HoAs to hold an unplanned membership meeting to try to obtain an unlikely vote of the members will be expensive, especially for larger HoAs. 3. Amendment 885573: expands conflict-of-interest restrictions by prohibiting conflicted directors from participating in discussions about their proposed transaction and requires conflicted transactions to be approved by a majority of the association’ s total voting interests. Concerns: Imposes a gag on directors proposing conflict-of interest transactions and makes such transactions impossible for many HoAs. 4. Amendment 333675: HoA plans of termination must be approved by at least two-thirds of the total voting interests. Allows 20 % of members to petition for a termination meeting and requires petitioners to present a plan addressing disposition of common areas and assets. Concerns: Does not address the significant financial impact on local government or impact on member rights and duties affecting their property.
Legal Issues 1. Impairment of Contract( Art. I, § 10, Fla. Const.): requiring existing HoAs to operate under the Condominium Act alters the contractual relationship between members and associations. HoA declarations are binding private contracts; imposing new statutory obligations without consent constitutes a substantial impairment of those rights. 2. Procedural and Property Concerns in Termination( lines 601 – 706): The bill lacks provisions for proper transfer of HoA-owned infrastructure— such as roads, drainage systems, and open spaces— to local governments. Homeowner easement rights over common areas could also be extinguished or altered upon transfer, diminishing property use and value. 3. Separation of Powers Issues( lines 739 – 771): granting courts administrative authority to dissolve associations, impose penalties, and manage asset distribution conflicts with the separation of powers clause in Article II, § 3 of the Florida Constitution. 4. loss of Mediation Mechanisms( lines 95 – 128; 301 – 352): eliminating presuit mediation undermines Florida’ s long-standing policy favoring alternative dispute resolution, increasing litigation volume, legal costs, and insurance exposure.
Fiscal Impacts on Local Governments
If HoAs are dissolved, local governments could be forced to assume responsibility for privately owned roads, stormwater systems, and parks. These costs are substantial:
The Community Association’ s Institute’ s Florida Legislative Alliance( CAI-FLA) was formed in 1987 to provide perspective on how proposed legislation could impact people living and working in community associations. CAI-FLA is comprised of a diverse group of homeowner leaders, community managers and business partners representing all parts of the state. Each of FL’ s 8 CAI chapters nominates 2 delegates plus 4 at large members for a total of 20 delegates. This year, the chair of the Alliance is Chuck Schumacher, CMCA, AMS, CAM, a community manager from Naples. The
wo West Florida Chapter Delegates were Connie Morrow, a homeowner leader from Bradenton who sadly passed away in August 2025,, and Matt Kuisle, a Reserve Specialist from Tampa.
• Private roads: reconstruction to public standards.
• Drainage Systems: require inspection, redesign, and re-permitting under FDeP and NPDeS regulations. continued on page 21
WWW. CAIWeSTFlorIDA. org community • March 2026 15