New Law Holds Homeowners Associations to a Higher Standard

Do you live in a community with a homeowners association (HOA)? Almost 45% of Florida residents do! The intent of a HOA is to foster conformity and a sense of community through architecture and aesthetics. HOAs also collect dues to maintain common areas and amenities such as pools, gyms and clubhouses. 

Anyone who buys property in an HOA subdivision automatically becomes a member and must follow its restrictions and covenants. In fact, home buyers need to consider HOA fees as part of their purchase price.

HOA rules govern everything from color schemes to decorations, landscaping, parking restrictions, noise complaint policies, home occupancy limits, vacation rentals and more. And, the HOA can impose fines against residents who violate the rules.

Over the years, homeowners have complained that HOAs have grown out of control and lack accountability and transparency. Residents have accused some associations of being so petty that they’re being told what kind of grass to grow and receiving fines for weeds or discolored lawns.

In July of 2024, a new state law limiting the power of homeowner associations was passed limiting the power of HOAs. For some homeowners, this may  bring relief. Many homeowners have complained about petty and arbitrary rules, selective enforcement and excessive fines.

The law, HB1203, took effect July 1. It’s creating big changes in how the associations, known as HOAs, run neighborhoods in Ponte Vedra Beach and across Florida. 

Under the new law, HOAs may not:

• Unduly interfere with property usage that doesn't affect the community's appearance from a public point of view– in other words, areas inside a structure or that aren’t visible from the street, a neighbor's property or an adjacent common area. This means no longer banning vegetable gardens or clotheslines in a backyard or requiring review and approval of plans for central air conditioning, refrigeration, heating or ventilation systems. 
• Arbitrarily enforce rules on some residents but not others.
• Ban homeowners or their guests from parking personal, business or first responder vehicles in their driveways or areas where the state, county or city would let them park. 
• Prohibit contractors or workers from the homeowner's property.
• Fine residents for leaving garbage cans at the curb within 24 hours of scheduled collection or leaving holiday lights or decorations up past the HOA's rules without notice. Upon notice, the homeowner will have one week to take them down.
• Issue fines more than $100 per violation or more than $1,000 total if daily fines are levied.
• Put a lien in a parcel for fines of less than $1,000.
• Impose a fine or suspension if a violation is resolved before the hearing or in a manner specified in the written notice.

Under the new law, HOAs must: 

• Be transparent with rules and meetings and stay involved. HOA managers or representatives must attend, in person, at least one annual member or board meeting.
• Train leaders. A newly elected or appointed director must, within 90 days, complete education on financial literacy and transparency, recordkeeping, how to impose fines and meeting requirements.
• Post on its website the name and contact information of every manager or representative with their hours of availability and a summary of their duties. The information must also be kept current. 
• Be accountable. An HOA officer, director or manager who solicits offers or accepts kickbacks commits a third-degree felony and must immediately be removed from office.
• Keep official records (bylaws and amendments, articles of incorporation, declaration of covenants, current rules, meeting minutes, insurance policies, contracts, financials, budgets, tax returns, voting records, etc.) for at least seven years or face a first-degree misdemeanor.
• Provide a copy of the contract between the manager or management firm and the HOA and keep it with the HOA records.
• Post all rules, covenants, budgets and related documents on its website by Jan. 1, 2025, if the community has more than 100 parcels.
• Prepare audited financial statements if the community has at least 1,000 parcels.
• Provide prominent notice and agendas on its website for scheduled meetings at least 14 days in advance. Post an online notice at least seven days in advance of any meeting on a document that will be considered and voted on. 
• Make official records available to a parcel owner within 10 business days of a written request. If not, the HOA (depending on the severity of the violation) may pay damages and face charges ranging from a second-degree misdemeanor to a third-degree felony.
• Make available, within five business days, any law enforcement agency subpoenas for records. 
• Provide homeowners with a detailed accounting of any money owed on their parcel within 15 business days of a request. Failure to comply may result in waiving outstanding fines older than 30 days. 

If you have any questions about homeowner’s associations in our area, please reach out to the Lisa Barton Team.