We're about halfway through the 2025 Legislative Session in Florida and, like most years, there are several bills that could change how community associations, like Homeowners and Condominium Associations, can operate.
This industry is one of the most highly regulated of any industry in Florida, mainly because of the continual conflict between associations and home and condo owners. The legislature is responsible for setting the table for any issues that might arise.
Last year, the number of changes that happened for Homeowners Associations in Florida was substantial and many of those changes are still being implemented.
This year, the changes to association management do not look to be as significant, although there are some bills we are looking at that cover the milestone inspection and reserve requirements, the ability for virtual meetings, investment policies and, perhaps, an Homeowners' Association Ombudsman for the entire state.
Nothing is final until Governor Ron DeSantis signs the bills into law during the summer, but similarly, nothing is entirely off the table until May, when the legislative session ends. Also, just because something is in – or not in – a bill does not mean it will be the same version when it passes.
If you want to know the details, here is a great graphic on how a bill becomes a law that is much more complicated than Schoolhouse Rock.
The attorneys at The Orlando Law Group can help associations with any changes that might come, ensuring your association remains in compliance with any new state statutes that might be enacted this year.
CS/SB 1742: Condominium and Cooperative Associations
The main bill to watch will be CS/SB 1742.Any bill in Tallahassee with a "CS" in front of it should be taken seriously and this bill is no different.
It is a comprehensive bill covering issues facing condominium associations and has the highest likelihood of passing as it is being sponsored by the entire Regulated Industries Committee and its chair, Senator Jennifer Bradley. Plus, it has already passed its first committee in the Senate unanimously.
Here are a few things that would change if its most recent version passes:
- Requirements for association managers in licensing, including a 10-year ban from the industry if a license is revoked for any reason.
- Requirements to include the following in every contract between a manager and an association: The community association manager shall abide by all professional standards and record keeping requirements imposed pursuant to part VIII of chapter 468, Florida Statutes.
- Requirements to have all public documents online within 30 days of them being finalized and to include the minutes from all board meetings of the last 12 months.
- Approval of having a board meeting by videoconference or in person. However, no board member can attend an association meeting more than twice in a calendar year.
- Requirements that those meetings must be recorded and retained as official records of the association.
- Requirements to receive consent before communicating with unit and homeowners via electronic methods.
- Requirements for an alternate budget to be considered if a proposed budget's assessments grow by 115 percent or more from year to year.
- Requirements to create an online account with the state for each association, along with very specific requirements for that account.
- Requirements for firms performing structural integrity studies to disclose prior to starting work that they intend to bid on the work suggested in the study.
New investment policies may be coming
If this bill passes, there could be significant new processes for managing association funds.
The good news is that an association is permitted, without a vote of the board, to put association funds in "certificates of deposit or in depository accounts at a community bank, savings bank, commercial bank, savings and loan association, or credit union."
If you want to do something different for investing your reserve funds, there may be new steps for you to take. They include:
- Requiring a majority vote of all "voting interests" to allow other investments.
- Creating an investment committee of at least two board members and two community members.
- Adopting rules for investing funds with very specific caveats.
- Requiring the committee must suggest investment advisors – with no connection to the board, the association or the management company – to the board to choose the advisor.
- Investments cannot be in any funds or stocks of which the state is prohibited from investing.
- Rules for the investment advisor, including reporting requirements and the ability to withdraw funds within 15 days.
One new aspect of investing and managing association funds is allowing a line of credit for structure reserves. These reserves were causing significant issues with associations because of the significant cost of repairs.
If this law passes, associations will be able to secure a line of credit for these expenses instead of pushing special assessments for a reserve fund.
We'll share other bills as we continue through the rest of the 2025 Legislative Session.
The attorneys at The Orlando Law Group can help your association prepare for any new law that is passed the legislative session as we represent more than 100 communities in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.
If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
