Navigating HB 1203: New Changes Impacting Homeowners’ Associations in Florida

Part I: New Educational and Regulatory Requirements for HOA Board Members, Community Association Managers, and Homeowners’ Associations

On July 1, 2024, CS/CS/HB 1203 became effective, which created significant changes impacting homeowners’ associations (“HOA”) in Florida.  Those changes include new educational requirements for community association managers and HOA directors, access to certain HOA records, prohibitions against a HOA limiting or placing requirements on the interior of a home, and prohibitions against a HOA from preventing a homeowner from installing or displaying a vegetable garden.

This blog dives into the new educational requirements and obligations for community association managers and HOA board of directors, as well as new financial reporting requirements for HOAs, new requirements regarding access to HOA official records, and new limitations on imposing fines against homeowners.

New Educational Requirements for Community Association Managers

Community association managers, also known as CAMs, assist HOAs in controlling or disbursing funds, preparing budgets or other financial documents, assist in the noticing or conduct of HOA meetings, coordinate maintenance for the community, and assist with other day-to-day services involved in the operation of the HOA.  See § 468.431(2), Fla. Stat.  CAMs are licensed individuals, who are governed by the Florida Department of Business and Professional Regulation (“DBPR”).  To become a CAM, an applicant must:

• Submit to a background check to determine good moral character;
• Attend a DBPR-approved in-person training; and
• Pass an examination.

CAMs must also complete no more than ten (10) hours of continuing education hours as approved by DBPR to renew and maintain their licenses.  

As of July 1, 2024, CAMs must also:

• Attend in person at least one (1) member meeting or board meeting of the HOA annually; 
• Every two (2) years, a CAM that provides services to an HOA must complete at least five (5) hours of continuing education that pertains specifically to HOAs, three (3) hours of which must relate to recordkeeping; and
• Provide HOA members with:
  • The name and contact information for each CAM or representative of the CAM firm assigned to the HOA; 
  • The CAM’s or CAM representative’s hours or availability; and
  • A summary of the duties for which the CAM or representative is responsible; and

The above information is required to be posted on the HOA website or application. If there is any change to the above information, the CAM is required to update the HOA and its members within fourteen (14) business days after the change.  The CAM or CAM firm is also required to provide the contract between the HOA and the CAM, upon an HOA member’s request.  See Fla. Stat. §§ 468.4334, 468.4337.

New Educational Requirements for HOA Directors

A HOA is administered by an elected board of directors, who are typically homeowners in the community.  As of July 1, 2024, each newly elected or appointed HOA directors must:

• Submit a certification showing satisfactory completion of the educational curriculum administered by a division-appointed education provider within 90 days after the date of election or appointment;
• Complete continuing education annually, as follows:
  • For HOAs with less than 2500 parcels, at least 4 hours of continuing education annually; 
  • Fos HOAs with 2500 parcels or more, at least 8 hours of continuing education annually. See Fla. Stat. § 720.3033.

Notably, HOA directors are no longer permitted to certify in writing that he or she has read the HOA’s declaration, articles of incorporation, bylaws, and current rules, that he or she will work to uphold such documents, and that he or she will faithfully discharge his or her fiduciary responsibility to the HOA’s members. 

New Financial Reporting Requirements

Under Florida law, HOAs are required to complete a financial report for the preceding year within 90 days after the fiscal’s year end, or annually on the date provided in the governing documents.  Prior to July 1, 2024, HOAs were not required to prepare audited financial statements unless the HOA had a total annual revenue of $500,000 or more.  

However, as of July 1, 2024, HOAs are now required to prepare audited financial statements on communities with 1000 parcels or more, regardless of the HOA’s total annual revenue.  HOAs are also prohibited from waiving the annual financial reporting requirements, and are prohibited from preparing a report of cash receipts and expenditures by approval of a majority of voting interests for consecutive fiscal years. See Fla. Stat. § 720.303(7)(a).

New Requirements Regarding Access to Official Records

By January 1, 2025, every HOA with 100 parcels or more must post a current digital copy of certain official records on its website, or make such documents accessible on a mobile device.  Those official records include, the following:

1. HOA’s articles of incorporation;
2. Recorded bylaws of the HOA;
3. Declaration of the HOA;
4. Current rules of the HOA;
5. A list of all current executory contracts or documents which the HOA is a party or under which the HOA or the parcel owners have an obligation or responsibility and, after bidding for the related materials, equipment, or services has closed, a list of bids received by the HOA within the past year;
6. Annual budget and any proposed annual budget;
7. Financial report any monthly income or expense statement to be considered at a meeting;
8. HOA’s current insurance policies;
9. Each of the directors’ certifications that they completed the educational curriculum;
10. All contracts or transactions between the HOA and any director, officer, corporation, firm or association that is not an affiliated HOA or any other entity in which a director of an association is also a director or and officer and has a financial interest; 
11. Any contract or document regarding a conflict of interest or possible conflict of interest;
12. Notice of any scheduled meeting of members and the agenda for the meeting, at least 14 days before such meeting; and
13. Notice of any board meeting, the agenda, and any other document required for such meeting. See Fla. Stat. § 720.303(4)(b).

New Limitations on Imposing Fines Against Homeowners

Homeowners are required to comply with the HOA’s governing documents.  If homeowners fail to comply, then the HOA is permitted to levy fines against the homeowner.  In order to properly levy a fine against a homeowner, the HOA board must provide the homeowner with at least 14 days’ written notice of the homeowner’s right to a hearing, which must be held within 90 days after issuance of the notice.  Within 7 days after the hearing, the committee must provide the homeowner with written notice of the committee’s findings related to the violation, as well as the date the fine must be paid (if applicable), which must be at least 30 days after the notice is delivered.  

However, if a violation has been cured before the hearing, the HOA is no longer permitted to levy a fine.  Further, attorneys’ fees and costs are not permitted to be awarded against the homeowner based on actions that occur before the date set for the fine to be paid. Attorneys’ fees and costs are permitted to accrue after the due date for the fine and time for appeal has expired.  

Further, HOAs are now prohibited from imposing fines for certain violations, including:

• Leaving garbage receptacles at the curb or end of the driveway less than 24 hours before or after the designated garbage collection day; and
• Leaving holiday decorations or lights up longer than indicated in the governing documents, unless such decorations or lights are left up for longer than 1 week after the association provides written notice of the violation to the homeowner. See Fla. Stat. § 720.305.

Conclusion

CS/CS/HB 1203 created significant changes impacting homeowners’ associations in Florida.  In addition to creating new educational requirements for community association managers and board members, new financial reporting requirements, new access to official records requirements, and limitations on imposing fines against homeowners, CS/CS/HB 1203 also created new rights and protections for homeowners. For more information, refer to Part II of this blog series.