Florida HB 657 Explained: Can Homeowners Now Dissolve Their HOA?

Florida is on the verge of giving homeowners a power they have never had before: the ability to vote to dissolve their HOA entirely. House Bill 657, known as the Homeowners' Association Dissolution and Accountability Act, passed the Florida House on March 10, 2026 and is now headed to the Senate.

If signed into law by Governor DeSantis, HB 657 would take effect on July 1, 2026 and create the first statutory process for HOA termination in Florida history. For the estimated 9.5 million Floridians living in HOA communities — more than any other state — this bill is a watershed moment.

This guide breaks down exactly what HB 657 does, how the dissolution process works, what penalties it creates for board abuse, and what Florida homeowners need to know right now — whether the bill becomes law or not.

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 requires newly formed HOAs (starting July 1, 2026) to include "Kaufman language" in their governing documents. This ensures 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declaration automatically incorporates new statutory amendments as they occur — preventing HOAs from hiding behind outdated CC&Rs to avoid newer consumer protections.

Existing HOAs formed before July 1, 2026 must hold a member meeting by January 1, 2027 to vote on adding Kaufman language to their documents.

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 provision: the termination procedures apply retroactively to HOAs dissolved before, on, or after July 1, 2026. This means homeowners in communities that previously attempted dissolution may be able to use the new process to validate or complete those efforts.

One of HB 657's strongest provisions targets board members who obstruct or manipulate the dissolution process. Under the bill:

• Using HOA funds to campaign for or against a termination plan is punishable by a fine of up to $5,000 per violation
• Failing to hold a meeting after receiving a valid petition is punishable by the same $5,000 fine
• Hiding financial records relevant to termination plans carries the same penalty
• Violating board members can be removed from office

These penalties directly address one of the most common complaints from Florida homeowners: that HOA boards use their position and association funds to protect their own power, making it virtually impossible for homeowners to hold them accountable.

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 current legislative status as of March 2026:

• March 10, 2026: The Florida House approved HB 657
• Next step: The bill moves to the Florida Senate for consideration
• If passed by Senate and signed by Governor DeSantis: Takes effect July 1, 2026

Florida has passed major HOA reform in recent years — notably HB 1203 in 2024, which created transparency requirements, board member penalties, and stronger homeowner protections. HB 657 builds on that momentum. Given the strong House vote and broad public support for HOA reform, the bill has a realistic path through the Senate.

Whether or not HB 657 passes the Senate, 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. These records will be critical if HB 657 passes and you want to pursue dissolution.
3. Talk to your neighbors: Reaching the 20% petition threshold (if the bill passes) requires community organizing. Start conversations now 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 HB 657 is designed to fill.
5. Stay informed: Follow the bill's progress through the Florida Senate. We will update this page as the legislative process moves forward.

Florida's HB 657 is part of a growing national movement to rein in HOA power and expand homeowner rights. 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 — is leading the charge.

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