Florida HB 657: What HOA Dissolution Could Change

Florida House Bill 657 (HB 657) proposes a major change to HOA and community-association disputes.

The headline issue is not automatic elimination of all HOAs. Instead, the bill creates a process where residents in qualifying communities could vote to terminate an HOA declaration under specific thresholds and procedures.

Quick answer: does HB 657 abolish HOAs in Florida?

No. HB 657 would not dissolve all Florida HOAs by default.

If enacted, it would create a legal pathway for termination in specified situations, but only after petition and voting requirements are met.

Key changes proposed in HB 657

According to the reported bill summary, HB 657 includes multiple reforms affecting HOA and COA disputes:

1. Removes certain presuit mediation requirements for COA disputes.
2. Creates a Community Association Court Program in circuit courts.
3. Requires newly created COAs (on or after July 1, 2026) to include a statutory statement in governing documents.
4. Requires older COAs (before July 1, 2026) to hold a meeting on whether to adopt that statement.
5. Establishes a structured process to terminate HOA covenants in covered cases.

How the proposed HOA dissolution process works

If enacted, the process is reported to follow these core steps:

| Step | Threshold or deadline | What it means | | --- | --- | --- | | Petition submitted | At least 50% of voting members sign | Homeowners trigger a formal termination request to the board. | | Board meeting required | Within 60 days of receiving petition | Board must hold a meeting to consider the termination plan. | | Approval vote | Two-thirds of total voting interests | Termination plan must reach supermajority support. | | If vote fails | 18-month waiting period | Residents cannot refile immediately; they must wait before trying again. |

What happens if termination is approved

Under the reported framework, the board must wind down association affairs, including:

• Hiring professionals needed to liquidate or conclude association operations.
• Settling debts, claims, receivables, contracts, and litigation.
• Maintaining, repairing, or demolishing unsafe association property when required by code.
• Disposing of assets in the association's best interest.
• Collecting rents, fees, assessments, and insurance proceeds still owed.
• Distributing remaining assets to members equally or under the approved termination plan.

In practice, this can be a complex legal and accounting process even after members approve termination.

Proposed penalties for board misconduct during termination campaigns

HB 657 reportedly adds enforcement tools against officers or directors who:

• Use HOA funds to campaign for or against a termination plan.
• Fail to hold the required meeting after receiving a valid petition.
• Conceal financial records relevant to the termination process.

Reported penalties include fines up to $5,000 per violation and removal from office.

Legislative status and timeline (as reported)

As reported, HB 657 cleared its final House committee and was set for consideration by the full Florida House.

If passed by the House, it would still need Senate approval and the Governor's signature before becoming law. Reported effective date language points to July 1 if enacted.

Because bill text and amendments can change quickly, always verify the latest official version and status before relying on a summary.

Homeowner checklist if your community is discussing termination

1. Request the latest bill text and compare it to any social-media summary.
2. Confirm your association's total voting interests and exact supermajority threshold.
3. Ask for written procedures on petition validation and signature counting.
4. Request a full financial package before voting: reserves, debts, pending claims, contracts, and insurance issues.
5. Get the proposed termination plan in writing before any vote.
6. Preserve all notices, meeting minutes, and ballots in one timeline.

Related Florida HOA guides

• HOA laws in Florida: Chapter 720 rights every homeowner should know
• HOA fine laws by state: fine caps, cure periods, hearing rules, and records deadlines
• Can an HOA foreclose on your home
• HOA board powers and limits

FAQ

Does HB 657 automatically terminate my HOA?

No. Reported bill language describes a petition-and-vote process, not automatic statewide dissolution.

What vote is needed to terminate under the reported process?

The reported threshold is two-thirds of total voting interests after a petition signed by at least half of voting members.

Can board members use HOA money to campaign on termination?

The reported bill text includes penalties for using HOA funds to campaign for or against termination plans.

Is HB 657 law right now?

Not unless it passes both chambers and is signed by the Governor. Always verify current bill status.

Bottom line

Florida HB 657 is a high-impact proposal because it combines court-process reform with a potential HOA dissolution pathway.

For homeowners, the practical issue is process quality: petition validity, vote thresholds, financial disclosure, and documented compliance at each step.

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Disclaimer: This article is for general educational purposes and is not legal advice. Bill text, amendments, and legislative status can change. Verify current Florida law and consult a qualified Florida attorney for legal decisions.