HB 657 — Community Associations

The association must obtain the affirmative approval of two-thirdsa majority of the unitsvoting interests at a meeting of the membership at which a quorum has been attained in order to amend the governing documents under this paragraph.

Page718.1255 7Alternative ofdispute 44resolution; CODING:

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hb657-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 657 2026 718.1255 Alternative dispute resolution;

applicability.— (4) NONBINDING ARBITRATION AND MEDIATION OF DISPUTES.—The Division of Florida Condominiums, Timeshares, and Mobile Homes of the Department of Business and Professional Regulation may employPage full-time7 attorneysof to38 actCODING: as arbitrators to conduct the arbitration hearings provided by this chapter.

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hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 657 2026 employ full-time attorneys to act as arbitrators to conduct the arbitration hearings provided by this chapter.

The department may not enter into a legal services contract for an arbitration Pagehearing 8under this chapter with an attorney who is not a certified arbitrator unless a certified arbitrator is not available within 50 miles of 44the CODING:dispute.

The department shall adopt rules of procedure to govern such arbitration hearings including mediation incident thereto.

The decision of an Page 8 of 38 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 hearing under this chapter with an attorney who is not a certified arbitrator unless a certified arbitrator is notfinal; available within 50 miles of the dispute.

The department shall adopt rules of procedure to govern such arbitration hearings including mediation incident thereto.

The decision of an arbitrator is final;

Persons who are not parties to the Pagedispute 9are not allowed to attend the mediation conference without the consent of 44all CODING:parties, with the exception of counsel for the parties and corporate representatives designated to appear for a party.

If the mediator declares an impasse after a mediation conference has been held, the arbitration proceeding Page 9 of 38 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 disputeterminates, areunless notall allowedparties toagree attendin thewriting mediationto conferencecontinue without the consentarbitration ofproceeding, allin parties,which withcase the exceptionarbitrator's ofdecision counselshall forbe thebinding partiesor andnonbinding, corporateas representativesagreed designatedupon toby appearthe forparties; a party.

If the mediator declares an impasse after a mediation conference has been held, the arbitration proceeding terminates, unless all parties agree in writing to continue the arbitration proceeding, in which case the arbitrator's decision shall be binding or nonbinding, as agreed upon by the parties;

An arbitration decision is also final if a complaint for a trial de novo is not filed in a Pagecommunity 10association ofcourt 44program CODING:under s.

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words underlined are additions.

hb657-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 657 2026 community association court program under s.

The prevailing party inPage an10 arbitration proceeding shall be awarded the costs of the38 arbitrationCODING: and reasonable attorney fees in an amount determined by the arbitrator.

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words underlined are additions.

hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 657 2026 in an arbitration proceeding shall be awarded the costs of the arbitration and reasonable attorney fees in an amount determined by the arbitrator.

A mediation Pagesettlement 11may also be enforced through the county or circuit court or a community association court program, as applicable, and any costs and fees incurred in the enforcement of 44a CODING:settlement agreement reached at mediation must be awarded to the prevailing party in any enforcement action.

Page 11 of 38 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 settlement(5) mayPRESUIT alsoMEDIATION.—In belieu enforcedof through the countyinitiation orof circuitnonbinding courtarbitration or a community association court program, as applicable,provided and any costs and fees incurred in thesubsections enforcement(1)-(4), of a settlementparty agreementmay reachedsubmit ata mediationdispute must be awarded to thepresuit prevailingmediation party in anyaccordance enforcementwith action.s.

(5) PRESUIT MEDIATION.—In lieu of the initiation of nonbinding arbitration as provided in subsections (1)-(4), a party may submit a dispute to presuit mediation in accordance with s.

Subsections (8) through (13) of section 720.301, Florida Statutes, are renumbered as subsections (9) through (14), respectively, and a new subsection (8) is added to that section, to read:

720.301 Definitions.—As used in this chapter, the term:

(8) "Financial statements" means a comprehensive report prepared in accordance with generally accepted accounting principles which accurately reflects the financial condition and operation of a homeowners' association for a specified reporting period.

This report must include, at a minimum, a balance sheet;

an income and expense statement;

a budget comparison;

and a complete set of bank statements, including copies of check images for all disbursements the association made during the reporting period, for each bank account belonging to the Page 12 of 44 CODING:

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hb657-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 657 2026 association.

Section 5.

720.301-720.407 are not intended to impair such contract rights, including, but not limitedPage to,12 the rights of the38 developerCODING: to complete the community as initially contemplated.

Section 6.

Subsections (11) through (15) of section 720.303, Florida Statutes, are renumbered as subsections (12) through (16), respectively, subsection (1) is amended, and a new Page 13 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 subsectionlimited (11)to, isthe addedrights toof thatthe section,developer to read:complete the community as initially contemplated.

Section 5.

Subsections (11) through (15) of section 720.303, Florida Statutes, are renumbered as subsections (12) through (16), respectively, subsection (1) is amended, and a new subsection (11) is added to that section, to read:

Each association formed on or after July 1, 2026, must includePage the13 followingof statement38 inCODING: the governing documents:

This association and the association's governing documents are governed by the Florida Homeowners' Association Act, as amended from time to time.

Page 14 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 2.include the following statement in the governing documents:

This association and the association's governing documents are governed by the Florida Homeowners' Association Act, as amended from time to time.

2.

The association must obtain the affirmative approval of two-thirdsa majority of the voting interests of the association at a meeting of the membership at which a quorum has been attained in order to amend the governing documents under this subparagraph.

and protest of ad valoremPage taxes14 onof commonly38 usedCODING: facilities.

The association may defend actions in eminent domain or bring inverse condemnation actions.

Before commencing litigation against any party in the name of the association involving amounts in controversy in Page 15 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 excessvalorem oftaxes $100,000,on thecommonly associationused mustfacilities. obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained.

The association may defend actions in eminent domain or bring inverse condemnation actions.

Before commencing litigation against any party in the name of the association involving amounts in controversy in excess of $100,000, the association must obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained.

(b) A conflict of interest exists when a director, an officer, or a committee member has a direct or an indirect financial interest in a transaction, contract, or decision under considerationPage by15 theof association.38 CODING:

(c) The director, officer, or committee member with a conflict of interest must disclose the nature and extent of the conflict in writing to the board before any discussion or vote Page 16 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 occursconsideration onby the matter.association.

(c) The director, officer, or committee member with a conflict of interest must disclose the nature and extent of the conflict in writing to the board before any discussion or vote occurs on the matter.

Section 7.6.

Except as otherwise provided in this paragraph, any governing document, or amendment to a governing document, that is enacted after July 1, 2021, and that prohibits or regulates rental agreements applies only to a parcel owner who acquires title to the parcel after the effective date of the governing Page 1716 of 4438 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 governing document, or amendment to a governing document, that is enacted after July 1, 2021, and that prohibits or regulates rental agreements applies only to a parcel owner who acquires title to the parcel after the effective date of the governing document or amendment, or to a parcel owner who consents, individually or through a representative, to the governing document or amendment.

For a conveyance to be recognized as one made to an affiliated entity, the entity must furnish to the association a document certifying that this subparagraph applies and provide any organizational documents for the parcel owner and the affiliated entity which Page 1817 of 4438 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 conveyance to be recognized as one made to an affiliated entity, the entity must furnish to the association a document certifying that this subparagraph applies and provide any organizational documents for the parcel owner and the affiliated entity which support the representations in the certificate, as requested by the association.

Section 8.7.

In addition, the departmentPage shall18 conduct binding arbitration of election38 disputesCODING: between a member and an association in accordance with s.

718.1255 and rules adopted by the division.

Election disputes and recall disputes are not eligible for presuit mediation;

Page 19 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 thesedepartment disputesshall mustconduct bebinding arbitratedarbitration byof theelection departmentdisputes orbetween fileda inmember aand courtan ofassociation competentin jurisdiction.accordance with s.

718.1255 and rules adopted by the division.

Election disputes and recall disputes are not eligible for presuit mediation;

these disputes must be arbitrated by the department or filed in a court of competent jurisdiction.

(2)(a) Disputes between an association and a parcel owner regarding use of or changes to the parcel or the common areas and other covenant enforcement disputes, disputes regarding amendments to the association documents, disputes regarding meetings of the board and committees appointed by the board, membership meetings not including election meetings, and access to the official records of the association shall be the subject ofPage a19 demandof for38 presuitCODING: mediation served by an aggrieved party before the dispute is filed in court.

Presuit mediation proceedings must be conducted in accordance with the applicable Florida Rules of Civil Procedure, and these proceedings are Page 20 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 privilegedof anda confidentialdemand tofor presuit mediation served by an aggrieved party before the samedispute extentis asfiled court-orderedin mediation.court.

Presuit mediation proceedings must be conducted in accordance with the applicable Florida Rules of Civil Procedure, and these proceedings are privileged and confidential to the same extent as court-ordered mediation.

When mediation is attendedPage by20 a quorum of the38 board,CODING: such mediation is not a board meeting for purposes of notice and participation set forth in s.

720.303.

An aggrieved party shall serve on the responding party a written demand to participate in presuit mediation in Page 21 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 substantiallyattended by a quorum of the followingboard, form:such mediation is not a board meeting for purposes of notice and participation set forth in s.

720.303.

An aggrieved party shall serve on the responding party a written demand to participate in presuit mediation in substantially the following form:

If you fail to participate in thePage mediation21 process,of suit38 mayCODING: be brought against you without further warning.

The process of mediation involves a supervised negotiation process in which a trained, neutral third- Page 22 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 partythe mediatormediation meetsprocess, withsuit bothmay partiesbe andbrought assistsagainst themyou inwithout exploringfurther possiblewarning. opportunities for resolving part or all of the dispute.

The process of mediation involves a supervised negotiation process in which a trained, neutral third- party mediator meets with both parties and assists them in exploring possible opportunities for resolving part or all of the dispute.

If you have failed or refused to participate in the entire mediation process, you will notPage be22 entitledof to38 recoverCODING: attorney's fees, even if you prevail.

The aggrieved party has selected and hereby lists five certified mediators who we believe to be neutral and Page 23 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 qualifiednot be entitled to mediaterecover theattorney's dispute.fees, even if you prevail.

The aggrieved party has selected and hereby lists five certified mediators who we believe to be neutral and qualified to mediate the dispute.

Unless otherwise agreed by the parties, section 720.311(2)(b), Florida Statutes, requires that the parties share the costs of presuit mediation equally, includingPage the23 feeof charged38 byCODING: the mediator.

An average mediation may require three to four hours of the mediator's time, including some preparation time, and the parties would need to share equally the mediator's Page 24 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 feesincluding asthe wellfee ascharged theirby own attorney's fees if they choose to employ an attorney in connection with the mediation.mediator.

An average mediation may require three to four hours of the mediator's time, including some preparation time, and the parties would need to share equally the mediator's fees as well as their own attorney's fees if they choose to employ an attorney in connection with the mediation.

In the event that you fail to respond within 20 days from the date of this letter, or if you fail to agree to at least one of the mediators that we have suggested or to pay or prepay to the mediator one-half of the costs involved, the aggrieved party Page 2524 of 4438 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 within 20 days from the date of this letter, or if you fail to agree to at least one of the mediators that we have suggested or to pay or prepay to the mediator one-half of the costs involved, the aggrieved party will be authorized to proceed with the filing of a lawsuit against you without further notice and may seek an award of attorney's fees or costs incurred in attempting to obtain mediation.

(List acceptable mediator or mediators.) I/we further agree to pay or prepay one-half of the mediator's fees and to forward such advance deposits asPage the25 mediatorof may38 requireCODING: for this purpose.

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Signature of responding party #1 ........................

Page 26 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 Telephoneas contactthe informationmediator ........................may require for this purpose.

........................

Signature of responding party #1 ........................

Telephone contact information ........................

The parties shall share the costs of presuit mediation equally, including the fee charged by the mediator, if any, unless the partiesPage agree26 otherwise, and the mediator may require advance payment of its38 reasonableCODING: fees and costs.

The failure of any party to respond to a demand or response, to agree upon a mediator, to make payment of fees and costs within the time Page 27 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 establishedparties byagree theotherwise, mediator, or to appear for a scheduled mediation session without the approval of the mediator, shall constitute the failure or refusal to participate in the mediation process and shall operate as an impasse in the presuitmediator mediationmay byrequire suchadvance party,payment entitling the other party to proceed in court and to seek an award of theits costsreasonable and fees associatedand withcosts. the mediation.

The failure of any party to respond to a demand or response, to agree upon a mediator, to make payment of fees and costs within the time established by the mediator, or to appear for a scheduled mediation session without the approval of the mediator, shall constitute the failure or refusal to participate in the mediation process and shall operate as an impasse in the presuit mediation by such party, entitling the other party to proceed in court and to seek an award of the costs and fees associated with the mediation.

718.1255 and rules adopted by the division, with the arbitrationPage proceeding27 toof be38 conductedCODING: by a department arbitrator or by a private arbitrator certified by the department.

If all parties do not agree to arbitration proceedings following an unsuccessful presuit mediation, any Page 28 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 partyarbitration mayproceeding fileto thebe disputeconducted inby court.a department arbitrator or by a private arbitrator certified by the department.

If all parties do not agree to arbitration proceedings following an unsuccessful presuit mediation, any party may file the dispute in court.

(e) The presuit mediation procedures provided by this subsection may be used by a Florida corporation responsible for the operation of a community in which the voting members are parcel owners or their representatives, in which membership in Page 2928 of 4438 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 (e) The presuit mediation procedures provided by this subsection may be used by a Florida corporation responsible for the operation of a community in which the voting members are parcel owners or their representatives, in which membership in the corporation is not a mandatory condition of parcel ownership, or which is not authorized to impose an assessment that may become a lien on the parcel.

Section 9.8.

(d)Page It29 is in the best interest of this38 stateCODING: to provide for termination of the declaration of covenants in certain circumstances in order to:

1.

Prevent covenants from impairing the continued Page 30 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 productive(d) useIt is in the best interest of this state to provide for termination of the property.declaration of covenants in certain circumstances in order to:

1.

Prevent covenants from impairing the continued productive use of the property.

(b) If the members reject a plan of termination, a subsequentPage plan30 of termination38 underCODING: this section may not be considered for at least 18 months after the date of the rejection.

(c) A plan of termination must be approved by at least Page 31 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 two-thirdssubsequent plan of thetermination totalunder votingthis interestssection may not be considered for at least 18 months after the date of the association.rejection.

(c) A plan of termination must be approved by at least two-thirds of the total voting interests of the association.

(5)(a) A parcel owner who wishes to terminate a homeowners' association in which he or she is a member must provide to the board of administration a petition for a plan of termination that is signed by at least 5020 percent of the voting members of the association.

A voting interest of the association may not be suspended for any reason for purposes of signing the petition or determining whether the 5020 percent threshold for such petition has been met under this paragraph.

3.Page 31 of 38 CODING:

The manner in which voting will take place.

(c) If the board fails to call a meeting within the 60-day time period, any member may petition a community association court program under s.

720.32 or, if a community association Page 32 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 court3. program does not exist in the judicial circuit in which the association is located, another court of competent jurisdiction for an order compelling compliance with this section.

The manner in which voting will take place.

(c) If the board fails to call a meeting within the 60-day time period, any member may petition a community association court program under s.

720.32 or, if a community association court program does not exist in the judicial circuit in which the association is located, another court of competent jurisdiction for an order compelling compliance with this section.

(7)(a) A plan of termination and the consents or joinders of parcel owners must be recorded in the public records of each countyPage in32 which any portion of the38 associationCODING: is located.

The plan is effective only upon recordation or at a later date specified in the plan.

(b) Upon recordation or at a later date specified in the Page 33 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 plancounty ofin termination,which titleany toportion of the association propertyis vestslocated. in a termination trustee.

The plan is effective only upon recordation or at a later date specified in the plan.

(b) Upon recordation or at a later date specified in the plan of termination, title to the association property vests in a termination trustee.

(b) Order the Department of State to dissolve the homeowners'Page association.33 of 38 CODING:

(c) Appoint a termination trustee to manage the distribution of assets and resolution of liabilities.

(9) The approval of the plan of termination does not Page 34 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 terminatehomeowners' theassociation. board of administration, which shall continue in existence following approval of the plan of termination with all powers and duties such board had before approval of the plan.

(c) Appoint a termination trustee to manage the distribution of assets and resolution of liabilities.

(9) The approval of the plan of termination does not terminate the board of administration, which shall continue in existence following approval of the plan of termination with all powers and duties such board had before approval of the plan.

(g) Sell at public or private sale or exchange, convey, or otherwise dispose of assets of the association for an amount deemed to be in the best interests of the association, and executePage bills34 of sale38 andCODING: deeds of conveyance in the name of the association.

(h) Collect and receive rents, profits, accounts receivable, income, maintenance fees, special assessments, or Page 35 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 insuranceexecute proceedsbills forof sale and deeds of conveyance in the name of the association.

(h) Collect and receive rents, profits, accounts receivable, income, maintenance fees, special assessments, or insurance proceeds for the association.

1.Page 35 of 38 CODING:

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words underlined are additions.

hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 657 2026 1.

PageSection 369. of 44 CODING:

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words underlined are additions.

hb657-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 657 2026 Section 10.

(a)Page Chapter36 718,of the38 CondominiumCODING: Act.

(b) Chapter 719, the Cooperative Act.

(c) Chapter 720, the Homeowners' Association Act.

(4) The community association court program may do all of Page 37 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 (a) Chapter 718, the following:Condominium Act.

(b) Chapter 719, the Cooperative Act.

(c) Chapter 720, the Homeowners' Association Act.

(4) The community association court program may do all of the following:

(5) By January 1 of each year, the chief judge in each judicial circuit in which a community association court program is created shall submit to the President of the Senate and the Speaker of the House of Representatives a report that summarizes the caseload of each community association court program and the outcomesPage 37 of such38 caseload.CODING:

(6) The Office of the State Courts Administrator shall establish procedure, staffing, and reporting requirements for the operation of the community association court program.

Page 38 of 44 CODING:

hb657-02-c2hb657-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 657 2026 (7)outcomes The costs associated with the creation, operation, and compliance and enforcement duties of thesuch communitycaseload. association court program shall be funded through a general revenue appropriation to the department.

Section(6) 11.The Office of the State Courts Administrator shall establish procedure, staffing, and reporting requirements for the operation of the community association court program.

(7) The costs associated with the creation, operation, and compliance and enforcement duties of the community association court program shall be funded through a general revenue appropriation to the department.

Section 10.

Section 12.11.

Paragraph (a) of subsection (1) of section 336.125, Florida Statutes, is amended to read:

336.125 Closing and abandonment of roads;

optional conveyance to homeowners' association;

traffic control jurisdiction.— (1)(a) In addition to the authority provided in s.

336.12, the governing body of the county may abandon the roads and rights-of-way dedicated in a recorded residential subdivision plat and simultaneously convey the county's interest in such roads, rights-of-way, and appurtenant drainage facilities to a homeowners' association for the subdivision, if the following conditions have been met:

1.

The homeowners' association has requested the abandonment and conveyance in writing for the purpose of Page 39 of 44 CODING:

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words underlined are additions.

hb657-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 657 2026 converting the subdivision to a gated neighborhood with restricted public access.

2.

No fewer than four-fifths of the owners of record of property located in the subdivision have consented in writing to the abandonment and simultaneous conveyance to the homeowners' association.

3.

The homeowners' association is both a corporation not for profit organized and in good standing under chapter 617, and a "homeowners' association" as defined in s.

720.301 s.

720.301(9) with the power to levy and collect assessments for routine and periodic major maintenance and operation of street lighting, drainage, sidewalks, and pavement in the subdivision.

4.

The homeowners' association has entered into and executed such agreements, covenants, warranties, and other instruments;

has provided, or has provided assurance of, such funds, reserve funds, and funding sources;

and has satisfied such other requirements and conditions as may be established or imposed by the county with respect to the ongoing operation, maintenance, and repair and the periodic reconstruction or replacement of the roads, drainage, street lighting, and sidewalks in the subdivision after the abandonment by the county.

Section 13.

Subsection (2) of section 558.002, Florida Statutes, is amended to read:

558.002 Definitions.—As used in this chapter, the term:

Page 40 of 44 CODING:

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words underlined are additions.

hb657-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 657 2026 (2) "Association" has the same meaning as in s.

718.103, s.

719.103(2), s.

720.301(10) s.

720.301(9), or s.

723.075.

Section 14.

Subsection (6) of section 617.0601, Florida Statutes, is amended to read:

617.0601 Members, generally.— (6) Subsections (1), (2), (3), and (4) do not apply to a corporation that is an association as defined in s.

720.301(10) s.

720.301.

Section 15.

Subsection (6) of section 617.0701, Florida Statutes, is amended to read:

617.0701 Meetings of members, generally;

failure to hold annual meeting;

special meeting;

consent to corporate actions without meetings;

waiver of notice of meetings.— (6) Subsections (1) and (3) do not apply to any corporation that is an association as defined in s.

720.301(10) s.

720.301;

a corporation regulated by chapter 718, chapter 719, chapter 720, chapter 721, or chapter 723;

or a corporation where membership in such corporation is required pursuant to a document recorded in the county property records.

Section 16.

Subsection (7) of section 617.0721, Florida Statutes, is amended to read:

617.0721 Voting by members.— (7) Subsections (1), (5), and (6) do not apply to a corporation that is an association, as defined in s.

720.301(10) s.

720.301, or a corporation regulated by chapter 718 or chapter Page 41 of 44 CODING:

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Section 17.

Section 617.0725, Florida Statutes, is amended to read:

617.0725 Quorum.—An amendment to the articles of incorporation or the bylaws which adds, changes, or deletes a greater or lesser quorum or voting requirement must meet the same quorum or voting requirement and be adopted by the same vote and voting groups required to take action under the quorum and voting requirements then in effect or proposed to be adopted, whichever is greater.

This section does not apply to any corporation that is an association, as defined in s.

720.301(10) s.

720.301(9), or any corporation regulated under chapter 718 or chapter 719.

Section 18.

Subsection (3) of section 617.0808, Florida Statutes, is amended to read:

617.0808 Removal of directors.— (3) This section does not apply to any corporation that is an association, as defined in s.

720.301(10) s.

720.301, or a corporation regulated under chapter 718 or chapter 719.

Section 19.

Section 617.1606, Florida Statutes, is amended to read:

617.1606 Access to records.—Sections 617.1601-617.1605 do not apply to a corporation that is an association, as defined in s.

720.301(10) s.

720.301, or a corporation regulated under chapter 718 or chapter 719.

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hb657-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 657 2026 Section 20.

Paragraph (b) of subsection (1) of section 718.116, Florida Statutes, is amended to read:

718.116 Assessments;

liability;

lien and priority;

interest;

collection.— (1) (b)1.

The liability of a first mortgagee or its successor or assignees who acquire title to a unit by foreclosure or by deed in lieu of foreclosure for the unpaid assessments that became due before the mortgagee's acquisition of title is limited to the lesser of:

a.

The unit's unpaid common expenses and regular periodic assessments which accrued or came due during the 12 months immediately preceding the acquisition of title and for which payment in full has not been received by the association;

or b.

One percent of the original mortgage debt.

The provisions of this paragraph apply only if the first mortgagee joined the association as a defendant in the foreclosure action.

Joinder of the association is not required if, on the date the complaint is filed, the association was dissolved or did not maintain an office or agent for service of process at a location which was known to or reasonably discoverable by the mortgagee.

2.

An association, or its successor or assignee, that acquires title to a unit through the foreclosure of its lien for assessments is not liable for any unpaid assessments, late fees, interest, or reasonable attorney's fees and costs that came due Page 43 of 44 CODING:

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hb657-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 657 2026 before the association's acquisition of title in favor of any other association, as defined in s.

718.103 or s.

720.301(10) s.

720.301(9), which holds a superior lien interest on the unit.

This subparagraph is intended to clarify existing law.

Section 21.

Paragraph (d) of subsection (2) of section 720.3085, Florida Statutes, is amended to read:

720.3085 Payment for assessments;

lien claims.— (2) (d) An association, or its successor or assignee, that acquires title to a parcel through the foreclosure of its lien for assessments is not liable for any unpaid assessments, late fees, interest, or reasonable attorney's fees and costs that came due before the association's acquisition of title in favor of any other association, as defined in s.

718.103 or s.

720.301(10) s.

720.301(9), which holds a superior lien interest on the parcel.

This paragraph is intended to clarify existing law.

Section 22.

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