HOA Legislative Update: Florida HB 657

House Bill 657 is the most significant piece of community association legislation moving through Tallahassee this session. Board members need to understand what it proposes, where it stands, and what it means for how associations operate.

As of early March 2026, the bill has cleared multiple House committees and was referred to the Senate Rules Committee on March 5th. It has not become law. The proposed effective date is July 1, 2026.

HOA Termination: How It Would Work

For the first time in Florida, HB 657 would establish a defined legal process for dissolving a homeowners' association. Currently, no clear statutory mechanism exists for termination, which has led to inconsistent outcomes statewide.

Under the bill, a parcel owner could initiate the process by submitting a petition signed by at least 20 percent of the association's voting interests. Once a valid petition is received, the board would have 60 days to hold a membership meeting to address it. That threshold is relatively low, meaning a motivated group of homeowners could trigger a formal board response without broad community support.

Actual dissolution, however, requires approval from at least two-thirds of total voting interests, not just those present at a meeting. That is a high threshold and would require genuine, widespread consensus to achieve.

After a plan of termination is approved, a termination trustee takes over to settle the association's debts, manage asset transfers, and complete the legal wind-down. The approved plan must be recorded in the public records of every county where the association operates.

One practical concern worth flagging: dissolving an HOA does not eliminate shared infrastructure. Stormwater systems, gated entries, pool facilities, and vendor contracts all require ongoing management. Without a governing association, responsibility for those assets becomes legally unclear. Bay News 9's coverage of the bill noted that while the bill targets poorly run associations, it leaves open questions about what happens to community assets after dissolution.

Governing Documents: Kaufman Language Requirement

HB 657 would require HOA and COA governing documents to include a statement declaring that the association operates under Florida's current statutes and any future legislative changes. This is known as Kaufman language.

For existing associations, a membership vote on adoption would be required by January 1, 2027. For associations formed after July 1, 2026, the requirement would be mandatory from formation.

In practical terms, this modernizes older governing documents and reduces conflicts that arise when board policies no longer align with current Florida law.

Presuit Mediation Is Eliminated

The bill removes the current requirement for presuit mediation before disputes can proceed to arbitration or litigation. Presuit mediation has served as a lower-cost step that often resolved conflicts before formal legal fees accumulated on both sides.

Removing it means disputes will move into arbitration or court faster. Association attorneys have noted this could increase legal costs for both associations and homeowners, particularly during any transition period. Boards should discuss with legal counsel whether current legal fee reserves reflect this potential change.

Community Association Court Program

HB 657 authorizes Florida circuit courts to establish a dedicated Community Association Court Program with jurisdiction over disputes arising under Chapters 718, 719, and 720. The intent is to route HOA and COA matters to a judicial process specifically designed for them rather than general civil court, which should improve consistency and reduce delays.

Each circuit that creates such a program would submit annual caseload reports to the Legislature. The Office of State Courts Administration would establish procedures and staffing requirements.

What Boards Should Do Now

Review your governing documents. If Kaufman language is not already present, ask your association attorney whether proactive amendment makes sense before a legislative mandate requires a membership vote under time pressure.

Make sure your board understands the termination provisions. Two-thirds approval is a high threshold, but boards should be able to speak to the process accurately if homeowners raise questions.

Talk to your attorney about dispute resolution costs. Removing presuit mediation from the process could shift your association's legal exposure and budget requirements.

Monitor the bill's progress at the Florida Senate's bill page, where real-time status and the full legislative analysis are available.

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