Homeowners associations in Florida have a lot of governance areas that must be considered in everything they do. It stands to reason that community homeowners association insurance requirements are as detailed as they are.

In any case, guidance in different areas of management comes from the Florida Homeowners Association Act Fla. Stat. §720.301, et. seq.

This is what will speak to how different non-profit residential homeowners associations are to be formed, managed, and operated and is divided into three parts:

  1. Part i - General provisions
  2. Part ii - Disclosure prior to sale of residential parcels
  3. Part iii - Covenant revitalization

Some changes have been made to these Florida statutes and they went into effect on October 1, 2023. Today is intended to cover a few of the HOA fundamentals across existing and new elements.

Meeting Notices

This is one of the reviewed sections of the act and now it requires that meeting notes be adjusted to make specific references to agenda items.

The verbiage can be considered on the broad side since the term "specifically identify is left up to the interpretations. Functionally, the expectation is that everything that is to be covered will be included.

HOA Member Deposits

Member deposits are also one of the areas that saw some change. They are to be handled as follows:

  • Should the HOA collect any kind of deposit from a member, the funds are to be separate from any other association funds.
  • Once the event that necessitated the deposit has passed, the HOA is expected to return the funds within 30 days of the said passing.
  • Members are allowed to request accounting statements from the HOA concerning the funds that have been deposited. The documentation must be handed over within seven days of the request being made.

Financial Statements

Financial statements are expected to be prepared and filed yearly. Here are some preparation guidelines:

  1. A report of cash receipts and expenditures should be filed where the figure falls below $150,000 annually
  2. Compiled financial statements must be filed between $150,000 and $300,000
  3. Reviewed financial statement filing is to take place between $300,000 and $500,000
  4. For those over $500,000, audited financial statements are required to be filed.

Rules for the Board of Directors

This is yet another of the modified elements that will apply to each board member. The idea here is to outline the kinds of conduct that are prohibited. This includes:

  • Forging of any voting certificate or ballot envelope that is a part of HOA election procedures
  • Obstruction of justice
  • Embezzlement or theft of any HOA funds
  • Refusing to allow copies or inspection of official records or destroying the said records in furtherance of crime.

With the revisions made. Any director or officer who commits any of these acts is to be removed immediately. Additionally:

  • Any developer-appointed HOA director must make the conflict of interest clear at least 14 days before any contract is entered into or any voting interests take place.
  • Monetary damages are applied to any manager, director, or officer who accepts, seeks, or offers acceptance of bribes.
  • Any officer or director placed by developer appointment must annually make a relationship disclosure concerning the developer. This is to be done every year when they are serving as directors and officers.

Presumptive conflict of interest is now a provision when a director, officer, or relative has an interest in a business that either is proposing contract entry with the HOA or already does business with it. Alternatively, if such a person enters into a contract for service or goods with the association, this clause also applies.

Suspensions and Fines

The act allowed for a community association to levy fines against members and even indicated what those fines should be. With the revisions, the board members are limited in their applications of fines in the following ways:

  1. No fines or suspensions can be imposed unless there is 14 days' notice given to the homeowner using the designated mailing address or email address that's in the official records of the HOA. Violation notices must include a specific description, remediating action, and where and when any applicable hearing is to be held.
  2. If there is any delinquent payment suspension, a written notice must be provided to the parcel owner.
  3. Should a hearing occur, there must be a notice to the owner of any approved or rejected fines thereafter and how the violation can be remediated. This must be sent to the designated email or mailing address on record.
  4. Should a violation be discovered, the suspension or fine must be approved through a majority vote process.

Make Management Easier with Intuitive HOA Software

From filing initial governing documents to the official records of the county to staying on top of other Florida HOA laws to managing complaints and collecting HOA dues, management can be pretty tough. Thankfully DoorLoop has an incredible software solution to make it much smoother. Here are a few of the key features:

  1. Automated payments - Make manual payments of homeowner association fees, rent, amenities, fines, etc., a thing of the past.
  2. Accounting - Capitalize on all the key record-keeping features as well as integrations with Quickbooks and bank accounts.
  3. User count - An unlimited number of administrative users may be added.
  4. Free website - Customized webpage complete with a resident portal for request submission and communication
  5. Request management - Handle architectural requests, maintenance requests, and more!
  6. Communication - Tailored to your convenience. Choose from phone, text, email, or portal messages

Wrapping Up the HOA Florida Statutes

HOA board members have a lot to balance. From the moment where they start seeking HOA board member certification for HOA, condo, co-op, etc., it becomes almost immediately apparent. The extent of the Florida Homeowners Association Act reinforces this.

While the provisions above are essential, they are not exhaustive. Check out the full compilation of applicable statutes to keep yourself informed.

Finally, why not schedule a free demo of DoorLoop's HOA software solution? Something should at least be easy, right? It may as well be the administrative element of things!

Frequently Asked Quesitons

David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!

Legal Disclaimer

The information on this website is from public sources, for informational purposes only and not intended for legal or accounting advice. DoorLoop does not guarantee its accuracy and is not liable for any damages or inaccuracies.