Committee approves HOA reform bill to create community association specialty court and dissolution process
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Summary
The committee reported CS for CS House Bill 657 favorably after sponsor and proponent testimony; the bill would create a community association specialty court program, provide a plan of dissolution for associations, eliminate pre-suit mediation for certain cases and include initial funding for judges and staff.
The committee voted to report CS for CS House Bill 657 favorably after consideration of an amendment that clarified the bill’s budgetary process and initial funding for the specialty court program.
Representative Boris introduced the measure, describing three main changes: creation of a community association specialty court program to oversee HOA and condominium disputes; a statutory plan of dissolution for associations where membership votes to dissolve; and the elimination of pre-suit mediation for certain cases. The amendment adopted on the floor allocated $1,000,000 in general revenue and $1,200,000 from the state courts revenue trust fund, along with judge and staff positions for initial operation in three judicial circuits.
Several proponents waived in support; Kimberly McDaniel of HOA Reform League gave detailed, emotional testimony describing her personal experience alleging missing association funds of $37,000, retaliatory litigation, and thousands of dollars in legal defense costs. McDaniel testified the existing oversight and remedies were inadequate, saying the system allowed an "appointed Board operating without any oversight" and left homeowners exposed to financial harm. She urged the committee to support HB 657.
Representative Boris and other committee members framed the bill as a response to widespread constituent complaints about HOA governance. After debate and adopting the amendment to provide start-up funding and judicial positions, the committee closed and voted to report the bill favorably.