HB 1033 2022
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to homeowners' associations; amending 2
s. 720.311, F.S.; defining the term "dispute"; 3
authorizing parties to initiate nonbinding arbitration 4
rather than presuit mediation for certain disputes; 5
creating s. 720.319, F.S.; creating the Office of the 6
Homeowners' Association Ombudsman within the 7
Department of Business and Professional Regulation; 8
providing for funding of the office; directing the 9
Governor to appoint the ombudsman; requiring the 10
ombudsman to be an attorney; prohibiting the 11
ombudsman, officers, and full -time employees from 12
holding certain positions, engaging in certain 13
activities, or receiving certain remuneration; 14
providing for the pr incipal location of the 15
ombudsman's office; authorizing the ombudsman to 16
establish branch offices under specified 17
circumstances; providing for the powers and duties of 18
the ombudsman; providing an effective date. 19
20
Be It Enacted by the Legislature of the State of Florida: 21
22
Section 1. Subsection (1) of section 720.311, Florida 23
Statutes, is amended and subsection (3) is added to that section 24
to read: 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
720.311 Dispute resolution. — 26
(1)(a) The Legislature finds that alternative dispute 27
resolution has made progress in reducing court dockets and 28
trials and in offering a more efficient, cost -effective option 29
to litigation. The filing of any petition for arbitration or the 30
serving of a demand for presuit mediation as provided for in 31
this section shall toll t he applicable statute of limitations. 32
Any recall dispute filed with the department under s. 33
720.303(10) shall be conducted by the department in accordance 34
with the provisions of ss. 718.112(2)(j) and 718.1255 and the 35
rules adopted by the division. In addit ion, the department shall 36
conduct binding arbitration of election disputes between a 37
member and an association in accordance with s. 718.1255 and 38
rules adopted by the division. Election disputes and recall 39
disputes are not eligible for presuit mediation; t hese disputes 40
must be arbitrated by the department or filed in a court of 41
competent jurisdiction. At the conclusion of an arbitration 42
proceeding, the department shall charge the parties a fee in an 43
amount adequate to cover all costs and expenses incurred b y the 44
department in conducting the proceeding. Initially, the 45
petitioner shall remit a filing fee of at least $200 to the 46
department. The fees paid to the department shall become a 47
recoverable cost in the arbitration proceeding, and the 48
prevailing party in an arbitration proceeding shall recover its 49
reasonable costs and attorney fees in an amount found reasonable 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
by the arbitrator. The department shall adopt rules to 51
effectuate the purposes of this section. 52
(b) As used in this section, the term "dispute" means any 53
disagreement between two or more parties that involves: 54
1. The authority of the board of directors, under this 55
chapter or an association document, to: 56
a. Require any owner to take any action, or not to take 57
any action, involving that owner's parcel or the appurtenances 58
thereto. 59
b. Alter or add a common area or element. 60
2. The failure of a governing body, when required by this 61
chapter or an association document, to: 62
a. Properly conduct elections. 63
b. Give adequate notice of meetings or o ther actions. 64
c. Properly conduct meetings. 65
d. Allow inspection of books and records. 66
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The term "dispute" does not include any disagreement that 68
primarily involves: title to any parcel or common area; the 69
interpretation or enforcement of any warranty; the levy of a fee 70
or assessment, or the collection of an assessment levied against 71
a party; the eviction or other removal of a tenant from a 72
parcel; alleged breaches of fiduciary duty by one or more 73
directors; or claims for damages to a parcel based upon the 74
alleged failure of the association to maintain the common area 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
or community property. 76
(3) In lieu of the initiation of presuit mediation under 77
this section, a party may submit an eligible dispute to 78
nonbinding arbitration in accordance with s. 718.1255. 79
Section 2. Section 720.319, Florida Statutes, is created 80
to read: 81
720.319 Homeowners' association ombudsman. — 82
(1) ADMINISTRATION; APPOINTMENT; LOCATION. — 83
(a) There is created an Office of the Home owners' 84
Association Ombudsman to be located, for administrative 85
purposes, within the Department of Business and Professional 86
Regulation. The functions of the office shall be funded by the 87
General Appropriations Act. 88
(b) The Governor shall appoint the omb udsman. The 89
ombudsman must be an attorney admitted to practice before the 90
Florida Supreme Court and shall serve at the pleasure of the 91
Governor. The ombudsman, an officer, or a full -time employee of 92
the ombudsman's office may not actively engage in any oth er 93
business or profession that directly or indirectly relates to or 94
conflicts with his or her work in the ombudsman's office; serve 95
as the representative of any political party, executive 96
committee, or other governing body of a political party; serve 97
as an executive, officer, or employee of a political party; 98
receive remuneration for activities on behalf of any candidate 99
for public office; or engage in soliciting votes or other 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
activities on behalf of a candidate for public office. The 101
ombudsman, an officer , or a full-time employee of the 102
ombudsman's office may not become a candidate for election to 103
public office unless he or she first resigns from his or her 104
office or employment. 105
(c) The ombudsman shall maintain his or her principal 106
office at a place conv enient to the department, which will 107
enable the ombudsman to expeditiously carry out the duties and 108
functions of his or her office. The ombudsman may establish 109
branch offices elsewhere in the state upon the concurrence of 110
the Governor. 111
(2) POWERS AND DUTIES.—The ombudsman has the powers 112
necessary to carry out the duties of his or her office, 113
including, but not limited to: 114
(a) Having access to and use of all files and records of a 115
homeowners' association. 116
(b) Employing professional and clerical staff a s necessary 117
for the efficient operation of the office. 118
(c) Preparing and issuing reports and recommendations to 119
the Governor, the department, the President of the Senate, and 120
the Speaker of the House of Representatives on any matter or 121
subject within the jurisdiction of chapter 720. 122
(d) Acting as a liaison between the department, parcel 123
owners, boards of directors, board members, community 124
association managers, and other affected parties. The ombudsman 125
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shall develop policies and procedures to assist par cel owners, 126
boards of directors, board members, community association 127
managers, and other affected parties to understand their rights 128
and responsibilities, as set forth in this chapter, and the 129
governing documents that govern their respective associations. 130
The ombudsman shall coordinate and assist in the preparation and 131
adoption of educational and reference material, and shall 132
endeavor to coordinate with private or volunteer providers of 133
these services, so that the availability of these resources is 134
made known to the largest possible audience. 135
(e) Monitoring and reviewing procedures and disputes 136
concerning elections or meetings. 137
(f) Making recommendations to the department for changes 138
in rules and procedures for the filing, investigation, and 139
resolution of complaints filed by parcel owners, associations, 140
and managers. 141
(g) Providing resources to assist members of boards of 142
directors and officers of associations to carry out their powers 143
and duties consistent with this chapter and the governing 144
documents that govern the association. 145
(h) Encouraging and facilitating voluntary meetings 146
between parcel owners, boards of directors, board members, 147
community association managers, and other affected parties when 148
the meetings may assist in resolving a dispute wit hin a 149
homeowners' association before a person submits a dispute for a 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
formal or administrative remedy. It is the intent of the 151
Legislature that the ombudsman act as a neutral resource for 152
both the rights and responsibilities of parcel owners, 153
associations, and board members. 154
(i) Assisting with the resolution of disputes between 155
parcel owners and the association, or between parcel owners, if 156
applicable. 157
Section 3. This act shall take effect July 1, 2022. 158