Community Associations Popular with Homeowners Despite Proposed Law

The firm’s latest Miami Herald “Real Estate Counselor” column was authored by shareholder Michael Toback. The article, which is titled “Community Associations Popular with Homeowners Despite Proposed Law,” focuses on the positive outlook for community associations despite proposed state legislation aimed at significantly reshaping how their disputes are handled.

Michael’s column reads:

. . . The proposed legislation being considered by Florida’s lawmakers would substantially change the state’s processes for resolving association disputes. House Bill 657, which does not yet have a companion bill in the Florida Senate, would create a state-funded court program for such clashes. At present, disputes regularly adhere to the statutorily required processes of either pre-suit mediation or arbitration proceedings administered by the state’s Department of Business and Professional Regulation.

A notable component of the bill is a facilitated process for dissolving homeowners associations. Under the proposal, at least 20 percent of an HOA’s owners would be required to petition for termination. The board would then prepare a termination plan, which must be approved by two‑thirds of the owners.

If approved, the plan would be submitted either to the new community association court program or to the circuit court in the corresponding judicial district. The court would have 45 days to accept or reject the plan. If it is approved, the board or a court‑appointed termination trustee would carry out the dissolution and wind down the association’s affairs in accordance with the plan and applicable law.

The proposed legislation also seeks to mandate that new community associations include language in their governing documents that automatically incorporates changes to applicable state laws. Existing condominium and homeowners associations would be required to hold a meeting of their owner members to conduct a vote requiring majority approval on whether to add such language to their governing documents.

Despite the negative sentiments towards association fees, rules enforcement and perceived or actual malfeasance that has likely spurred this proposed legislation, there continue to be many positive indicators for the outlook for community associations in 2026.

While the housing market is expected to build on the gradual stabilization that began in 2025 and see improvements in inventory, home sales, prices, and mortgage rates, community associations are poised to remain the preferred housing choice for millions of Americans. The Foundation for Community Association Research projects that between 3,000 to 4,000 new condominium communities and homeowners associations will be developed in 2026, growing the total number of associations in the U.S. from approximately 373,000 at the end of 2025 to as many as 377,000 in 2026, accounting for about one-third of the nation’s housing stock.

The Foundation’s U.S. National and State Statistical Review estimates that nearly 80 million Americans now call community associations home, and the research indicates that developers, planners, and local governments increasingly rely on associations to create housing while supporting infrastructure and service needs.

The organization also forecasts that housing inventory will increase in 2026 due to steady new construction activity and more homeowners listing properties as mortgage-rate pressures ease. It foresees strengthening sales as affordability gradually improves and buyers return to the housing market, which will also benefit from slower inflation and mortgage rates in the mid-5% range by late 2026.

Even with the criticism that receives public attention, overall homeowner satisfaction with community associations remains high. Data from its 2024 Homeowner Satisfaction Survey, which was conducted by Zogby Analytics, reveals that 86% of respondents rate their experience with their community association as either very good, good or neutral. Eighty two percent believe their elected governing board serves their community’s best interests, 72% say their property manager provides valuable support, and 87% believe their association’s rules protect or enhance property values.

Community associations continue to cater to those who wish to enjoy active lifestyles with resort-like amenities such as pools, clubhouses, restaurants, fitness centers, sports courts, parks, trails, and others. Owners also have meaningful opportunities to participate in their association’s financial, administrative and managerial matters. Open board meetings provide transparency into association finances and management, allowing owners to stay informed about issues affecting the community. Any eligible owner may run for the board, serve on committees, and contribute to shaping the direction and governance of their association. . .

Michael concludes his column by noting that while community associations may not be the right fit for everyone, they offer desirable opportunities for many. He writes that even as lawmakers consider reforms and some owners express frustration with costs and compliance, the overall outlook for community associations remains strong as they continue to serve millions of Americans seeking convenience, amenities, and shared governance in their residential communities.

Our firm salutes Michael for sharing his insights into the proposed community association reforms and the favorable outlook for associations with the readers of the Miami Herald.  Click here to read the complete article in the newspaper’s website.

Our South Florida community association attorneys write about important matters for associations and other property owners in this blog and our Miami Herald column, which appears every two weeks on Sundays, and we encourage association directors, members and property managers as well as all property owners to click here and subscribe to our newsletter to receive our future articles.