Florida’s HB 657: Major HOA Reform Bill Letting Homeowners Terminate Their Associations

A new House bill has been introduced by representative JC Porras, known as HB 657, and it represents a substantial proposal aimed at changing the way association disputes are handled under Florida Statute Chapter 720. The bill also reaches into several governance issues affecting homeowners’ associations statewide, and most notably, it creates a statutory mechanism for terminating an HOA, something not previously addressed with this level of detail in Chapter 720.

One of the most significant components of HB 657 is the creation of a Community Association Court Program, which appears to authorize judicial circuits to establish a dedicated track or division for community association disputes. It appears the intent is to give homeowners and associations access to a judiciary familiar with Chapters 718, 719, and 720, potentially improving consistency in rulings and procedural efficiency. Importantly, the bill also allows for private arbitrators, but only within the context of the existing arbitration option, and only if the arbitrator is certified by the Department of Business and Professional Regulation. This distinction is meaningful because utilizing private arbitrators will likely increase availability and access to justice.

Another major feature of HB 657 is the introduction of Kaufman language into the governing documents of newly formed associations starting July 1, 2026. Kaufman language ensures that an association’s declaration automatically incorporates statutory amendments as they occur. This is a substantial benefit for future associations, as it prevents situations where outdated governing documents restrict the application of newer consumer-friendly changes to the Homeowners’ Association Act. For existing associations, the bill requires a membership meeting on January 1, 2027, where the owners must vote on whether to amend their declaration to include Kaufman language. If the measure passes by the required majority, the amendment becomes part of the declaration. This provision is likely to be welcomed by homeowners, as it modernizes documents and helps ensure they receive the full benefit of future legislative reforms.

HB 657 also introduces a detailed termination process for homeowners’ associations, drawing inspiration from the condominium termination procedures found in Chapter 718. Under the bill, if twenty percent of the membership petitions for termination, the board must call a meeting within sixty days. If two-thirds of the membership approves termination at that meeting, the association may proceed with dissolution under the procedures outlined in the bill, with judicial oversight ensuring proper handling of assets, debts, and governance during the wind-down period. This could provide a meaningful path forward for communities that have become dysfunctional, insolvent, or unable to operate effectively.

As a whole, HB 657 represents a thoughtful but far-reaching restructuring of Florida’s community association dispute-resolution framework. The establishment of a court program tailored to association issues, the incorporation of Kaufman language into governing documents, and the creation of an HOA termination process are all major reforms that could meaningfully shift the balance of association governance throughout the state. While the bill offers several advantages for homeowners, it will also require careful implementation to avoid unintended consequences and to ensure fairness for both associations and their members. As this legislation moves forward, our firm will continue monitoring its progress and offering guidance to help homeowners and associations understand the practical implications of these proposed changes.

The attorneys at Perez Mayoral, P.A. are dedicated to helping you understand the law and how it impacts you. If you have any questions, please reach out to schedule a consultation.