Florida 2023 2023 Regular Session

Florida House Bill H0545 Analysis / Analysis

Filed 03/25/2023

                    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.
8
 
 
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. 
                                                
8
 Id.   STORAGE NAME: h0545.RRS 	PAGE: 4 
DATE: 3/25/2023 
  
 
C. DRAFTING ISSUES OR OTHER COMMENTS: 
None. 
 
IV.  AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES