Florida House Passes Landmark Bill Creating Path for Homeowners Associations to Disband Permanently

Florida's House Bill 657 proposes a controversial path for HOAs to disband and creates specialized courts, despite expert warnings over infrastructure oversight.

By: AXL Media

Published: Mar 10, 2026, 9:28 AM EDT

Source: The Real Deal

Legislative Push Against Association Mismanagement Florida lawmakers are moving to radically alter the governance of residential communities with House Bill 657, which recently cleared the House of Representatives. The legislation is a direct response to decades of systemic issues within Homeowners Associations (HOAs) and Condominium Associations (COAs), including allegations of embezzlement, election fraud, and a lack of transparency. Rep. Juan Carlos Porras, a primary supporter of the bill, characterized HOAs as a "failed experiment," arguing that these entities have exercised excessive power over residents without sufficient state oversight.

The Mechanics of HOA Dissolution Under the proposed law, the process for disbanding an HOA would be rigorous but clearly defined. It begins with a petition supported by at least 50% of the homeowners. To finalize the dissolution, a formal termination plan requires the approval of two-thirds of the community members and subsequent judicial sign-off. This structural shift is intended to give residents a "nuclear option" against corrupt boards, particularly in the wake of high-profile criminal cases like the multimillion-dollar fraud scheme at The Hammocks in West Kendall.

Infrastructure and Legal Obstacles Despite the bill's popularity in the House, legal experts have raised alarms regarding the fate of communal infrastructure. Most HOAs own and maintain their own roads, stormwater systems, and utilities. If an association dissolves, ownership would theoretically pass to a termination trustee, but critics argue this does not solve the long-term problem of who pays for maintenance. Many local municipalities require the existence of an HOA specifically so that the tax burden for gated-community infrastructure does not fall on the general public, creating a potential legal and financial impasse for cities.

Creation of Specialized Community Courts Beyond dissolution, HB 657 seeks to streamline the legal battles often associated with property disputes by establishing "Community Association Courts." These specialized courts would be located in Miami, Fort Lauderdale, and Tampa, dedicated specifically to hearing HOA and COA cases. The bill removes the current requirement for homeowners to enter mediation before filing a lawsuit, a move intended to clear massive caseloads and provide residents with faster access to judicial...