Regulating Florida HOAs - Draft Report Issued by OPPAGA
The Office of Program Policy Analysis & Government Accountability (OPPAGA) Issues Report Outlining Various Options for Regulation of Homeowners Associations (HOA).
OPPAGA evaluates performance and accountability of various governmental activities. The Draft Report finds that the legislature showed significant interest in regulating Florida's Mandatory Membership Homeowners Associations over the past several years. In 2007 a Senate interim study recommended alternative dispute resolution mechanisms to facilitate resolution of homeowner issues. The 2008 Select Committee on Condominium and Homeowners Association Governance recommended increasing enforcement, mandatory education for board members and allowing local law enforcement to access association records during an investigation. In 2009, the Community Association Living Study Council recommended immediate legislative action to curtail the powers of homeowners associations.
The Draft Report describes several options available to the Legislature, to wit:
| OPTION | ADVANTAGES | DISADVANTAGES |
| Maintain Status Quo | No Cost |
Inability to effectively calculate # of HOAs and homes governed by HOAs Remains difficult to determine extent of problems |
|
Collect Information |
Allows Legislature to estimate needs/costs of additional services Department of State can perform this service without additional cost |
Requires HOAs to report information |
| Expand Service of Office of Ombudsman to HOAs |
Disputes are similar - staff already has expertise Resolutions without expensive pre-suit mediation or litigation Education designed to minimize disputes Provide tracking data
|
Unknown Cost - needs source of funding |
| Regulate Like Condos/Coops |
State mediation/arbitration services may reduce litigation Education could minimize disputes More uniform enforcement of laws |
Unknown cost - 2006 study estimated $10 million in funding required annually |
The Ombudsman's Office reports that most of the complaints about HOAs concern properties in South Florida. The complaints are largely similar to Condo/Coop complaints - the majority of which include lack of access to association records, election disputes, selective enforcement of covenants and the inability to participate at meetings.
Is it time for Florida to provide more oversight to HOAs? Would Florida homeowners benefit from the services of the Ombudsman or the DBPR? Would the costs justify or outweigh the benefits?
There are a number of bills filed for consideration during the 2010 legislative session - some of which include additional regulations for HOAs. Please refer to other posts on this site for information about pending bills or visit CALL to participate in the legislative process.