What's Happening?
A new bill introduced by Florida Republican Representative Juan Porras aims to simplify the process for homeowners to dissolve their homeowners associations (HOAs). The proposed legislation, HB 657, would allow homeowners to terminate their HOA by a majority
vote. If 20% of HOA members sign a petition, the board must hold a community-wide vote, and if two-thirds of all homeowners, including those behind on dues, support it, the proposal would proceed to the Community Association Court Program for review. This bill comes in response to rising HOA fees, which have surged by nearly 60% in Miami-Dade County and over 56% in Broward County between 2019 and 2023. The bill also prohibits HOA boards from using association funds to campaign against termination, imposing fines for violations.
Why It's Important?
The bill addresses the financial strain on Floridians due to increasing HOA fees, which have made living in certain areas unaffordable for many. By potentially allowing easier dissolution of HOAs, the bill could provide relief to homeowners burdened by high fees. However, experts warn that the costs managed by HOAs will not disappear but will shift to individual homeowners, potentially affecting property values. Homes managed by HOAs typically sell for 5% to 6% more than those without, suggesting that dissolving HOAs could impact real estate markets. The bill's passage could significantly alter community dynamics and property management in Florida, which has the second-highest number of HOAs in the U.S.
What's Next?
If passed, the bill would take effect on July 1, 2026. However, its progress is uncertain as it currently lacks a companion bill in the Florida Senate, which is necessary for it to pass the full state legislature. The new legislative session begins on January 13, and the bill's future will depend on whether it gains the necessary support in both legislative chambers.
