HB 657 and Board Accountability: Understanding Florida’s New Governance
New Standards for Florida Community Associations
With the introduction of HB 657, expected to take effect in July 2026, Florida is set to implement significant changes to the regulatory framework governing Homeowners Associations (HOAs). While much of the discussion has focused on termination procedures, the bill also introduces critical updates regarding board accountability and governance standards.
For stakeholders on all sides—whether you are a homeowner, a board member, or a property manager—understanding these changes is essential. The new legislation aims to reduce ambiguity in the Florida Statutes, creating clearer guidelines for what constitutes compliant association management.
1. Codifying "Unlawful Actions"
One of the primary goals of HB 657 is to reduce the "gray areas" often found in disputes regarding fiduciary duty. The bill moves to explicitly define "Unlawful Actions" for associations, officers, and directors.
Previously, determining misconduct often required complex litigation to interpret broad statutory language. The new bill provides a more specific list of prohibited behaviors. This clarity is designed to protect the community's financial health and ensure fair governance.
Key areas of focus include:
Conflict of Interest Transparency: Stricter guidelines regarding vendors, contracts, and financial interests held by directors.
Official Records Access: Reinforced mandates ensuring members have timely access to association records, reducing friction between boards and residents.
Due Process in Fining: Clearer statutory requirements for how fines are levied and how independent committees must operate.
2. Streamlining Dispute Resolution
Historically, disputes between homeowners and associations have been slowed by mandatory "presuit mediation." While intended to foster compromise, this step often resulted in delays and increased legal costs for both parties without resolving the core issue.
HB 657 proposes removing the mandatory presuit mediation requirement.
Instead, the bill introduces the Community Association Court Program. This specialized division within the circuit courts will handle HOA and condo association matters exclusively. The goal is to ensure that cases are heard by judges with specific expertise in Florida Statutes 718 and 720, leading to:
Consistency: More predictable rulings based on established precedent.
Efficiency: A faster timeline for resolving disputes, allowing communities to move forward.
Cost-Effectiveness: Reduced time spent in pre-litigation administrative procedures.
3. The Role of Independent Oversight
The bill also expands the mechanisms for state and judicial oversight. By formalizing the role of a Termination Trustee and granting the new Court Program the ability to oversee compliance, the state is creating a safety net for communities facing operational crises.
If an association fails to function according to its governing documents or state law, the courts will have clearer authority to intervene. This ensures that assets are protected and that the association can be steered back toward compliance—or dissolved in an orderly fashion—under professional supervision.
Preparing for 2026
HB 657 represents a shift toward more regulated, transparent community management in Florida.
For Boards: It is vital to review current governing documents and operational procedures to ensuring they align with these incoming statutory standards.
For Homeowners: The bill provides a clearer understanding of your rights and the expected standards of conduct for your community's leadership.
Navigate the Changes with Confidence
As Florida’s community association laws evolve, having experienced legal counsel is invaluable. At Bryan Law, we monitor these legislative updates closely to provide our clients with up-to-date, actionable advice.
Whether you need a review of your governing documents or guidance on a governance dispute, we are here to help you navigate the changing legal landscape.
Contact us today at 954-383-0303