity to the individual homeowners.

• Personal liability: If the HOA is dissolved, common areas may become “joint and severally owned” by the homeowners. This means if a person is injured in a former common area (like a park or sidewalk), individual homeowners could be sued personally, losing the legal protection the HOA entity provided.

• Financial burden: The process of dissolution is complex and can be highly expensive, involving significant legal fees and the need for a strong consensus (a two-thirds vote of all voting members is required).

• Unsettled debts: While the bill requires a termination trustee to sell assets and pay lawful debts, if the HOA fails to settle all debts, board members and even individual homeowners may be held liable.

I would encourage every lawmaker to consider the negative impact that this law would have on tens of thousands of COA and HOA owners that reside in your districts.

If you are an owner with a bad HOA or COA run for office at the next election and make changes for the better. Be part of the solution. And encourage like-minded friends to do the same.

George Starner

Cape Coral