The Association Advocate - Florida HOA and Community Association Newsletter - Volume II

Community Connections: Important Changes Coming Under HB 797

What Community Associations Need to Know After July 1, 2026

While the 2026 Florida Legislative Session left Chapters 718, 719, and 720 untouched, the Legislature passed HB 797, which significantly amends Chapter 617—the statute now renamed the "Florida Nonprofit Corporation Act." Because virtually all community associations in Florida are organized as nonprofit corporations under Chapter 617, these amendments directly affect how every community association is governed.

Director Standards of Conduct – A Substantial Rewrite

One of the most impactful changes is the substantial rewrite of Section 617.0830, which governs director standards of conduct. Under the statute, each director must act: (a) in good faith; and (b) in a manner the director reasonably believes is in the best interests of the corporation.

The new law also codifies a split "duty of care," requiring directors to exercise the care that an ordinarily prudent person in a like position would reasonably believe appropriate under similar circumstances—both when becoming informed in connection with a decision-making function and when devoting attention to oversight functions. This effectively codifies a Caremark-style oversight duty, meaning boards must actively monitor finances, vendors, insurance, and statutory compliance.

Importantly, the statute expressly permits directors to rely on the performance, information, opinions, reports, or statements of certain qualified persons (including officers, legal counsel, accountants, and board committees) so long as the director does not have knowledge that makes such reliance unwarranted. By engaging qualified professionals and following their recommendations, boards can satisfy their fiduciary obligations and invoke the business judgment rule.

These standards are not limited to the board alone. Committee members (including those serving on architectural review, finance, budget, and covenant committees) are now expressly covered by the same standard.

Officer Duties and the New Duty to Inform

HB 797 also creates new Section 617.0833, establishing minimum duties and standards of care for officers. Officers who learn of problems now have an express statutory obligation to escalate, including informing a superior officer or the board of any material information, any actual or probable material violation of law, or any material breach of duty to the corporation.

Expanded Liability Immunity

Under revised Section 617.0834, directors and officers are generally immune from personal liability for monetary damages unless their breach constitutes: (1) a violation of criminal law; (2) an improper personal benefit; (3) conscious disregard or willful misconduct; or (4) recklessness, bad faith, or malicious purpose. This expanded protection extends to all nonprofit directors and officers - though notably, developer-appointed directors do not benefit from the indemnification provisions.

Conflict-of-Interest Transactions

Section 617.0832 has been substantially reworded to expand safe harbors for conflict-of-interest transactions. Transactions are not void or voidable if fair to the corporation when properly authorized, including through disclosure and approval by a majority of qualified directors or by a majority of disinterested member votes. Cross-references in Sections 718.3027 (condominiums) and 720.3033 (HOAs) require compliance and entry of disclosures into meeting minutes.

Other Notable Changes

Additional amendments under HB 797 include: a new "qualified director" framework for sensitive votes; codified registered agent duties with a 31-day window to designate a replacement upon resignation; reduction of the minimum number of directors from three to one; a new judicial removal of directors mechanism under Section 617.08091; codified proxy voting with authorization of electronic signatures; and a new derivative-proceeding framework.

Action Items for Your Association

Boards that engage qualified professionals, document their decision-making process, and actively monitor association operations will be well-positioned to satisfy these statutory requirements and invoke the protections of the business judgment rule.

Enforcing Your Community’s Governing Documents: A Step-by-Step Guide to Seeking Injunctive Relief Under Florida Law

Whether your community is governed by Chapter 720 (the Homeowners’ Association Act) or Chapter 718 (the Condominium Act) of the Florida Statutes, your association has powerful legal tools to ensure homeowners and unit owners comply with the community’s governing documents.

However, for certain types of disputes, Florida law imposes a critical procedural prerequisite before your association can file a claim in court: the presuit mediation demand.

Why Does the Law Require Presuit Mediation?

The Legislature has found that alternative dispute resolution reduces court dockets and offers a more efficient, cost-effective option to litigation. The presuit mediation requirement serves two purposes:

• To avoid unnecessary litigation costs, which are borne by the association, its members through assessments, and the owner facing the claim.
• To foster amicable resolution between neighbors and preserve relationships within the community. Community associations are, at their core, neighborhoods. Encouraging cooperative problem-solving serves the long-term health of the community far better than adversarial litigation.

The Legal Framework: Your Association’s Right to Seek Compliance

Under Section 720.305(1), Florida Statutes, and Section 718.303(1), Florida Statutes, each member or unit owner of an association (and the member’s tenants, guests, and invitees) must comply with Chapter 720 or Chapter 718 respectively, the governing documents of the community, and the rules of the association.

The association may bring actions at law or in equity, or both, to redress an alleged failure or refusal to comply with the governing documents or Florida Statutes, which includes seeking a court order requiring the homeowner to come into compliance (otherwise known as “injunctive relief”).

What Disputes Require Presuit Mediation?

Condominium Associations. For condominium associations, under Section 718.1255, Florida Statutes, the following types of disputes are subject to the presuit mediation requirement:

• disputes involving the authority of the board of directors to require any owner to take any action, or not to take any action, involving that owner’s unit or the appurtenances thereto,
• disputes involving the authority of the board of directors to alter or add to a common area or element,
• disputes involving the failure to properly conduct elections,
• disputes involving the failure to give adequate notice of meetings or other actions,
• disputes involving the failure to properly conduct meetings,
• disputes involving the failure to allow inspection of books and records; and
• disputes involving a plan of termination.

For condominium associations, Section 718.1255 also permits a party to petition the Division of Florida Condominiums, Timeshares, and Mobile Homes for nonbinding arbitration (or binding arbitration, if all parties in arbitration agree to be bound in a writing filed in arbitration) in lieu of presuit mediation.

Homeowners Associations. For homeowners associations, under Section 720.311, Florida Statutes, the following types of disputes are subject to the presuit mediation requirement:

• disputes regarding use of or changes to the parcel or the common areas;
• disputes regarding covenant enforcement;
• disputes regarding amendments to the association documents;
• disputes regarding board meetings, committee meetings, and membership meetings (not including election meetings); and
• disputes regarding access to the official records of the association.

What Is NOT Subject to Presuit Mediation?

Condominium Associations. For condominium associations, under Section 718.1255, Florida Statutes, the following types of disputes are exempt from the presuit mediation demand requirement:

• disputes that involve title to any unit or common element;
• disputes that involve the interpretation or enforcement of any warranty;
• disputes that involve the collection of assessments, fines, or other financial obligations;
• disputes that involve the eviction or other removal of a tenant from a unit;
• disputes that involve an alleged breach of fiduciary duty by one or more directors; or
• disputes that involve claims for damages to a unit based upon the alleged failure of the association to maintain the common elements or condominium property.

Homeowners Associations. For homeowners associations, under Section 720.311, Florida Statutes, the following types of disputes are exempt from the presuit mediation demand requirement:

• disputes that involve the collection of any assessment, fine, or other financial obligation;
• disputes that involve any action to enforce a prior mediation settlement agreement between the parties; and
• election disputes and recall disputes (these must be arbitrated by the Division or filed in court).

The Emergency Exception. Importantly, in any dispute subject to presuit mediation, where emergency relief is required, a motion for temporary injunctive relief may be filed with the court without first complying with the presuit mediation requirements.

Step-by-Step: The Presuit Mediation Process

Step 1: Identify the Violation. Document the specific covenant, restriction, rule, or bylaw provision being violated. Identify the specific action (or inaction) by the homeowner that constitutes the violation.

Step 2: Issue Notice. Before escalating to the formal presuit mediation demand, most associations will first provide the homeowner with a courtesy violation notice and an opportunity to cure. While not always statutorily required for covenant enforcement claims, this demonstrates good faith and reasonableness.

Step 3: Serve the Presuit Mediation Demand Letter. The association must serve a written demand to participate in presuit mediation on the homeowner. The demand must conform to the substantive requirements set forth in the statute, and be sent by certified mail, return receipt requested, with an additional copy sent by regular first-class mail, to the owner’s address as it appears in records of the association. The owner has 20 days from the date of mailing to serve a written response. The response must be served by certified mail, return receipt requested, with an additional copy by regular first-class mail.

Step 4: Conduct Mediation (If Agreed). If both parties agree to mediate, the mediation conference must be held within 90 days of the demand, unless extended by mutual written agreement. The parties share the costs of mediation equally, including the mediator’s fee, unless they agree otherwise. If mediation is conducted but does not resolve all issues, the parties may file the unresolved dispute in court or elect to enter into binding or nonbinding arbitration.

Step 5: If Mediation Fails or the Homeowner Refuses to Participate. If the owner fails to respond within 20 days, or fails or refuses to participate in mediation, the lack of response or refusal by the owner operates as an impasse, entitling the association to proceed in court. Additionally, an owner who fails or refuses to participate in the mediation process may not recover attorney’s fees and costs in subsequent litigation relating to the dispute.

Step 6: File the Lawsuit for Injunctive Relief. Only after the presuit mediation process has been exhausted (either through an unsuccessful mediation or a refusal to participate) may the association file its action for injunctive relief in court.

Filing Suit Without a Presuit Mediation Demand Can Be Fatal

Failing to comply with the presuit mediation demand requirement is not merely a technical deficiency. In fact, this procedural misstep may subject claims to dismissal, whether such claims are filed by a homeowner suing the association, or by the association suing a homeowner.

The Prevailing Party Recovers Attorney’s Fees

Both Chapter 720 and Chapter 718 provide that the prevailing party in covenant enforcement litigation is entitled to recover reasonable attorney’s fees and costs. As to any issue that is not resolved at presuit mediation, the prevailing party in any subsequent arbitration or litigation is entitled to seek recovery of all costs and attorney’s fees incurred in the presuit mediation process as well.

Florida Supreme Court to Review Potential Limitation on Association’s Right to Injunctive Relief

Earlier this year, the Florida Supreme Court accepted jurisdiction to review a certified conflict between the Fourth District Court of Appeal and the Second and Sixth District Courts of Appeal, which will set the standard for when Florida associations may seek injunctive relief to enforce declaration covenants when the governing documents also give the association a self-help remedy.

For community associations, the issue is significant because the Florida Supreme Court is being asked to resolve a district-court split over whether an association may go directly to court for injunctive relief when its governing documents also provide a self-help and assessment remedy.

The Fourth District held that the association could pursue injunctive relief where its governing documents also provide a self-help and assessment remedy, because Chapter 720 and the declaration allowed equitable remedies and did not make self-help exclusive.

By contrast, the Second and Sixth Districts have held that similar self-help provisions can supply an adequate remedy at law, thereby preventing an association from obtaining injunctive relief in comparable maintenance-enforcement disputes.

Until the Supreme Court resolves the conflict, boards should consult counsel before electing self-help or litigation in covenant-enforcement disputes, particularly where entry onto an owner’s property or corrective work by association vendors may be involved.

Lien on Me? Not So Fast: Unit Owners Defeat Association Contractor’s Lien

In a recent decision, Florida's Second District Court of Appeal confirmed that individual condominium unit owners have standing to challenge mechanic's liens recorded against their units, even when the underlying contract was between the contractor and the condominium association. 

Read more.