Florida Governor Signs House Bill 1203

Continuing to report legislative developments, the Governor recently signed House Bill 1203 into law. This 44-page bill significantly changes the professional practice standards for CAMs and CAM firms and numerous sections of the Homeowners Association Act. Below is our firm’s summary of the bill:

CAM Requirements-HOA

• Requires CAMs and CAM firms authorized by a contract to provide community association management to an HOA to:
  • Attend in person at least one member meeting or board meeting of the homeowners’ association annually;
  • Provide HOA members:
    • The name and contact information for each CAM or representative of the CAM firm assigned to the HOA.
    • The CAM’s or representative’s hours of availability.
    • A summary of the duties for which the CAM or representative is responsible.

468.4334(3), Florida Statutes 

• Requires that the HOA post this information on the HOA website or application. Requires that a CAM or CAM firm update the HOA and its members within 14 business days after any change to such information.

468.4334(3)(b), Florida Statutes 

• A CAM or CAM firm must provide the contract between the HOA and the CAM/CAM firm upon an HOA member’s request. Such contract must be maintained with the HOA’s official records.

468.4334(3)(c), Florida Statutes 

• Clarifies that the council may not require more than 10 hours of continuing education annually for the renewal of a license.

468.4337, Florida Statutes 

• Mandates that every two (2) years, a CAM that provides services to an HOA must complete at least five (5) hours of continuing education that pertains specifically to HOAs, three (3) hours of which must relate to recordkeeping.

468.4337, Florida Statutes

Official Records/Website Requirements-HOA

• Requires the association to maintain specified official records for seven (7) years unless the association’s governing documents require a longer period of time.

720.303(4)(a), Florida Statutes 

• Requires every HOA with 100 or more parcels, by January 1, 2025, to post a current digital copy of specified official records on its website or make such documents available through an application that can be downloaded on a mobile device.

720.303(4)(b), Florida Statutes 

• Such application or website must be accessible through the Internet and have a subpage or portal inaccessible to the general public and that is accessible only to HOA parcel owners and employees.

720.303(4)(b)(2), Florida Statutes

• Upon the parcel owner’s written request, an HOA must provide a parcel owner a username and password, giving the parcel owner access to the restricted subpage or portal.

720.303(4)(b)(3), Florida Statutes

• The association must ensure that records not accessible to parcel owners are not posted to the association’s website or application. If protected information is included in documents required to be posted, the association is responsible for redacting protected information before posting. The association or its authorized agent is not liable for disclosing protected or restricted information unless such disclosure was intentional.

720.303(4)(b)(4), Florida Statutes 

• The association must adopt written rules governing the method of retaining official records and the length of such retention.

720.303(4)(c), Florida Statutes 

• A second-degree misdemeanor for a director, board member, the HOA, or a community association manager who knowingly, willfully, and repeatedly violates the inspection and copying of official records provisions with the intent of causing harm to the association or one or more of its members.

720.303(5)(d), Florida Statutes 

• A first-degree misdemeanor for any person who knowingly and intentionally defaces or destroys accounting records during the period in which such records are required to be retained or who knowingly or intentionally fails to create or maintain accounting records that are required to be created or retained, with the intent of causing harm to the association or one or more of its members.

720.303(5)(e), Florida Statutes 

• A third-degree felony for any person who willfully and knowingly refuses to release or otherwise produce association records with the intent to avoid or escape detection, arrest, trial, or punishment for the commission of a crime or to assist another person with such avoidance or escape.

720.303(5)(f), Florida Statutes 

• Provides that if an HOA receives a subpoena for records from a law enforcement agency, the HOA must provide a copy of such records or otherwise make the records available to a law enforcement agency within five (5) business days after receipt of the subpoena. The bill requires that an HOA must assist a law enforcement agency in its investigation to the extent permissible by law.

720.303(5)(i), Florida Statutes

Financial Reporting-HOA

•  Requires an HOA with 1,000 parcels or more to prepare audited financial statements, regardless of the HOA’s total annual revenue.

720.303(7)(a)(4), Florida Statutes

Debit Cards-HOA

• Prohibits an HOA and its officers, directors, employees, and agents from using a debit card issued in the HOA’s name, or billed directly to the HOA, for the payment of any association expenses. Specifies that any person who uses a debit card issued in the HOA’s name, or billed directly to the HOA, for any expense that is not a lawful HOA obligation commits theft as provided under s. 812.014, F.S.

720.303(13), Florida Statutes 

Director Education Requirements-HOA 

• Requires a newly elected or appointed director, within 90 days after being elected or appointed to the board, to complete and submit a certificate of satisfactorily completing an educational curriculum administered by a DBPR-approved education provider.
• Provides that such educational curriculum, specific to newly elected or appointed directors, must include training relating to financial literacy and transparency, recordkeeping, levying of fines, and notice and meeting requirements.
• Provides that the certification of completion for education specific to newly elected or appointed directors is valid for up to four (4) years.
• Requires a director to retake the DBPR-approved initial education every four (4) years.
• Requires a director of an association with fewer than 2,500 parcels to complete at least four (4) hours of continuing education annually.
• Requires a director of an association with 2,500 parcels or more to complete at least eight (8) hours of continuing education annually.
• Requires the department to adopt rules to implement and administer the educational requirements under this subsection.

720.3033(1), Florida Statutes 

 Kickback-HOA

• Provides that an HOA officer, director, or manager who knowingly solicits, offers to accept, or accepts any kickback, commits a third-degree felony, and is subject to monetary damages.

720.3033(3), Florida Statutes

Removal from Office-HOA

• Provides that where a director or officer is charged by information or indictment with a specified criminal offense and must be removed from office as provided in current law, a vacancy must also be declared, and adds any criminal violation under the HOA Act as an offense for which such removal and vacancy is required.

720.3033(4)(a), Florida Statutes

Accounting of Balances Due-HOA

• Provides that a parcel owner may make a written request to the board for a detailed accounting of any amounts owed to the HOA related to the parcel, and the board shall provide such information within 15 business days after receipt of the written request.
• After a parcel owner makes a written request for a detailed accounting, he or she may not ask for another detailed accounting for 90 calendar days.
• Failure by the board to respond within 15 business days to a written request for a detailed accounting constitutes a complete waiver of any outstanding fines of the person who requested such accounting which such outstanding fines are more than 30 days past due and the HOA has not given prior written notice of the imposition of the fines.

720.303(14), Florida Statutes

 Architectural Control-HOA

• Requires an HOA or ARC to uniformly apply and enforce the architectural and construction improvement standards against all parcel owners authorized by the HOA governing documents.
• Prohibits an HOA or ARC from enforcing or adopting a covenant, rule, or guideline that:
  • Limits or places requirements on the interior of a structure that is not visible from the parcel’s frontage or an adjacent parcel, an adjacent common area, or a community golf course.
  • Requires the review and approval of plans and specifications for a central air-conditioning, refrigeration, heating, or ventilating system by the HOA or any architectural, construction improvement, or other such similar committee of an HOA, if such system is:
    • not visible from the parcel’s frontage, an adjacent parcel, an adjacent common area, or a community golf course.
    • is substantially similar to a system that is approved or recommended by the HOA or a committee thereof.
• Provides that if the HOA or ARC denies a parcel owner’s request or application for the construction of a structure or other improvement on a parcel, the HOA or ARC must provide written notice to the parcel owner stating with specificity the rule or covenant on which the HOA or ARC relied when denying the request or application.

720.3035, Florida Statutes

 Prohibited Clauses-HOA

• Expands the list of items that an HOA is prohibited from preventing a homeowner from installing, displaying, or storing on their property to include vegetable gardens and clotheslines in areas not visible from the frontage or adjacent parcels, an adjacent common area, or community golf course.

720.3045, Florida Statutes 

• Provides that HOA governing documents cannot prohibit a property owner, or a guest, tenant, or invitee, from parking his or her personal vehicle, including a pickup truck, in the property owner’s driveway or in any other area at which the property owner or the property owner’s tenant, guest, or invitee has a right to park as governed by state, county, and municipal regulations.
• Regardless of any official insignia or visible designation, an HOA cannot prohibit a property owner, or a guest, tenant, or invitee, from parking his or her work vehicle, which is not a commercial motor vehicle (“commercial vehicle” is defined in s.320.01(25), F.S.), in the property owner’s driveway. 

720.3075(3)(b), Florida Statutes 

• HOA governing documents cannot prohibit a property owner from inviting, hiring, or allowing entry to a contractor or worker on the owner’s parcel solely because the contractor or worker is not on a preferred vendor list of the HOA. Additionally, HOA documents may not preclude a property owner from inviting, hiring, or allowing entry to a contractor or worker on his or her parcel solely because the contractor or worker does not have a professional or an occupational license. The HOA may not require a contractor or worker to present or prove possession of a professional or an occupational license to be allowed entry onto a property owner’s parcel.

720.3075(3)(c), Florida Statutes 

• HOA governing documents cannot prohibit operating a vehicle that is not a commercial motor vehicle in conformance with state traffic laws on public roads or rights-of-way or the property owner’s parcel.

720.3075(3)(d), Florida Statutes 

• Provides that a first responder, instead of only a law enforcement officer, that is a homeowner, or the tenant, guest, or invitee thereof may park his or her assigned first responder vehicle on public roads or rights-of-way within the HOA if this is an area where the homeowner, or the tenant, guest, or invitee thereof, otherwise has a right to park. First responders include law enforcement officers, firefighters, emergency medical technicians or paramedics, or volunteer law enforcement officers, firefighters, or emergency medical technicians or paramedics.

720.318, Florida Statutes

 Fines and Suspensions-HOA

• Requires that a fine or suspension levied by the board of administration may not be imposed unless the board first provides at least 14 days’ written notice of the parcel owner’s right to a hearing. Furthermore, it now requires that the hearing must be held within 90 days after issuance of the notice. The committee is authorized to hold the hearing by telephone or other electronic means. If the hearing is held by telephone or other electronic means, the notice must include the access information required to attend the telephonic conference or appear through the electronic medium.

720.305(2)(b), Florida Statutes 

• Provides that the committee must provide a written notice of the committee’s findings related to the violation to the owner any other applicable person within seven (7) days after the hearing. If applicable, the written notice of the committee’s findings must provide instructions on how the parcel owner or any occupant, licensee, or invitee of the parcel owner needs to fulfill a suspension or the date by which a fine must be paid.

720.305(2)(d), Florida Statutes 

• If a violation has been cured before the hearing or as specified in the applicable written notice, a fine or suspension may not be imposed.

720.305(2)(e), Florida Statutes 

• The HOA must indicate the due date on the notice of fine, which must be at least 30 days after the notice is delivered. Attorney fees and costs may not be awarded against the parcel owner based on actions taken by the board before the date set for the fine to be paid.

720.305(2)(f), Florida Statutes 

• If the committee approves a proposed fine or suspension levied by the board, and the violation is not cured or the fine is not paid per the written notice, reasonable attorney fees and costs may be awarded to the HOA. However, attorney fees and costs may not begin to accrue until after the due date for the fine and time for an appeal has expired.

720.305(2)(g), Florida Statutes 

• Now limits when an HOA may impose a fine or suspension. Provides that HOAs may not issue a fine or suspension for:
  • Leaving garbage receptacles at the curb or end of the driveway less than 24 hours before or after the designated garbage collection day or time.
  • Leaving holiday decorations or lights up longer than indicated in the governing documents, unless such decorations or lights are left up for longer than one (1) week after the association provides written notice of the violation to the parcel owner.

720.305(7), Florida Statues

 Assessments and Charges-HOA

• Clarifies that unpaid assessments and installments for assessments are only permitted to bear simple interest. Prohibits unpaid assessments and installments for assessments from bearing compound interest regardless of whether the governing documents prescribe a compound interest instead of a simple interest.

720.3085(3), Florida Statutes 

Fraudulent Voting Activities-HOA

• Expands upon the HOA election fraudulent voting activities, which constitute a first-degree misdemeanor, as follows:
  • Knowingly aiding, abetting, or advising a person in the commission of a fraudulent voting activity related to association elections.
  • Agreeing, conspiring, combining, or confederating with at least one other person to commit a fraudulent voting activity related to association elections.
  • Having knowledge of a fraudulent voting activity related to association elections and giving any aid to the offender with intent that the offender avoid or escape detection, arrest, trial, or punishment.

720.3065(2), Florida Statutes

This law takes effect on July 1, 2024. As you can see from the length and complexity of this bill, it is crucial for you to speak with your association attorney about the changes you need to implement to comply with these new laws. We will continue tracking bills and will update readers here on any developments.