Homeowners Have More Power Than They Think

Homeowner associations (HOAs) play a vital role in managing community properties, ensuring smooth day-to-day operations, and maintaining shared amenities. In Florida, there has been a recent trend in law to improve the rights of property owners within HOAs. For example, in 2024, the Florida legislature passed House Bill 1023 (HB 1023), which overtly detailed a concerted effort to enhance transparency and accountability within the realm of HOA management and HOA Boards of Directors.
Effective July 1, 2024, one significant aspect addressed in HB 1023 is the new obligation under Florida Statute section 720.3032 placed upon management companies to furnish comprehensive information to both HOAs and their respective Boards. This information includes divulging the names and contact details of all property managers, specifying their availability hours, outlining their duties, and providing a copy of the management contract upon request. Notably, these requirements extend not only to the Board but also to all members of the association. Moreover, HB 1023 under Florida Statute section 720.303(2)(c)(1) mandates that such crucial information be readily accessible, typically through the association's website if one is mandated. Specifically, any Association with over 100 properties must make “such information…available to the owners through association’s website.” Any alterations to this information must be promptly updated and disseminated to the HOA Board and all members within 14 business days, ensuring transparency and keeping the community informed.

In addition to these transparency measures, HB 1023 under Florida Statute section 720.3033 imposes continuing education requirements on property managers involved with HOAs. Specifically, managers are required to undertake at least five hours of continuing education every two years, with a focus on HOA-related topics. Of these five hours, a minimum of three must pertain to recordkeeping, underscoring the importance of meticulous documentation within HOA management practices.
These provisions not only aim to foster greater transparency and accountability within HOA management but also to equip property managers with the requisite knowledge and skills to effectively navigate the complexities of community association governance.

HB 1023 does not only better hold property managers accountable to HOAs. Additionally, HOA Board Members are now held to a higher standard than ever before under Florida Statute section 720.3033. It is crucial for those serving on the Board to be well-versed in the intricacies of HOA governance. To better ensure just that, the legislative amendments have now introduced some significant changes. No longer can a simple signature affirming the reading of governing documents suffice. Instead, Board members must now actively engage in educational courses. Within 90 days of election or appointment, completion certifications must be submitted which validate the Board Member’s understanding of the HOA’s covenants and other provisions. These certifications must be retained by the association for “5 years after the director’s election.” Furthermore, these certifications aren't just a one-time deal. While they're valid for four years, Board Members are required to renew this thereafter. And here's the kicker: the educational requirements vary based on the size of the HOA. For associations with fewer than 2500 homes, it's a minimum of four hours annually. But for larger communities, those with 2500 or more homes, the bar is raised to a minimum of eight hours each year. It's all about ensuring that your Board members stay sharp and equipped to tackle the challenges ahead.

The amendments don't just stop at educational requirements; they also emphasize the importance of legal compliance within HOAs. Gone are the days where a mere glance at governing documents by Board members would suffice. With these changes, there's a tangible shift towards proactive engagement with legal nuances. Board members aren't just expected to be familiar with the rules; they're now accountable for actively participating in ongoing legal education.

Whether your HOA boasts a modest number of homes or stands as a sprawling community, compliance is legally imperative so a property owner can use and enjoy it as intended. From annual legal education commitments to timely renewal of certifications, staying on the right side of the law isn't just a best practice—it's a necessity for the seamless functioning of your HOA. By understanding and embracing these legal obligations, you're not just safeguarding the interests of your community; you're paving the way for a more informed, empowered, and legally compliant HOA Board and Management Company.