LEGISLATIVE SESSION 2026

ANALYSIS OF BILL HB 465

+ SB 822 (Identical)

Community Association Management

GENERAL BILL HB 465  + SB 822

An Act Relating To Community Association Management  -- introduced by Representative Danny Nix + Senator Joe Gruters

AN ACT RELATING TO COMMUNITY ASSOCIATION MANAGEMENT TO REQUIRE (1) CERTAIN COMMUNITY ASSOCIATIONS TO CONTRACT WITH COMMUNITY ASSOCIATION MANAGEMENT FIRMS, (2) TO REQUIRE COMMUNITY ASSOCIATION FIRMS TO POSSESS ALL APPLICABLE LICENSES, AND (3)  PROVIDE THAT ASSOCIATION BOARD MEMBERS, OFFICERS, & DIRECTORS HAVE THE DUTY TO ENSURE SUCH COMMUNITY ASSOCIATION FIRMS OR COMMUNITY ASSOCIATION MANAGERS ARE PROPERLY LICENSED.

EFFECTIVE JANUARY 1, 2027

HB  465

This is not a bill we need to support.   

The bill, if passed, is effective January 1, 2027.  It requires  community associations with minimum annual revenues of $500,000 to hire a community association management firm,  and that each board member is required to ensure that the community management firm and the community association manager is licensed before entering into a contract.

There is nothing in this bill that would strengthen transparency or provide any financial relief for community association members.   

In fact, it is unclear why a minimum of $500,000 of annual revenues is required other than (1)  to make it financially feasible for community management firms  to line their pockets, or, (2) to make boards more likely to restate revenues falling under the $500,000 threshold.     

As far as making each board member responsible to check a community association management firm or a community association manager to ensure proper licensing, isn’t that what they should already be doing under the business judgment rule?    If not, those boards need  to be held personally liable.   You don’t need to be a genius to figure that out.

In addition, to require a community association management firm, only serves to deprive a capable licensed community association manager who chooses to work independently and not within the structure, rules and confines of a management company.   In the  best case scenario, to form an unnecessary one person LLC to fulfill the statute to perform their duties.

The bill includes boilerplate language in 718, 719 and 720, Florida Statutes.  

Section 1. Paragraph (g) of subsection (3) of section 718.111, Florida Statutes is amended to read, in part:

                         718.111 The association.-

(3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT, SUE, AND BE SUED; CONFLICT OF INTEREST.-“association with  “total annual revenues of $500,000 or more must contract with a community association management firm.    The bill omits the verbiage“[a]ll to substitute that  [e]ach board member or officer of an association … has … has a duty to ensure a community association manager or a community association management  firm” is properly licensed.  

The bill adds new language to section 718.405, Florida Statutes, to read:

718.405 Multicondominiums; multicondominium associations.-

     (6) An association operating a multicondominium must contract with a community association management firm. The community association management firm must possess all applicable licenses required by part VIII of chapter 468. Each board member or officer of an association that contracts with a community association manager or a community association management firm has a duty to ensure that the community association manager or community association management firm is properly licensed before entering into a contract.

The bill amends Section 3. Paragraph (a) of subsection (1) of section 719.106, Florida Statutes, to add new subparagraphs 4 and 5  to read:

719.106 Bylaws; cooperative ownership.-

4. An association with total annual revenues of $500,000 or more must contract with a community association management  firm. The community association management firm must possess all applicable licenses required by part VIII of chapter 468.

5. Each board member or officer of an association that contracts with a community association manager or a community association management firm has a duty to ensure that the community association manager or community association management firm is properly licensed before entering into a contract.

The bill amends  720.303, Florida Statutes to read:

720.303 Association powers and duties; meetings of board; official records; budgets; financial reporting; association funds; recalls.-

(1) POWERS AND DUTIES.-…

 An association with total annual revenues of $500,000 or more must contract with a community association management firm. The community association management firm must possess all applicable licenses required by part VIII of chapter 468. … Each officer and director of an association that contracts with a community association manager or a community association management firm has a duty to ensure that the community association manager or community association management firm is properly licensed before entering into a contract.

Even re-reading the bill, I still find nothing in this bill to applaud, and we certainly should not support this bill.