This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0545.RRS
DATE: 3/25/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 545 Fines Levied by Homeowners’ Associations
SPONSOR(S): Arrington and others
TIED BILLS: IDEN./SIM. BILLS: SB 872
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development
Subcommittee
Wright Anstead
2) Civil Justice Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
A homeowners’ association (HOA) is an association of residential property owners in which voting membership
is made up of parcel owners and membership is a mandatory condition of parcel ownership. HOAs are
authorized to impose assessments that, if unpaid, may become a lien on the parcel.
HOAs may levy fines for failing to comply with any provision in the HOA’s governing documents. No fine may
exceed $100 per violation, although a fine may be levied on the basis of each day of a continuing violation
provided that fine does not exceed $1,000 in the aggregate. Fines may not become a lien on the property
unless the fines exceed $1,000.
The bill lowers:
The maximum aggregate fine amount to $500.
The amount when a fine may become a lien on the property to $500.
The bill does not appear to have a fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2023. STORAGE NAME: h0545.RRS PAGE: 2
DATE: 3/25/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
A homeowners’ association (HOA) is an association of residential property owners in which voting
membership is made up of parcel owners and membership is a mandatory condition of parcel
ownership. HOAs are authorized to impose assessments that, if unpaid, may become a lien on the
parcel.
1
Only HOAs whose covenants and restrictions include mandatory assessments are regulated by ch.
720, F.S., the Homeowners’ Association Act (HOA Act). Like a condominium, an HOA is administered
by an elected board of directors. The powers and duties of an HOA include the powers and duties
provided in the HOA Act, and in the association’s governing documents, which include the recorded
covenants and restrictions, together with the bylaws, articles of incorporation, and duly adopted
amendments to those documents.
2
No state agency has direct oversight over HOAs. However, Florida law provides for a limited mandatory
binding arbitration program, administered by the Division of Condominiums, Timeshares and Mobile
Homes, within the Department of Business and Professional Regulation, for certain election and recall
disputes.
3
HOA Fines
Owners, tenants, and guests must comply with an HOA’s declaration, bylaws, and rules. HOAs may
levy fines against or suspend the right of a parcel owner, occupant, or a guest of an owner or occupant,
to use the common areas
4
or any other association property for failing to comply with any provision in
the HOA’s governing documents. A suspension for failing to comply with an HOA’s declaration, bylaws,
or rules may not be for an unreasonable amount of time.
5
No fine may exceed $100 per violation, although a fine may be levied on the basis of each day of a
continuing violation provided that fine does not exceed $1,000 in the aggregate. However, a fine may
exceed $1,000 if the HOA’s governing documents authorize it. Fines may not become a lien on the
property unless the fines exceed $1,000.
6
Before an HOA levies a fine or a suspension, it must give the person receiving the fine or suspension at
least 14 days’ notice of an opportunity for a hearing. A fine and suspension committee of at least three
members selected by the board must hold a hearing to reject or approve the fine or suspension. Board
directors, officers, and employees of the HOA and family of such people may not serve on the
committee. The committee must approve the fine or suspension by majority vote otherwise the
proposed fine or suspension may not be imposed.
7
1
S. 720.301(9), F.S.
2
See generally ch. 720, F.S.
3
S. 720.311, F.S.
4
This does not apply to that portion of common areas used to provide access or utility services to the parcel. A
suspension may not prohibit an owner or tenant of a parcel from having vehicular and pedestrian ingress to and egress
from the parcel, including, but not limited to, the right to park. S. 720.305(2)(a), F.S.
5
S. 720.305, F.S.
6
S. 720.305(2), F.S.
7
Id. STORAGE NAME: h0545.RRS PAGE: 3
DATE: 3/25/2023
A fine is due five days after written notice of the approved fine is provided to the parcel owner,
occupant, or guest. Written notice of the fine or suspension must be provided to the person by mail or
hand delivery.
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Effect of the Bill
The bill lowers:
The maximum aggregate fine amount to $500.
The amount when a fine may become a lien on the property to $500.
B. SECTION DIRECTORY:
Section 1: Amends s. 720.305, F.S.; relating to fines levied by homeowners’ associations.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may lower the amount that homeowners pay in fines to HOAs.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
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Id. STORAGE NAME: h0545.RRS PAGE: 4
DATE: 3/25/2023
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES