Florida HB 657 Explained: HOA Dissolution Bill Dies in Senate

Update (March 29, 2026): Florida HB 657 died in the Senate on March 27, 2026, after the Senate declined to take up the bill before the legislative session ended on March 13. Despite passing the Florida House 108-2, the bill never received a Senate vote. Sponsor Rep. Juan Porras has indicated he plans to refile the legislation in the 2027 session.

House Bill 657, known as the Homeowners' Association Dissolution and Accountability Act, would have created the first statutory process for HOA termination in Florida history. It passed the Florida House on March 10, 2026 with overwhelming bipartisan support (108-2) but the Senate never brought the bill to a vote.

For the estimated 9.5 million Floridians living in HOA communities — more than any other state — this is a setback but not the end. Understanding what HB 657 proposed remains important because similar legislation is expected in 2027. This guide breaks down what the bill would have done, why the Senate blocked it, and what Florida homeowners can do right now under existing law.

HB 657 is not a minor tweak — it is the most significant HOA reform bill in Florida since the landmark HB 1203 reforms of 2024. Here is what it creates:

1. A Legal Process to Terminate Your HOA

For the first time in Florida, homeowners would have a clear statutory path to dissolve their homeowners association. Currently, there is no standardized process — dissolution requires navigating complex governing documents and often requires near-unanimous consent, making it practically impossible.

2. The Community Association Court Program

HB 657 creates a dedicated Community Association Court Program within Florida's judicial circuits. This specialized track would be staffed by qualified arbitrators who handle HOA disputes specifically — giving homeowners a faster, more accessible path to resolving conflicts than the current general court system.

3. Elimination of Mandatory Presuit Mediation

Under current law, homeowners and HOAs must go through presuit mediation before escalating a dispute. HB 657 removes this requirement, allowing disputes to move directly into arbitration or the new court program. This is a major win for homeowners who have seen mediation used as a delay tactic by well-funded HOA boards.

4. Kaufman Language Requirement

The bill would have required newly formed HOAs to include "Kaufman language" in their governing documents (the version that passed the House used a proposed July 1, 2026 start date). This would ensure that an association's declaration automatically incorporates new statutory amendments as they occur — preventing HOAs from hiding behind outdated CC&Rs to avoid newer consumer protections. Because HB 657 died in the Senate, none of these dates took effect.

Under the proposed bill, existing HOAs would have had to hold a member meeting by a future deadline to vote on adding Kaufman language. None of this is current law.

If HB 657 becomes law, here is the step-by-step process Florida homeowners would use to terminate their HOA:

1. Petition for termination: A parcel owner must collect signatures from at least 20% of the voting interests of the HOA on a petition for a plan of termination. This is intentionally a low threshold to prevent boards from blocking dissolution efforts before they even begin.
2. Board meeting required within 60 days: Once the board receives a valid petition, they must hold a meeting of all members within 60 days. This meeting must include an explanation of how common areas and assets will be managed or transferred, and the manner in which voting will take place.
3. Supermajority vote: The plan of termination must be approved by at least two-thirds (66.7%) of the total voting interests. This is a high bar designed to ensure dissolution only happens when a clear majority wants it.
4. Trustee appointment: After approval, a trustee is appointed to manage the wind-down process — closing accounts, transferring common area ownership, and resolving outstanding obligations.
5. Board continues duties: The HOA board must continue fulfilling its duties until the trustee completes the dissolution process. They cannot abandon their responsibilities or retaliate against homeowners who supported termination.

Retroactive Applicability

A significant proposed provision: the termination procedures would have applied retroactively to HOAs dissolved before, on, or after the bill's proposed July 1, 2026 effective date. This would have meant homeowners in communities that previously attempted dissolution could use the new process to validate or complete those efforts. Because the bill failed, this retroactive provision is not law.

Important: The following penalty figures come from descriptions of the bill as it moved through the House. They are proposed provisions of a bill that did not become law — they are not current Florida law, and the specific dollar amounts could not be independently verified against an enacted statute. One of HB 657's strongest proposed provisions targeted board members who obstruct or manipulate the dissolution process. Under the bill as proposed:

• Using HOA funds to campaign for or against a termination plan would have been punishable by a fine reported at up to $5,000 per violation
• Failing to hold a meeting after receiving a valid petition would have carried the same reported penalty
• Hiding financial records relevant to termination plans would have carried the same penalty
• Violating board members could have been removed from office

These proposed penalties were meant to address one of the most common complaints from Florida homeowners: that HOA boards use their position and association funds to protect their own power. Because the bill failed, none of these penalties are in effect.

Dissolving your HOA does not make all community responsibilities disappear. Homeowners considering a termination petition should understand the practical implications:

Common Areas and Shared Property

Community pools, parks, roads, gates, and other common areas must be addressed in the termination plan. Options typically include:

• Transfer to local government (county or municipality) — the cleanest option if the government agrees
• Transfer to a new simplified entity that manages only the common areas
• Division among homeowners as shared ownership — most complex and often impractical

Insurance

HOAs typically carry master insurance policies covering common areas and shared structures. After dissolution, each homeowner becomes individually responsible for their property insurance. This can increase individual costs, particularly for communities with shared roofing, walls, or infrastructure.

Maintenance Costs

Services previously funded by HOA dues — landscaping of common areas, gate maintenance, pool upkeep, street lighting — become the responsibility of individual homeowners or must be negotiated with local government.

CC&R Restrictions

Even after dissolution, some deed restrictions recorded in the county records may survive. These are separate from HOA enforcement — they run with the land and can only be changed by amending the recorded documents. However, without an HOA to enforce them, deed restrictions are generally enforceable only through individual neighbor lawsuits, which are rare.

Here is the full legislative timeline of HB 657:

• March 10, 2026: The Florida House approved HB 657 with an overwhelming 108-2 vote
• March 13, 2026: The Florida Senate session ended without taking up HB 657
• March 27, 2026: The bill was officially declared dead — the Senate never brought it to a vote

Despite massive public support and a near-unanimous House vote, the Florida Senate gave the bill a cold shoulder. Senate leadership never scheduled a committee hearing or floor vote, effectively killing the bill through inaction. Rep. Juan Porras, who called HOAs a "failed experiment" allowed to "run amok," has vowed to bring the legislation back in the 2027 session.

This is not unusual in Florida politics — major reform bills often require multiple sessions to build enough Senate support. The strong House vote (108-2) signals broad bipartisan agreement that HOA reform is needed. Homeowners should prepare for a renewed push in 2027.

HB 657 is dead for now, but that does not mean you are powerless. Here are concrete steps every Florida HOA homeowner should take:

1. Know your current rights: Florida already has strong HOA protections under Statute Chapter 720. Your HOA must provide 14 days written notice before fining you, offer a hearing within 90 days, and allow you to cure violations before imposing penalties.
2. Document board behavior: If your board is misusing funds, refusing to provide financial records, or retaliating against homeowners — document everything. When similar legislation returns in 2027, these records will support the case for reform and help you pursue dissolution if a bill passes.
3. Talk to your neighbors: Building community support now puts you in a strong position when dissolution legislation returns. Start conversations about community satisfaction with the HOA. A simple survey can gauge interest without committing to anything.
4. Review your governing documents: Understand what your CC&Rs currently say about dissolution or termination. Many are silent on the topic — which is exactly the gap future legislation aims to fill.
5. Support the 2027 push: Contact your Florida state senator and let them know you support HOA reform. The House voted 108-2 — the Senate needs to hear from constituents that this issue matters. Follow our legal trends page for updates on the 2027 legislative session.

Although HB 657 died in the Florida Senate, it is part of a growing national movement to rein in HOA power and expand homeowner rights. The 108-2 House vote shows the political will exists — it is only a matter of time before the Senate catches up. Other states to watch:

• California: AB 130 caps HOA fines at $100 per violation for non-safety issues. SB 770 removes barriers to EV charger installation. SB 625 protects disaster rebuild rights.
• Texas: HB 614 requires HOAs to provide detailed fee and fine information online and annually.
• Washington: WUCIOA took full effect January 1, 2026, requiring open board meetings and free assessment payment options.
• Colorado: Requires HOAs to mail financial summaries to all owners after adopting a budget, with homeowner veto rights.

The common thread: state legislatures are responding to years of homeowner complaints about HOA overreach, financial mismanagement, and lack of accountability. Florida — with more HOA residents than any other state — will likely see renewed reform efforts in 2027.

For a comprehensive overview of all 2026 HOA law changes, see our HOA Legal Trends 2026 guide.