Florida House Passes Sweeping HOA Reforms Empowering Treasure Coast Homeowners

Homeowners in Martin, St. Lucie and Indian River counties could gain new power to dissolve dysfunctional HOA boards and resolve disputes through a state-funded court process under a sweeping reform bill the Florida House passed 108-2 Thursday.

The measure, HB 657, now heads to the Senate, where a companion bill has been slower to advance. If signed into law, it would directly affect the tens of thousands of Treasure Coast residents who live in HOA-governed communities — from gated subdivisions in Port St. Lucie to condo complexes along the Indian River County barrier island and deed-restricted neighborhoods throughout Martin County.

The bill would make three major changes to state law. It would replace the existing pre-lawsuit mediation process for HOA and condo disputes with a state-funded court process. It would create a multi-step path for homeowners to dissolve an HOA — requiring a petition, an election and final approval by a judge. And it would mandate that HOAs include so-called "Kaufman language" in their governing documents, requiring bylaws to automatically update in accordance with changes in state law.

Miami Republican Rep. Juan Porras, the bill's sponsor, called HOAs in their current form "a failed experiment" that have "run amok" due to regulatory loopholes. He described the bill as the largest reform of its kind.

"We have allowed, for too long in this chamber, to have a lack of complete oversight over what I believe is the smallest yet most powerful form of government," Porras said on the House floor.

The bill addresses longstanding enforcement problems detailed by Florida's former condominium ombudsman, Spencer Hennings, who told a Senate panel in late 2023 that his agency and others with oversight responsibilities were "toothless" in addressing malfeasance. Under current law, even when homeowners successfully recall a board member, the member can refuse to step down. The dispute then goes to nonbinding arbitration through the Department of Business and Professional Regulation, often forcing residents into costly circuit court lawsuits that can take years.

Not all stakeholders support the measure. During a committee hearing in January, a condo association member warned the dissolution provision could leave properties without management, leading to devaluation and what he called a "fire sale environment" for real estate investors.

The bill awaits action in the Senate.

This article was generated with AI assistance using publicly available information. It was reviewed and approved by a human editor before publication. TC Sentinel uses AI writing tools in accordance with FTC guidelines.