Client Alert: Governor DeSantis Signs HB 1203 Affecting Homeowners Associations and Licensed Community Association Managers

Governor DeSantis signed House Bill 1203 (2024), which is effective July 1, 2024 and makes a number of substantial changes to statutes governing Florida community association managers and homeowners associations (HOAs). The changes include the following:

  1. Amends Section 720.303 relating to director and officer liability and record keeping, as follows:
    1. Clarifies the role of officers and directors to Section 617.0830, Florida Statutes, which provides as follows:
      1. A director shall discharge duties in good faith with care of ordinary prudent person or manager reasonably believed to be in best interest of the association.
      2. In discharging duties, director may rely on information or opinions from employees who are believed to be reliable and competent, counsel, accountant, or other professionals and committees if confidence is merited.
      3. Director is not liable for any action taken as a director or failure to take action if he or she performed the duty in compliance with this section.
      4. Requires Associations to keep records longer than seven years if the governing documents require longer retention.
      5. Requires Associations with 100 parcels or more to post certain official records on a website created for the association or otherwise make the documents available through a mobile application by January 1, 2025, redacted as necessary. The website must contain a subpage or portal that is password protected and inaccessible to the general public. The required records are:
      6. Declaration of covenants and amendments;
      7. Articles of Incorporation & amendments;
      8. Bylaws and amendments;
      9. Current rules;
      10. Contracts and bids;
      11. Annual budget;
      12. Financial reports;
      13. Insurance policies;
      14. Director certifications;
      15. All contracts, notices, minutes, and other documents related thereto constituting a conflict of interest (i.e., contracts with directors, their family, or entities in which they have an interest);
      16. Member Meeting notices, agenda, and any documents to be considered linked conspicuously on the homepage;
      17. Board meeting notices and enclosures.
    2. Requires the Association to adopt written rules governing method and time period for retaining official records and post the rules/policy on its website.

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