LEGISLATIVE SESSION 2026

ANALYSIS OF BILL HB 657

COMMUNITY ASSOCIATIONS

GENERAL BILL introduced by Representative Juan Carlos Porras

HB 657  Community Associations

Last Action: 12/04/2025      House  - Filed
Effective Date: 07/01/2026

ANALYSIS

AN ACT RELATING TO COMMUNITY ASSOCIATIONS THAT (1) REMOVES PRESUIT MEDIATION REQUIREMENTS; (2) REQUIRES ASSOCIATIONS TO INCLUDE SPECIFIED STATEMENTS IN THEIR GOVERNING DOCUMENTS OR TO HOLD MEETINGS BY DATE CERTAIN TO VOTE TO AMEND GOVERNING DOCUMENTS TO INCLUDE SUCH STATEMENT; (3) REQUIRES THAT SPECIFIED ARBITRATORS CONDUCT ARBITRATION PROCEEDINGS; (4) AUTHORIZES HOA'S TO BE TERMINATED; (5) PROVIDES REQUIREMENTS FOR TERMINATION OF HOA; (6) PROVIDES CONDITIONS FOR PLAN OF TERMINATION; (7) REQUIRES APPROVED PLAN OF TERMINATION BE SUBMITTED TO COMMUNITY ASSOCIATION COURT PROGRAMS AND RECORDED IN PUBLIC RECORDS OF EACH COUNTY IN WHICH ASSOCIATION IS LOCATED; (8) PROVIDES DUTIES AND RESPONSIBILITIES OF TERMINATION TRUSTEE; (9) AUTHORIZES MEMBERS TO FILE PETITION WITH COMMUNITY ASSOCIATION COURT PROGRAMS; (10) AUTHORIZES COMMUNITY ASSOCIATION COURT PROGRAMS TO TAKE CERTAIN ACTIONS;(11)  PROVIDES RESPONSIBILITIES OF BOARD AFTER APPROVAL OF PLAN OF TERMINATION; (12) PROVIDES FOR DISTRIBUTION OF ASSETS AND PAYING OF LAWFUL DEBTS AFTER ASSOCIATION IS TERMINATED; (13) SPECIFIES UNLAWFUL ACTIONS BY ASSOCIATION OR ITS OFFICERS OR DIRECTORS; (14) AUTHORIZES CIRCUIT COURTS TO CREATE AND  ADMINISTER COMMUNITY ASSOCIATION COURT PROGRAMS; (15) PROVIDES DUTIES OF CHIEF JUDGE; (16) PROVIDES JURISDICTION OF COMMUNITY ASSOCIATION COURT PROGRAMS; (17) AUTHORIZES COMMUNITY ASSOCIATION COURT PROGRAM TO TAKE CERTAIN ACTIONS; (18) REQUIRES EACH JUDICIAL CIRCUIT TO SUBMIT TO LEGISLATURE A  SPECIFIED REPORT ANNUALLY BY SPECIFIED DATE; (19) PROVIDES DUTIES OF OSCA; AND (20) PROVIDES CERTAIN FUNDING TO COME FROM DBPR APPROPRIATION.

EFFECTIVE JULY 1, 2026

HB 657

We should support this bill.

The bill if passed, is effective as of July 1, 2026.   

The bill amends section 718.1255 Florida Statutes  (Alternative dispute resolution; mediation, binding arbitration; applicability).

Subsections (6) and (7) of section 718.1255 Florida Statutes, are renumbered as subsections (5) and (6). 

Paragraphs (a), (h), (k), and (m) of subsection 718.1255 Florida Statutes (4) and present subsection (5) of that section are amended to read:

Subsection (4)(a) removes the requirement that a party with a dispute (other than election or recall disputes) must engage in pre-suit mediation before institution of court litigation.   Instead, the party must petition the division for non-binding arbitration or request that the case be referred to mediation.

Subsection 4(h) is amended to include the proposed community association court program under s. 720.32  to read: “if parties do not agree to continue arbitration, the arbitrator shall enter an order of dismissal, and either party may institute a suit in a community association court program under s. 720.32 or a court of competent jurisdiction.”

Subsection 4(k) is amended to include the proposed community association court program under s. 720.32 to provide that an arbitration decision is also final if a complaint for a trial de novo is not filed in a community association court program under s. 720.32 or a court of competent jurisdiction in which the condominium is located within 30 days.

Subsection 4 (m) is amended to include the proposed community association court program under s. 720.32 to provide that “Any party to an arbitration proceeding may enforce an arbitration award by filing a petition in a community association court program under s. 720.32 or a court of  competent jurisdiction.” 

In addition, subsection 4 (m)  includes the proposed community association program under s.; 720.32, Florida Statutes:   “A mediation settlement may also be enforced through the county or circuit court or a community association court program, as applicable, and any costs and fees incurred in the enforcement of a settlement agreement reached at mediation must be awarded to the prevailing party in any enforcement action.

Subsection 5 which relates to pre-suit mediation is deleted in its entirety.

The bill amends subsection (2) of s. 720.302 Florida Statutes  (Purposes, scope and application) to delete pre-suit mediation of other disputes involving covenant enforcement.

Section 3. Subsection (1) of section 720.303, Florida Statutes, is amended to read:

720.303(1)(c) (Association powers and duties; meetings of board; official records; budgets; financial reporting; association funds; recalls).

1.    Beginning July 1, 2026, each newly formed and incorporated association must include the following statement in the governing documents:

This association and the association's governing documents are governed by the Florida Condominium Act, as amended from time to time.

2. By January 1, 2027, each association in existence on or before July 1, 2026, must hold a meeting of the members in accordance with s. 720.306 to vote whether to amend the governing documents of the association to include the statement in subparagraph 1. The association must obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained in order to amend the governing documents under this subparagraph.

It is unclear why an homeowner's association documents should be governed by the Florida Condominium Act.

The bill amends s. 720.306(1)(h)(3) Florida Statutes (Meetings of members; voting and election procedures; amendments.) to conform to the current subparagraph.

 (1) QUORUM; AMENDMENTS.-

(h)3. This paragraph does not affect the amendment restrictions for associations of 15 or fewer parcel owners under s. 720.303(1)(f) Florida Statutes.

The bill removes the pre-suit requirement for mediation in order for the statute to be tolled. The bill’s new provision provides that the filing of any petition for arbitration tolls the statute of limitations and must be arbitrated by the department or filed in a court of competent jurisdiction. In addition, the arbitration proceeding must be conducted by a department arbitrator or by a private arbitrator certified by the department.

        The bill deletes s. 720.311(2)(a) and s. 720.311(2b) Florida Statutes relating to pre-suit mediation and renames s. 720.311(2)(c) Florida Statutes as subparagraph (2).

The new sub-paragraph (2) removes all references of  pre-suit mediation to allow all issues between parties to file unresolved disputes in courts of competent jurisdiction of competent jurisdiction or elect to enter into binding or nonbinding arbitration pursuant to the procedures set forth in s. 718.1255 Florida Statutes and rules adopted by the division.   The arbitration proceeding is to be conducted by a department arbitrator or by a private arbitrator certified by the department. If all parties do not agree to arbitration proceedings any party may file the dispute in court.

           The bill also amends the verbiage of an action seeking enforcement of the arbitration settlement from the command of “shall” (making it compulsory) to “may”  (which makes it optional) to provide that the prevailing party in any subsequent arbitration or litigation proceeding “may seek recovery of all costs and attorney attorney's fees incurred in the arbitration.

One of the most prominent features of this proposed bill is that it creates Section 720.319, Florida Statutes which provides the steps necessary for dissolution of a homeowners association.

720.319 Dissolution of homeowners' association.-

(1)    This section may be cited as the "Homeowners' Association Dissolution and Accountability Act."

(2)  The Legislature finds that:

(a) Homeowners' associations are created as authorized by general law and are subject to covenants that encumber the land and restrict the use of real property.

(b) In some circumstances, the continued enforcement of covenants may no longer serve the homeowners' or community's interest and it is the public policy of this state to provide by general law a method to preserve the value of the property interests and the rights of alienation thereof that homeowners have in their parcels before and after termination.

(c) It is contrary to the public policy of this state to require the continued operation of a homeowners' association when such continuation is made impossible by law or regulation.

(d) It is in the best interest of this state to provide for termination of the declaration of covenants in certain circumstances in order to:

1. Prevent covenants from impairing the continued productive use of the property.

2. Provide fair treatment and just compensation for parcel owners and preserve property values and the local property tax base.

3. Preserve the state's long history of protecting homestead property rights by ensuring that such protection is extended to parcel owners whose parcel is their homestead in the context of a  termination of a declaration of covenants for an association.

(3)  A homeowners association may be terminated by a plan of termination that meets the requirements of this section and is approved by a community association court program under s.720.32.

(4) A plan of termination is subject to the following conditions:

     (a) The total voting interests of the association must include all voting interests for the purpose of considering a plan of termination. A voting interest of the association may not be suspended for any reason when voting on termination under this section.

     (b)     If the members reject a plan of termination, a subsequent plan of termination under this section may not be considered for at least 18 months after the date of the rejection.

(5)            (a) A parcel owner who wishes to terminate a homeowners' association in which he or she is a member must provide to the board of administration with a petition for a plan of termination that is signed by at least 20 percent of the voting members of the association. The board must hold a meeting of the members within 60 days after receipt of the signed petition.

     (b) Notice of such meeting must be made in accordance with s. 720.303(2) and include the following information:

     1. A copy of the proposed plan of dissolution.

     2. An explanation of how the common areas and the assets of the association will be managed or transferred. 

     3.The manner in which voting will take place.

     (c) If the board fails to call a meeting within the 60-day time period, any member may petition a community association court program under s. 720.32 or, if a community association court program does not exist in the judicial circuit in which the association is located, a court of competent jurisdiction for an order compelling compliance with this section.

(6)(a) A plan of termination must be approved by at least two-thirds of the total voting interests of the association.

     (b) A parcel owner desiring to reject the plan of termination must do so by either voting to reject the plan in person or by proxy or by delivering a written objection to the association before or at the meeting called under subsection (5).

 ( 7)   If a plan of termination is approved, the board must submit such plan to the community association court program in the judicial circuit in which the association is located or, if a community association court program does not exist, a court of competent jurisdiction. The court shall examine the plan of termination and determine its procedural sufficiency and, within 45 days after receipt of the plan, notify the association by mail of any procedural deficiencies or that the plan is accepted. If notice is not provided within the 45-day time period, the plan of termination is presumed to be accepted. If the court determines that the conditions required by this section have been met and that the plan of termination complies with the procedural requirements of this section, the court must authorize the termination and the termination may proceed as authorized in this section.

(8)(a) A plan of termination and the consents or joinders of parcel owners must be recorded in the public records of each county in which any portion of the association is located. The plan is effective only upon recordation or at a later date specified in the plan.

(b) Upon recordation or at a later date specified in the plan of termination, title to the association property vests in a termination trustee. The board serves as such trustee unless another person is appointed in the plan of termination. If the board is not the termination trustee, the board must transfer any association property to such trustee. The termination trustee is vested with the powers given by the declaration and bylaws of the association and subsection (10). If the board is unable, unwilling, or fails to act as termination trustee, a parcel owner may petition the community association court program to appoint a termination trustee.

(9) If the board fails to hold the meeting under subsection (5), obstructs the termination process, or refuses to record the decision of the members to terminate, a member may file a petition with the community association court program in the judicial circuit in which the association is located or, if a community association court program does not exist, a court of  competent jurisdiction. A community association court program may do all of the following:

(a) Verify compliance with the procedural requirements of this section and all statutory voting requirements.

(b) Order the Department of State to dissolve the homeowners' association.

(c) Appoint a receiver to manage the distribution of assets and resolution of liabilities.

(10) The approval of the plan of termination does not terminate the board of administration, which shall continue in existence following approval of the plan of termination with all powers and duties such board had before approval of the plan.  Notwithstanding any provision to the contrary in the declaration or bylaws, after approval of the plan of termination the board must:

(a) Employ directors, agents, attorneys, and other professionals to liquidate or conclude the board's affairs.

(b) Conduct the affairs of the association as necessary for the liquidation or termination.

(c) Carry out contracts and collect, pay, and settle debts and claims for and against the association.

(d) Defend suits brought against the association.

(e)    Sue in the name of the association for all sums due or owed to the association or to recover any association property.

(f) Perform any act necessary to maintain, repair, or demolish unsafe or uninhabitable improvements or other association property in compliance with applicable codes.

(g) Sell at public or private sale or exchange, convey, or otherwise dispose of assets of the association for an amount deemed to be in the best interests of the association, and execute bills of sale and deeds of conveyance in the name of the association.

(h) Collect and receive rents, profits, accounts  receivable, income, maintenance fees, special assessments, or insurance proceeds for the association.

(i) Contract and do anything in the name of the association which is proper or convenient to terminate the affairs of the association.

(11)(a) All remaining association assets after the payment of any lawful debts must be distributed equally among members or as otherwise provided in the plan of termination.

(b) A member may not be subject to personal liability for unpaid obligations beyond the member's regular assessments or special assessments that existed before the vote for termination.

(12)(a) The following actions by an association or the officers or directors thereof are unlawful:

              1. Failing to call or notice a meeting after receipt of a valid petition for a plan of termination.

               2. Spending association funds to campaign for or against the plan of termination.

               3. Concealing any financial or property records relevant to the plan of termination.

     (b) An officer or a director who violates paragraph (a) is

subject to any of the following:

     1. A civil penalty of up to $5,000 per violation.

     2. Removal from office by court order.

     3. Personal liability for legal fees incurred by the petitioners.

The most interesting part of the bill is the Community association court program.   It would streamline the courts and perhaps have the issues of different circuits ruling different ways curtailed.

Section 7. Section 720.32, Florida Statutes, is created to read:

720.32 Community association court program.-

(1) It is the intent of the Legislature to encourage and support the judicial circuits of the state to create and maintain a community association court program in each judicial circuit. The purpose of a community association court program is to address disputes that arise between community associations and the members thereof or between members within a community association. It is the intent of the Legislature that this section provide a detailed statewide standard for the  creation, operation, and procedures for community association court programs.

(2) A circuit court may create and administer a community association court program. The chief judge shall designate at least one judge to preside over the community association court program. The chief judge may issue administrative orders concerning the community association court program.

(3) The community association court program has jurisdiction over disputes, including any related termination or enforcement proceedings, arising under any of the following:

(a) Chapter 718, the Condominium Act.

(b) Chapter 719, the Cooperative Act.

 ( C)   Chapter 720, the Homeowners' Association Act.

(4) The community association court program may do all of

               the following:

(a) Enforce all statutory rights of unit owners and parcel owners.

(b) Verify and compel compliance with all statutory requirements by community associations, boards of administration, and officers or directors of such boards.

(c) Order the Department of State to dissolve a community association.

(d) Appoint a receiver to manage the distribution of association assets and resolution of liabilities. ( e) Impose civil penalties for violations

 of statutory rights.

(f) Issue injunctive relief as appropriate.

(g) Award reasonable attorney fees and costs appropriate.

(5) By January 1 of each year, the chief judge in each judicial circuit in which a community association court program  is created shall submit to the President of the Senate and the Speaker of the House of Representatives a report that summarizes the caseload of each community association court program and the outcomes of such caseload.

(6) The Office of the State Courts Administrator shall establish procedures, staffing, and reporting requirements for the operation of the community association court program.

(7) The costs associated with the creation, operation, and compliance and enforcement duties of the community association court program shall be funded through a general revenue appropriation to the department.

Section 8. Paragraph (d) of subsection (1) of section 34.01, Florida Statutes, is amended to read:

34.01 Jurisdiction of county court.-

(1) County courts shall have original jurisdiction:

(d) Of disputes occurring in the homeowners' associations

as described in s. 720.311(2)(a), which shall be concurrent with jurisdiction of the circuit courts.