New proposal lets Florida homeowners abolish their HOAs. Here’s how it would work

TALLAHASSEE, Fla. – A bill filed last week in Florida aims to dissolve HOAs across the state — but that’s only if it even makes any headway.

The bill — HB 657 — was filed on Dec. 4 by state Rep. Juan Porras (R-Miami), who announced earlier this year that he was considering a statewide ban on HOAs, calling them a “failed experiment.”

Porras’ latest proposal introduces several rules pointed at community associations (COAs), including the following:

• Getting rid of presuit mediation requirements for COAs
• Creating a new Community Association Court Program in circuit courts to better handle disputes
• Requiring new COAs (those created on or after July 1, 2026) to include the following statement in their governing documents:

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

• Requiring other COAs (those created before July 1, 2026) to hold a meeting on whether to include that statement in their own governing documents

But one of the more prominent changes included in this bill is a process by which HOAs may finally be dissolved.

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HB 657, if approved, creates the “Homeowners’ Association Dissolution and Accountability Act,” which allows for this dissolution under select situations.

“It is in the best interest of this state to provide for termination of the declaration of covenants in certain circumstances in order to... preserve the state’s long history of protecting homestead property rights,” the bill reads.

HOW IT WORKS

Under the bill, a homeowner who wants to terminate his/her respective HOA must provide the board a petition that includes signatures from at least 20% of the HOA’s voting members.

The board must then hold a meeting within 60 days, with two-thirds of the total voting interests being required to approve the termination plan.

If the plan fails to garner enough support, then residents would have to wait another 18 months before trying again.

WHAT IF IT GETS APPROVED?

If the termination plan does get passed, the HOA board would then be required to carry out the following:

• Employ professionals to liquidate or conclude the board’s affairs
• Conduct the affairs of the association as necessary for the liquidation or termination
• Carry out contracts and collect, pay, and settle debts and claims for and against the HOA
• Defend suits brought against the association
• Sue in the name of the association for all sums due or owed to the HOA or to recover any HOA property
• Perform any act necessary to maintain, repair or demolish unsafe or uninhabitable improvements or other HOA property in compliance with applicable codes
• Sell at public or private sale or exchange, convey, or otherwise dispose of assets of the HOA for an amount deemed to be in the best interests of the HOA, and execute bills of sale and deeds of conveyance in the name of the HOA
• Collect and receive rents, profits, accounts receivable, income, maintenance fees, special assessments, or insurance proceeds for the association
• Contract and do anything in the name of the HOA which is proper or convenient to terminate the affairs of the HOA

Afterward, any remaining association assets must be distributed equally among members or as provided in the termination plan.

In addition, HB 657 aims to punish officers or directors who use HOA funds to campaign for or against termination plans, fail to hold a meeting after receiving a petition, or hide financial records relevant to termination plans.

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Anyone found violating those rules could be fined up to $5,000 per violation and be removed from office.

WHAT’S NEXT FOR HB 657?

Now that the bill has been filed, it will need to pass through at least one other committee before the full House will vote on it.

However, no information has been given at this time about which committees the bill may be referred to. Furthermore, there is no companion bill in the Senate as of Dec. 9.

But if the bill manages to clear both houses during next year’s Legislative session and garner Gov. DeSantis’ signature, it is slated to take effect on July 1, 2026.