The Florida Homeowners’ Association (HOA) Act

The Florida Homeowners’ Association Act, or HOA Act, is a comprehensive set of laws that govern homeowners’ associations (HOAs) in Florida. The act is found in Chapter 720 of the Florida Statutes and applies to all organizations that manage communal areas, including HOAs that typically govern single-family homes in a community or development. The act’s purpose is to protect the rights of HOA members while still allowing the associations to function. The act covers a wide range of issues, including:

• General Provisions: Definitions and other guiding principles
• Governing Documents: Bylaws, articles of incorporation, and declarations of covenants
• Membership and Voting: Voting rights, membership rights and obligations, meetings, quorums, and voting procedures
• Assessments: Collection of assessments
• Rules: Enforcing rules within the community
• Arbitration: Conducting arbitration

The act also requires HOAs to comply with the Florida Not-For-Profit Corporation Act, which contains provisions on corporate governance. HOA board members, property owners, and property managers should review the act periodically because it is constantly evolving. For example, the Florida legislature made changes to the act that took effect on October 1, 2023.

The Florida Homeowners’ Association (HOA) Act requires HOAs to keep certain documents on file, including:

• Meeting Minutes: Minutes from the past seven years
• Financial Records: Records from the past seven years
• Bids: Bids for work completed within the past year
• Insurance: Insurance policy information from the past seven years
• Member Information: Information on HOA members for at least one year
• Financial Statements: Annual financial statements prepared based on the association’s size

HOAs must also be transparent about their rules and meetings. For example, HOAs with more than 100 parcels must post their rules, budgets, covenants, and related documents on their websites, and HOAs with at least 1,000 parcels must prepare audited financial statements.

Please do not hesitate to contact Liz Welch at liz@synergisticcam.com or call 813-940-8588 for additional information or with questions.