Legislative Update for HOAs & Condos: HB 919 & SB 1114

As a realtor serving vibrant Miami-Dade County, witnessing the setbacks faced by Florida's community association members is disheartening. Today, I want to shed light on the recent actions of State Representative Daniel Perez, the incoming Speaker of the House, who appears to have become the enemy of owner-friendly provisions. In doing so, he has disregarded the needs of countless homeowners in favor of special interests such as CAI, specialized community association attorneys, and a small group of dictatorial board members. Let's delve into the details.

Earlier this year, State Representative Juan Carlos Porras (R-Miami) filed HB 919, while Senator Ana Maria Rodriguez (R-Miami) filed SB 1114. These bills, known as the "Community Association Bill of Rights," aimed to introduce important provisions to combat rampant fraud, embezzlement, and election misconduct within Florida's community associations. Initially, these bills offered promising solutions, but unfortunately, Perez played a detrimental role in altering their trajectory.

The revised House Bill 919, sponsored by Representative JC Porras, has been passed by the House Committee on Commerce with unanimous votes. However, the changes made to the original bill are quite disappointing. The revised bill adds more provisions to FS 720 (HOA ACT) without making any significant changes to the HOA Act. The revised bill seems to have a lot of threats for the "bad guys," but it doesn't provide any real action. Homeowners still need to fight for themselves, go to presuit mediation, file lawsuits, and pay the costs. The problem is that many homeowners don't have the money to fight for their rights.

One major concern for condo owners, especially those residing in high-rise buildings burdened by recent legislation, was the safeguarding of their mandatory reserve funds. However, Perez removed all provisions from these bills that referred to FS 718 (The Condo Act). It is essential to note that he did not openly oppose these provisions during committee hearings or request their removal. Instead, he wielded his influence behind closed doors.

Enforcement provisions contained in the originally filed bill were removed, and all the provisions that would have protected condo owners were also removed. This means that condo owners will have to pay a lot more money monthly (SB 154) without any protection for the quickly increasing funds in the reserve accounts. Kickbacks and embezzlement run rampant in Florida's condominiums, but the Legislature seems to be only concerned about Building Safety, not about the safety of the owners' money.

Ana Danton, the hero that fought The Hammocks Board in court, spoke to the House Commerce Committee about how devastating it is that any provisions protecting Condo Owners were removed from the bill. She does not support the amended version of the bill and is hopeful for better changes in next year’s legislative session.

Perez's actions didn't stop at stripping away protection for condo owners. He also managed to eliminate various enforcement measures from the remaining provisions in these bills. Although the remaining provisions may appear appealing at first glance, the reality is that the Enrolled 2 Version of HB 919 primarily benefits the affluent. Homeowners can only enforce their rights through litigation, necessitating costly battles against well-funded boards that have been accused of various malpractices. Additionally, homeowners under FS 720 are required to undergo the expensive process of presuit mediation, which often proves ineffective, before they can even proceed with litigation to enforce these new provisions.

What remains of the once-promising bill is nothing more than a "BILL FOR THE RICH." Homeowners now need substantial financial resources to enforce their rights, rendering these new "protections" practically inaccessible to the average homeowner.

To make matters worse, Perez went on to eliminate the only remaining significant protection for homeowners: the ability to file liens for fines. Even the E1 Version of HB 919 removed the provision allowing boards to file liens for fines [HB99E1]. Filing liens for unpaid fines was an effective method for dictatorial boards to compel owners to pay fines, even if those fines were imposed under questionable circumstances or to prevent opposing voices from participating in future board elections. Sadly, Perez successfully eradicated this crucial provision.

While the bill still has provisions addressing fraudulent voting activities in HOAs, the election language allowing cheating in elections is still in FS 720.306. The provisions are vague, allowing dictatorial boards to stay in power without meaningful action, which can only be stopped by a recall. Efforts to replace these vague election provisions with the provisions of the Condo Act (FS 718.112(2)(d)) have been unsuccessful.

However, amidst these setbacks, there is a glimmer of hope for community association members. Miami-Dade State Attorney Katherine Fernandez Rundle has emerged as a champion fighting for homeowners' rights. In press conferences and TV interviews, she has passionately advocated for the creation of laws to protect community association members from scams, kickbacks, embezzlement, fraud, and fraudulent voting activities. She has spearheaded grand jury reports that highlight the lack of justice within Florida's community associations and is diligently prosecuting those responsible for the over $4 million fraud in the HAMMOCKS COMMUNITY ASSOCIATION INCORPORATED. It is worth mentioning that she is likely to pursue higher office as a Democrat, posing a dilemma for Republicans.

As a realtor, I believe that it is unacceptable that more than fifty percent of the homeowners in the State of Florida are under an HOA or Condo, and they are not protected. It is time for our legislators to take action and provide meaningful protection for homeowners in HOAs and condos. The Hammocks Community Association is the largest HOA in Florida, and the recent alleged theft of $4.3 million dollars from the homeowners is unacceptable. We need legislators who will champion our cause and support bills like HB919 in their original versions.

The bill threatens "election fraud" with a misdemeanor of the first degree, but we all have seen over the years that many State Attorneys are unwilling to prosecute HOA violators, considering problems in HOAs a “CIVIL MATTER”. Where does that leave the homeowner who can prove that election fraud occurred?

Regrettably, Daniel Perez chose to ignore the voice of Katherine Fernandez Rundle and the pleas of millions of Floridians living in community associations. It appears that he disregards the well-being of his constituents and instead caters to the desires of a select group of specialized attorneys who profit at the expense of Florida's homeowners. Perhaps they will reciprocate his actions with significant campaign contributions.

In conclusion, it is evident that Daniel Perez's decisions have perpetuated injustice within Florida's community associations. As a realtor in Miami-Dade County, I stand with homeowners who deserve fair treatment and genuine protection of their rights. Let us remain vigilant in our advocacy for reform and work towards a future where homeowners' voices are heard, their rights are respected, and their investments are secure. Together, we can bring about positive change for Florida's community associations.

Read the Bills by clicking below: