HB 657 Explained: Florida’s New Community Association and HOA Termination Bill (2026 Update)
Florida’s proposed HB 657 introduces major reforms to how community associations and homeowners associations (HOAs) operate, resolve disputes, and—when necessary—legally dissolve. Whether you’re a homeowner, investor, or property manager, this bill could significantly reshape HOA governance across the state.
What HB 657 Does
HB 657 is a comprehensive update to Florida’s community association laws. It restructures the dispute-resolution process, introduces a new court program dedicated to association matters, and creates a clear legal pathway for terminating an HOA—a process that has been confusing and inconsistent under existing law.
Key Changes in HB 657
1. Removal of Presuit Mediation
The bill removes the requirement that HOAs and homeowners participate in presuit mediation before escalating a dispute. This change allows issues to move more quickly into arbitration or the newly created court program.
2. Required Updates to HOA Governing Documents
Every community association must:
Add a new state-required statement to its governing documents, or
Hold a vote by a specific deadline to amend those documents.
This ensures all associations align with new legal standards.
3. Arbitration Must Be Conducted by State-Approved Arbitrators
Arbitration proceedings for community association disputes must be handled only by arbitrators authorized under state guidelines, ensuring consistent processes and decisions.
4. A Full Legal Framework to Terminate an HOA
HB 657 establishes an official, detailed procedure for dissolving an HOA. This is one of the most significant changes in the bill.
The HOA Termination Process Includes:
Creating a compliant Plan of Termination
Obtaining member approval
Submitting the plan to the new Community Association Court Program
Recording the plan in the public records of every county where the association exists
This adds structure, transparency, and legal oversight to a process that previously lacked consistent statewide standards.
5. Creation of the Community Association Court Program
The bill authorizes Florida’s circuit courts to establish a specialized Community Association Court Program dedicated to HOA and condo association matters.
This court program can:
Review and approve HOA termination plans
Manage HOA-related disputes
Respond to petitions from members
Oversee compliance during and after termination
Each judicial circuit must submit an annual report to the Legislature summarizing program activity.
6. Introduction of the Termination Trustee
When an HOA is terminated, a Termination Trustee takes over. Their responsibilities include:
Paying lawful debts
Distributing remaining assets
Completing required legal and administrative wind-down tasks
This ensures associations dissolve cleanly and fairly.
7. Board Responsibilities After Termination Approval
Even after a termination plan is approved, the association’s board must continue fulfilling certain duties until the trustee completes the dissolution process.
8. New Unlawful Actions Defined
HB 657 outlines specific prohibited actions by associations, officers, or directors. This adds accountability and protects homeowners from misconduct during transitional periods such as termination.
9. Administrative Oversight and Funding
The Office of the State Courts Administrator (OSCA) will help oversee the new court program.
Funding will come from the Department of Business and Professional Regulation (DBPR).
Why HB 657 Matters
HB 657 aims to modernize Florida’s community association laws by creating:
More transparent governance
A faster, structured path for resolving association disputes
A consistent and legally supported process for terminating HOAs
Better homeowner protections and clearer board responsibilities
As Florida continues to grow, this bill would significantly reshape how communities are managed and how associations are held accountable.
More info here: https://www.flsenate.gov/Session/Bill/2026/657
