Florida legislators are threatening to introduce new legislation regulating homeowners associations (HOAs), bolstering a law already on the books that looks to improve oversight. Numerous court filings and disputes have arisen over the past year in a state that has become ground zero in the attempt to rein in HOAs.
In October, a Florida law known as the Homeowners Association Bill of Rights took effect. The law, which was created as a way to improve oversight of the state’s HOAs, required notices for homeowners association board meetings to specifically identify agenda items, and made it easier to get notifications about the meetings.
That law was made after corruption allegations were levied against the Hammocks HOA, in suburban Miami, whose board members were accused of stealing funds. Earlier this month, and a full year after members of Florida’s largest homeowners association were charged in a money-laundering scheme, authorities announced yet another arrest in the case.
The talk of legislation came after an October public hearing in the town of Osprey, in Sarasota County, where two of the county’s state representatives, Republicans Fiona McFarland and James Buchanan, listened to residents who shared their negative experiences with HOAs. “I can’t find a single person who’s happy with their HOA,” Ms. McFarland said at the meeting, promising to consider any proposed legislation to regulate HOAs and their officers.
Republican Rep. Juan Carlos Porras, who sponsored the Homeowners Association Bill of Rights, was also at the Osprey meeting. Mr. Porras represents a Miami-Dade County District. Speaking afterward, Mr. Porras promised more HOA legislation. “I’m being told from our leadership up in Tallahassee that we will have another HOA bill next year and a much more comprehensive one at that,” according to the Sarasota Herald-Tribune. “We don’t have all the details yet. Obviously, it’s very early on in the committee process. But I can tell constituents that more is coming.”Ryan Poliakoff, a partner at Poliakoff Backer, LLP and a board-certified specialist in condominium and planned development law in Florida, thinks the politicians are overreacting.
“You’ve got legislators coming in and proposing these extensive laws which are good publicity for these legislators, but the vast majority are not going to pass,” he told The Epoch Times. “These initiatives come up from time to time and there’s no question there are examples of abuse in the condo and homeowner association world. But is there something new going on in the industry? Absolutely not.”
Mr. Poliakoff believes ample government oversights are already available but are vastly underfunded.
“The actual solution, in my opinion, is to give more authority and resources to the Division of Florida Condominiums, Timeshares, and Mobile Homes. The state has decreased its funding and its authority to investigate abuses. Because of this, they’ve created a system where owners either have to go to court or arbitration after mediation. Then, if you lose, you are responsible for the association’s legal fees. The risks involved are huge.”
Another loud complaint from some Florida homeowners is that the monthly cost of HOAs continues to increase, with much of that attributed to the state’s rapidly rising insurance rates. According to Insurance.com, the average cost of homeowners insurance in Florida, is $4,218 a year, well above the national average. Florida insurance rates have increased by 42.1 percent since 2022, according to S&P Global.
Amy Sanchez, the Central Florida president of First Service Residential, a property management firm that oversees HOAs, says there are ample assessment restrictions and limits on fees on the books. Still, insurance costs are continuing to drive up rates.
“Florida has regulations that control how much a budget will go up every year. But with insurance premiums and taxes climbing, an association has no direct control over these,” she told The Epoch Times. “There are a lot of different things being addressed by the Florida Legislature right now, from insurance premiums to fraud. We need greater clarity on what the guardrails and parameters need to be.”
Some HOA disputes are unique to Florida, such as one made by a homeowner on Reddit because a lack of rain had destroyed his lawn, breaking his association’s rules and restrictions. Although he said on Reddit that he had consistently mowed, weeded, and watered his yard, it did not prevent him from the eventual wrath of his HOA.
Mr. Poliakoff’s opinion is that many of these types of disputes can be mitigated if homebuyers take the time to read the bylaws of the subdivision or condo association.
“You, as a smart and informed buyer, should insist on reading them, and the seller has the obligation to provide you with those documents. Way too frequently I see people going into these purchasing decisions without even looking at the restrictions governing them. Unfortunately, if you make a purchasing decision without doing the leg work to make you an informed buyer, that’s on you,” he said.
According to Ms. Sanchez, buyers need to remember that HOAs can add value to a home and save money, with monthly fees covering gardening, painting, and sidewalk repair, eliminating the need to pay for outside vendors. “The reality is that homeowners associations are becoming more popular and frequent as [homebuyers] choose associations as a way of life,” she said.
She believes that communities run by associations have residents who are “a lot more understanding,“ and cited the convenience of knowing what a community looks like before a home purchase. ”I like to know who my neighbors are and the community amenities before I buy.”
