The 2025 HOA Law Changes in a Nutshell
As part of the ongoing effort to modernize the legal framework governing homeowners’ associations in Florida, the new law enacted in 2025 brought significant changes to the structure of these communities. These changes aim to enhance the functionality and sustainability of associations while addressing long-standing compliance and enforcement issues.
Perhaps the most significant change is the introduction of mandatory certification and licensing for community association management companies that handle financial operations for 25 or more units. By establishing oversight over the financial processes, regulators intend to curb the fraudulent activities that have plagued the industry, thereby safeguarding the investment property owners have made in their homes.
While much of the existing law remains consistent with the overall maintenance of homeowner associations , the 2025 revision does express an intention to simplify compliance with statutory requirements as well as make the laws more accessible to individuals who may represent themselves in judicial enforcement proceedings. This aspect of the changes appears to provide substantive and procedural rights to individuals attempting to regulate common interests relating to their associations.
Another stated intent of the law is to further strengthen the criminal penalties for actions that cause financial distress to associations. In one of the largest criminal fraud cases to date within the state attorney general’s office, the former manager of Fiddler’s Creek Community Association was charged and now charges have been brought against the manager of the HOA’s community development district, which had collected a $1.8 Million annual assessment from owners for the district’s drainage system.
The 2025 legislative session also provides for reciprocity between licensed community association managers in neighboring states. Florida began requiring licensing of community association managers in 2008. While other states in the Southeastern region of the U.S. may not have a licensing requirement, they also play catchup to the rapid growth and expansion of populations opening the door in need for regulation.
Board Member Qualifications and Duties
The new statutes are clear that board members must be eligible to serve on their communities’ board of directors. This means that directors must not have been convicted of a felony and also not have been found to be delinquent in the payment of assessments as long as such delinquency is not in a payment plan and as long as the delinquency exceeds 90 days. Any person meeting the eligibility requirements can run for and serve as a director. In addition, "a homeowner association may decide by a majority approval at a duly noticed meeting of its voting interests that a director has served his or her entire term and is not eligible for reelection to the board." The new laws also define what courses a director must take to be qualified to serve on their boards, and a failure to complete these courses creates grounds for removal from office. Directors will be required to complete an initial training course within one year of being elected and a re-certification course every three years thereafter. The DBPR will be setting up approved online training courses for directors to take (creating yet another bookkeeping requirement for the DBPR). Further, any time a director or a manager is impeached by the DBPR, all of his or her affiliates are basically banned from selling their homes until the matter is resolved, meaning that the owners or managers cannot place their homes on the market if they are charged with management misconduct. Directors will also have fiduciary duties in upholding the financial integrity of their communities and maintaining the homeowners’ best interests in their minds.
Homeowner Rights and Safeguards
New Florida HOA Laws of 2025 also expand the rights and protections of homeowners. With more protections, homeowners can be assured that they have more control over their homes and communities. The new laws require that a condo association provide homeowners with the written budget at least thirty days before it is voted on. Previously, the budget was provided to homeowners after the budget was adopted. There are similar provisions for homeowners in an HOA. The law requires that a homeowners association provide a member of the association with a written notice of any increase in assessments at least thirty days before the increase takes affect. Previously, the notification was required within thirty to ninety days after the effective date or due date of an increase.
Florida Statute §718.111(12) has been amended to require condominium associations to adopt a reasonable riding policy for electronic submittal of pro forma invoices. Similarly, the statute now requires that HOA boards consider all bids submitted and must keep them for at least couple of months after the bids are opened.
Florida Statute §720.303(2)(c) was amended to show the restrictions and requirements for a developer-controlled association with restrictions on an association with its transition of control from a developer to the members of the association.
Many of the new homeowner rights and protection provisions deal with member initiation and participation in the business of the association. Statutes §§ 718.112(2)(d) and 720.303(4) amended the law to require boards to hold meetings for committees that exercise powers delegated to them by the board. Homeowners must be given the opportunity to attend these committee meetings as well.
New provisions require that the minutes of board members and committee members be "open to inspection by unit owners and parcel owners." It also obligates HOA and condominium documents to provide members a means of communication with board members and to pay owners’ costs for the furnished means of communication under certain conditions.
Financial Transparency and Accountability
In the 2025 HOA Law Update, the Florida state legislature has introduced several novel financial management and reporting requirements that affect the day-to-day operations of every homeowners’ association. These provisions, detailed in § 720.3033, are aimed at bolstering the financial position of homeowners’ associations through a new line of checks and balances.
First, HOAs must always have unrestricted funds on hand or on deposit at all times. A failure to comply with this § 720.3033(1) places undue stress on associations, which may confuse board members seeking to fulfill their fiduciary duties to act within the law.
Second, homeowners’ associations now have a duty to create policies (now required by § 720.3033(2)) for assessing and collecting regular and special assessments. This is nothing new for community associations, but board members need to make sure that their collection policies:
- (1) are fair;
- (2) are teeth in the power of their efforts to collect regular and special assessments;
- (3) are consistently enforced.
Third, in addition to the "normal" budget requirements in the old version of Section 720.303, all HOAs must now include a line item in their buget for "Bad Debt Expense." This Bad Debt Expense must be equal to or greater than 5% of the association’s annual budget for the previous fiscal year. That is a new requirement. However, the real kicker is that the Annual Report of Financial Condition (required by s. 720.303(6)) must include a separate line item for uncollectable amounts.
Fourth, financial reports for any association with a fiscal year end of April 30 or earlier which is not otherwise exempt under Section 720.303(7), are now required to be audited, reviewed or compiled (a compilation with disclosures is an option) if the association has $500,000 or more in annual revenues. That is a significant change from the previous law.
Many community association board members already know that bad debt should be a line item in your budgets, but it is now a hard and fast requirement.
Dispute Handling Developments
One significant change in the new Florida HOA Laws of 2025 is in the procedures for dispute resolution between homeowners and their associations. These laws now require mandatory participation in mediation prior to initiating arbitration proceedings with the Division of Florida Condominiums, Timeshares and Mobile Homes. The Division will be tasked with managing this new pre-arbitration mediation process to evaluate the possibility of reaching a fair and efficient resolution prior to the initiation of more formal arbitration proceedings.
Mediation under the revised statute requires the parties to submit a written request to the Division for a mediation meeting within 150 days (rather than the previous 60 days) after the filing of their initial arbitration paperwork. The parties then have 2 days to negotiate the date for the mediation meeting with each other and, if no agreement is reached , that date is chosen by the assigned mediator.
The bigger change to the process is that written found mediation agreements must be filed with the Division and presented to the arbitrator assigned to the case. The arbitrator will then issue an order based on the negotiated agreement. This has the positive impact of disposing of disputes once they are settled and reducing the workload of the already congested the Division of Florida Condominium’s. It also provides an incentive for parties to at least attend a mediation session, even if not with the goal of actually settling the case. However, because a settlement may not be reached, the parties’ right to proceed with an arbitration hearing is preserved and expedited, if necessary, by virtue of the fact that they submitted a request well in advance of the end of the 150-day deadline.
This means that to effectuate the streamlining of the process, parties must decide from the outset whether it is in their best interests to mediate.
Effects on the Real Estate Market
The potential impacts of the 2025 law changes on Florida’s real estate are not yet clear. While some investors may shy away from certain HOAs, believing ahead of time that these new laws will make it harder to sell their homes, others may see value in these changes. Communities with a greater number of owner occupants, for example, might make for better investments if they have more access to dues and other forms of revenue. Others may see these legal protections as liabilities in the case of an HOA special assessment or if the condo fees increase significantly.
In addition to the question of whether these law changes will have a positive or negative impact on property value, they also raise the issue of how these laws may impact the market for new or existing construction. If installing solar panels and EV stations is guaranteed but subject to HOA approval, some buyers may look prior to purchase to seek out communities that have been previously approved for their preferred installations.
Preparing for Change
To ensure a smooth transition to the new laws, HOA boards should proactively assess their current documents and maintenance responsibilities. Here are some practical tips for navigating this shift: Review governing documents: Boards should review their covenants and restrictions to determine their responsibilities for road maintenance and drainage easements. Additionally, associations may want to begin the process of amending any inconsistencies with the new legislation. Communicate with owners: The passage of the new laws should not come as a surprise to members of the association. Boards should immediately communicate which items will remain the legal responsibility of the association and provide time estimates about when vendors will be in the community. Multiple forms of communication should be used that include regular updates at association meetings, texting and email blasts . Create an action plan: Create a matrix for tracking completed work, ongoing projects, proposed dates for completion and notes on unexpected roadblocks to ensure no task is forgotten. Regular updates and progress reports during board meetings will also assist in keeping the membership informed. Schedule regular meetings with your vendors: Boards should ask their landscape vendors and maintenance operators to attend board meetings to coordinate work and voice any frustrations they may have with compliance issues as they arise. While the impact of these new laws will not be felt for some time, it is important for associations to get an early start on addressing future issues now and with as much advance notice as possible instead of responding to future problems or complaints.