In 2024, the Florida Statute 720 underwent significant amendments through Senate Bill 1203, which brought about substantial changes affecting homeowner associations (HOAs) across the state. On Jan 9 of this year, the Florida House Bill HB 1243 and Senate Bill SB 1203 proposed requirements for homeowner associations governed under FS Chapter 720 to operate an association website by January 1, 2025 and dictates certain minimum content including official records. On March 7th., Florida Senate Bill SB 1203 passed unanimously in the Senate; and on March 8, House Bill HB 1243 died in the Commerce Committee. On May 31, Governor Ron DeSantis signed SB 1203 into law.
These amendments aim to enhance transparency, accountability, and community participation in the management of HOAs. Here’s a detailed breakdown of the key aspects of these changes: Below is a summary of seven key points of this new Florida law that goes into effect on July 1, 2024.
- Transparency and Access to Documents: The new law mandates that HOAs with 100 units or more must have a website by January 1, 2025. This website is required to host digital copies of essential documents, such as the association’s governing documents, meeting minutes, financial records, and more. This measure is intended to ensure that all community members have easy and continuous access to important information, promoting transparency within the community.
- Ethical Standards and Criminal Penalties: There are now criminal penalties for HOA officers, directors, and property managers who accept kickbacks, aimed at curbing corruption and ensuring that decisions are made in the best interests of the community without personal gain.
- Professional Requirements for Managers: Community association managers and firms are required to meet specific educational standards and adhere to professional norms. This is to ensure competent management of HOAs that protects the interests of community associations.
- Meeting Regulations: The amendment also introduces stricter rules for the conduct of HOA meetings, including requirements for proper notice and facilitating easier member attendance and participation.
- Voting Integrity and Member Rights: New provisions are included to safeguard member rights, including voting rights in elections and other important community matters. Measures to prevent fraudulent voting activities are also part of this legislative update.
- Financial Accountability: Enhanced financial reporting and regular audits are mandated to ensure the financial transparency and integrity of the HOAs.
- Architectural and Aesthetic Guidelines: Clear guidelines regarding architectural control and aesthetic standards must be uniformly enforced by the HOAs, promoting fairness and maintaining the desired community aesthetics.
These amendments were passed with the intent to create a more structured and transparent framework for the management of homeowner associations, ensuring that community interests are upheld and that management practices are held to higher standards (KSN Law) (trackbill.com) (Florida HOA Website).
Below is an excerpt of the law amended March 7, 2024.
You can download a copy of the bill from the Florida Senate website here.
Professional practice standards; liability; community association manager requirements.—
720.303(3)(b), Florida Statutes
(CODING: Words Emphasis added for convenience.)
- A community association manager or community association management firm that is authorized by contract to provide community association management services to a homeowners’ association shall do all of the following:
- Provide to the members of the homeowners’ association the name and contact information for each community association manager or representative of a community association management firm assigned to the homeowners’ association, the manager’s or representative’s hours of availability, and a summary of the duties for which the manager or representative is responsible. The homeowners’ association shall also post this information on the association’s website or application required under s. 720.303(4)(b). The community association manager or community association management firm shall update the homeowners’ association and its members within 14 business days after any change to such information.
OFFICIAL RECORDS
720.303(4)(b), Florida Statutes
(CODING: Words Emphasis added for convenience.)
- By January 1, 2025, an association that has 100 or more parcels shall post the following documents on its website or make available such documents through an application that can be downloaded on a mobile device:
- The articles of incorporation of the association and each amendment thereto.
- The bylaws of the association and each amendment thereto.
- The declaration of covenants and a copy of each amendment thereto.
- The current rules of the association.
- A list of all current executory contracts or documents to which the association is a party or under which the association or the parcel owners have an obligation or responsibility and, after bidding for the related materials, equipment, or services has closed, a list of bids received by the association within the past year.
- The annual budget required by subsection (6) and any proposed budget to be considered at the annual meeting.
- The financial report required by subsection (7) and any monthly income or expense statement to be considered at a meeting.
- The association’s current insurance policies.
- The certification of each director as required by s. 720.3033(1)(a).
- All contracts or transactions between the association and any director, officer, corporation, firm, or association that is not an affiliated homeowners’ association or any other entity in which a director of an association is also a director or an officer and has a financial interest.
- Any contract or document regarding a conflict of interest or possible conflict of interest as provided in ss. 468.436(2)(b)6. and 720.3033(2).
- Notice of any scheduled meeting of members and the agenda for the meeting, as required by s. 720.306, at least 14 days before such meeting. The notice must be posted in plain view on the homepage of the website or application, or on a separate subpage of the website or application labeled “Notices” which is conspicuously visible and linked from the homepage. The association shall also post on its website or application any document to be considered and voted on by the members during the meeting or any document listed on the meeting agenda at least 7 days before the meeting at which such document or information within the document will be considered.
- Notice of any board meeting, the agenda, and any other document required for such meeting as required by subsection (3), which must be posted on the website or application no later than the date required for notice under subsection (3).
- The association’s website or application must be accessible through the Internet and must contain a subpage, web portal, or other protected electronic location that is inaccessible to the general public and accessible only to parcel owners and employees of the association.
- Upon written request by a parcel owner, the association must provide the parcel owner with a username and password and access to the protected sections of the association’s website or application which contains the official documents of the association.
- The association shall ensure that the information and records described in paragraph (5)(g), which are not allowed to be accessible to parcel owners, are not posted on the association’s website or application. If protected information or information restricted from being accessible to parcel owners is included in documents that are required to be posted on the association’s website or application, the association must ensure the information is redacted before posting the documents. Notwithstanding the foregoing, the association or its authorized agent is not liable for disclosing information that is protected or restricted under paragraph (5)(g) unless such disclosure was made with a knowing or intentional disregard of the protected or restricted nature of such information.
720.303(4)(c), Florida Statutes
(CODING: Words Emphasis added for convenience.)
- The association shall adopt written rules governing the method or policy by which the official records of the association are to be retained and the time period such records must be retained pursuant to paragraph (a). Such information must be made available to the parcel owners through the association’s website or application.
If you are an HOA president or Association manager and you do not have a website, then not only are you losing out on a powerful commuication medium to your residents, but now you are no longer in legal compliance. Contact paperboat today to get an incredible HOA website built.