This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1341.RRS
DATE: 3/25/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1341 Provision of Homeowners' Association Rules and Covenants
SPONSOR(S): Arrington
TIED BILLS: IDEN./SIM. BILLS: SB 788
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. The HOA’s declaration of
covenants establishes the community’s basic covenants and restrictions. The rules and regulations typically
address matters of everyday policy.
An HOA must maintain certain records which constitute the official records of the HOA, which includes a copy
of the HOA’s declaration of covenants, amendments, and current HOA rules.
The official records must be maintained within the state for at least 7 years and must be made available to a
parcel owner for inspection or photocopying. An HOA may comply by having a copy of the official records
available for inspection or copying in the community or, at the option of the HOA, by making the records
available to a parcel owner electronically or by allowing the records to be viewed in electronic format on a
computer screen and printed upon request.
The bill requires an HOA to provide the following:
Before October 1, 2023, a physical or digital copy of the HOA's rules and covenants to every member
of the HOA.
A physical or digital copy of the HOA's rules and covenants to every new member of the HOA.
An updated copy of the amended rules or covenants when an HOA's rules or covenants are amended
to every member of the association. An HOA may adopt rules establishing standards for the manner of
distribution and timeframe for providing copies of updated rules or covenants.
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: h1341.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 Governing Documents
An HOA’s governing documents include the:
Recorded declaration of covenants for a community and all duly adopted amendments thereto;
HOA’s articles of incorporation and bylaws and any duly adopted amendments thereto; and
Rules and regulations adopted under the authority of the recorded declaration, articles of
incorporation, or bylaws and any duly adopted amendments thereto.
4
The declaration of covenants, much like a constitution, establishes the community’s basic covenants
and restrictions.
5
The articles of incorporation establish the HOA’s existence, basic structure, and
governance.
6
The bylaws govern the HOA’s operation and administration, while the rules and
regulations typically supplement the other documents, addressing matters of everyday policy.
7
Unless otherwise provided in the governing documents or required by law, an HOA’s governing
documents may be amended by the affirmative vote of two-thirds of the HOA’s voting interests.
8
Within
30 days after recording a governing document amendment, the HOA must give its members copies
thereof unless a copy was provided to the members before the vote on the amendment, in which case
the HOA must only provide the members with notice of the amendment’s adoption.
9
Official Records
1
S. 720.301(9), F.S.
2
See generally ch. 720, F.S.
3
S. 720.311, F.S.
4
S. 720.301(8), F.S.
5
Joseph Adams, HOA Governing Documents Explained (July 1, 2018),
https://www.floridacondohoalawblog.com/2018/07/01/hoa-governing-documents-explained/ (last visited Mar. 25, 2023).
6
Id.
7
Id.
8
S. 720.306(1), F.S.
9
Id. STORAGE NAME: h1341.RRS PAGE: 3
DATE: 3/25/2023
An HOA must maintain each of the following items, when applicable, which constitute the official
records of the HOA:
10
A copy of the HOA’s:
o declaration of covenants and each amendment,
o bylaws and each amendment,
o articles of incorporation and each amendment, and
o current rules.
Copies of any plans, specifications, permits, and warranties related to improvements
constructed on the common areas or other property that the HOA is obligated to maintain,
repair, or replace.
The minutes of all meetings of the board of directors and of the members, which minutes must
be retained for at least 7 years.
A current roster of all members and their mailing addresses and parcel identifications. The HOA
must maintain the electronic mailing addresses and the numbers designated by members for
receiving notice sent by electronic transmission of those members consenting to receive notice
by electronic transmission. The electronic mailing addresses and numbers provided by unit
owners to receive notice by electronic transmission must be removed from HOA records when
consent to receive notice by electronic transmission is revoked. However, the HOA is not liable
for an erroneous disclosure of the electronic mail address or the number for receiving electronic
transmission of notices.
All of the HOA’s insurance policies, which must be retained for at least 7 years.
A current copy of all contracts to which the HOA is a party, including, without limitation, any
management agreement, lease, or other contract under which the HOA has any obligation or
responsibility. Bids received by the HOA for work to be performed must also be considered
official records and must be kept for a period of 1 year.
The financial and accounting records of the HOA, kept according to good accounting practices.
All financial and accounting records must be maintained for a period of at least 7 years. The
financial and accounting records must include:
o Accurate, itemized, and detailed records of all receipts and expenditures.
o A current account and a periodic statement of the account for each member, designating
the name and current address of each member who is obligated to pay assessments,
the due date and amount of each assessment or other charge against the member, the
date and amount of each payment on the account, and the balance due.
o All tax returns, financial statements, and financial reports of the HOA.
o Any other records that identify, measure, record, or communicate financial information.
A copy of the disclosure summary.
Ballots, sign-in sheets, voting proxies, and all other papers and electronic records relating to
voting by parcel owners, which must be maintained for at least 1 year after the date of the
election, vote, or meeting.
All affirmative acknowledgments made pursuant to s. 720.3085(3)(c)3, F.S.
All other written records of the HOA which are related to the operation of the HOA.
Access to Official Records
The official records must be maintained within the state for at least 7 years and be made available to a
parcel owner for inspection or photocopying within 45 miles of the community or within the county in
which the HOA is located within 10 business days after receipt by the board or its designee of a written
request.
An HOA may comply by having a copy of the official records available for inspection or copying in the
community or, at the option of the HOA, by making the records available to a parcel owner
electronically via the Internet or by allowing the records to be viewed in electronic format on a computer
screen and printed upon request.
10
S. 720.303(4), F.S. STORAGE NAME: h1341.RRS PAGE: 4
DATE: 3/25/2023
If the HOA has a photocopy machine available where the records are maintained, it must provide
parcel owners with copies on request during the inspection if the entire request is limited to no more
than 25 pages. An association must allow a member or authorized representative to use a portable
device, including a smartphone, tablet, portable scanner, or any other technology capable of scanning
or taking photographs, to make an electronic copy of the official records in lieu of providing the member
or authorized representative with a copy of such records. The association may not charge a fee to a
member or his or her authorized representative for the use of a portable device.
11
The failure of an association to provide access to the records within 10 business days after receipt of a
written request submitted by certified mail, return receipt requested, creates a rebuttable presumption
that the association willfully failed to comply with this requirement.
12
A member who is denied access to official records is entitled to the actual damages or minimum
damages for the HOA’s willful failure to comply with this requirement. The minimum damages are to be
$50 per calendar day up to 10 days, the calculation to begin on the 11th business day after receipt of
the written request.
13
The HOA may adopt reasonable written rules governing the frequency, time, location, notice, records to
be inspected, and manner of inspections, but may not require a parcel owner to demonstrate any
proper purpose for the inspection, state any reason for the inspection, or limit a parcel owner’s right to
inspect records to less than one 8-hour business day per month.
14
The following records are not accessible to members or parcel owners:
15
Any record protected by the lawyer-client privilege as described in s. 90.502, F.S., and any
record protected by the work-product privilege.
Information obtained in connection with the approval of the lease, sale, or other transfer of a
parcel.
Information obtained in a gated community in connection with guests’ visits to parcel owners or
community residents.
Personnel records of HOA or management company employees.
Medical records of parcel owners or community residents.
Personal identifying information of a parcel owner other than as provided for HOA notice
requirements, excluding the person’s name, parcel designation, mailing address, and property
address.
Any electronic security measure that is used to safeguard data, including passwords.
The software and operating system which allows the manipulation of data; however, the data is
part of the official records.
All affirmative acknowledgments made pursuant to s. 720.3085(3)(c)3, F.S.
Effect of the Bill
The bill requires an HOA to provide the following:
Before October 1, 2023, a physical or digital copy of the HOA's rules and covenants to every
member of the HOA.
A physical or digital copy of the HOA's rules and covenants to every new member of the HOA.
An updated copy of the amended rules or covenants when an HOA's rules or covenants are
amended to every member of the association. An HOA may adopt rules establishing standards
for the manner of distribution and timeframe for providing copies of updated rules or covenants.
The bill provides an effective date of July 1, 2023.
11
S. 720.303(5), F.S.
12
S. 720.303(5)(a), F.S.
13
S. 720.303(5)(b), F.S.
14
S. 720.303(5)(c), F.S.
15
S. 720.303(5)(c)1.-9., F.S. STORAGE NAME: h1341.RRS PAGE: 5
DATE: 3/25/2023
B. SECTION DIRECTORY:
Section 1: Amends s. 720.303, F.S., relating to rules and covenants of a homeowners’ association.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEME NT
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:
None.
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.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES