2026 Legislative Update for Florida Community Associations

Florida’s 2026 Legislative Session was significantly quieter than the prior several years, which saw sweeping reforms impacting condominium and homeowners’ associations throughout the state. While no major overhaul of Chapters 718 or 720 was enacted during the 2026 Session, there are several statutory changes that will impact community associations, directors, officers, committee members, community association managers, and management companies. The most significant change is the revision to Chapter 617, Florida’s Nonprofit Corporation Act, which applies to virtually every community association organized as a Florida nonprofit corporation.

The below summaries provide an overview of the legislation impacting Florida community associations. This summary is for informational purposes only and provides a broad overview of statutory changes affecting community associations. Directors and managers are encouraged to consult legal counsel to determine how these changes may affect their community.

HOUSE BILL 797 – FLORIDA NONPROFIT CORPORATION ACT
Effective July 1, 2026

Director Standards of Conduct – Florida Statute 617.0830

1. Directors must act in good faith and in a manner reasonably believed to be in the best interests of the corporation.
2. Clarifies director duties relating to both decision-making and oversight responsibilities.
3. Directors may rely upon information provided by officers, legal counsel, accountants, professionals, and committees unless circumstances make such reliance unwarranted.
4. Extends statutory standards of conduct to committee members acting on behalf of the association.
5. Committee members serving on architectural review committees, finance committees, covenant enforcement committees, and similar committees are subject to the same statutory standards applicable to directors.

Officer Duties – Florida Statute 617.0833

1. Establishes statutory standards of conduct for officers.
2. Requires officers to act in good faith and in a manner reasonably believed to be in the best interests of the corporation.
3. Requires officers who become aware of material violations of law, material misconduct, or material breaches of duty to report such information to a superior officer or the board of directors.

Director and Officer Immunity – Florida Statute 617.0834

1. Expands protections against personal liability for monetary damages.
2. Immunity does not apply to criminal conduct, improper personal benefits, conscious disregard of duties, willful misconduct, recklessness, bad faith, or malicious conduct.
3. Clarifies that developer-appointed directors are not entitled to certain statutory indemnification protections.

Conflicts of Interest – Florida Statute 617.0832

1. Expands statutory protections for transactions involving potential conflicts of interest.
2. Conflict transactions are not automatically voidable if properly disclosed and approved.
3. Approval may be obtained through qualified directors or disinterested voting members, as applicable.
4. Disclosures should be reflected in the association’s meeting minutes.

Corporate Governance Changes

1. Creates additional procedures governing qualified director voting.
2. Establishes procedures for judicial removal of directors.
3. Codifies electronic proxy voting.
4. Creates procedures governing derivative actions.
5. Reduces the minimum number of directors required for a nonprofit corporation from three (3) directors to one (1) director.
6. Requires appointment of a replacement registered agent within thirty-one (31) days following a resignation.

HOUSE BILL 803
Effective July 1, 2026

Architectural Review and Building Permits – Florida Statute 720.3035

1. Homeowners’ associations may not require a governmental building permit as a prerequisite to architectural review.
2. Associations may still require compliance with governing documents and applicable architectural standards.
3. Owners are entitled to submit architectural applications regardless of whether a building permit has been issued.
4. Associations should review architectural review procedures and guidelines to ensure compliance with the new statute.

TECHNICAL AMENDMENTS TO COMMUNITY ASSOCIATION STATUTES
Effective May 12, 2026

Authority and Responsibilities of the Division – Florida Statute 718.501

1. Technical amendments were made to §718.501.
2. The amendments do not substantially alter condominium association governance requirements.

Cooperative Associations – Florida Statute 719.106

1. Technical amendments were made to the cooperative association statute.
2. The amendments do not create significant operational changes for cooperative associations.

2026 COMPLIANCE REMINDERS FROM PRIOR LEGISLATIVE SESSIONS

DBPR Online Registration Requirements – Florida Statutes 718.501 & 719.501

1. Condominium associations must maintain an online account with the Division of Florida Condominiums, Timeshares, and Mobile Homes.
2. Associations must provide and maintain current contact information through the online portal.
3. Changes to required information must be updated within thirty (30) days.
4. Associations must provide copies of structural integrity reserve studies upon request by the Division.
5. Cooperative associations are subject to the same online registration requirements under §719.501.

Inflation-Adjusted Reserve Threshold – Florida Statute 718.112(2)(g)

1. The Division is required to annually adjust the minimum reserve threshold for inflation.
2. The inflation-adjusted reserve threshold must be posted on the Division’s website by February 1 of each year.
3. Boards should confirm the applicable reserve threshold when preparing annual budgets and reserve calculations.

Federal Lending Guideline Changes Affecting Community Associations

Although not legislative changes, boards and managers should be aware of new lending requirements implemented by Fannie Mae and Freddie Mac that may impact property values, financing availability, and association budgeting.

Reserve Funding Requirements

1. Beginning January 4, 2027, reserve funding requirements for project eligibility will increase from ten percent (10%) to fifteen percent (15%) of annual assessment income.
2. Associations utilizing reserve studies may qualify under alternative funding methods if reserve studies satisfy lender requirements.
3. Boards should begin evaluating reserve funding needs before budget adoption for 2027.

Insurance Requirements

1. Effective July 1, 2026, certain lending standards impose a maximum per-unit insurance deductible requirement of Fifty Thousand Dollars ($50,000).
2. Associations should review existing insurance policies and consult insurance professionals regarding compliance.

Project Review Requirements

1. Effective August 3, 2026, the “Limited Review” process for many condominium projects is eliminated.
2. Additional project review requirements may impact mortgage availability within condominium communities.
3. Associations should consult lending professionals regarding the impact of these requirements on future sales and financing activity.

Significant Community Association Bills That Did Not Pass

The following bills were proposed during the 2026 Legislative Session but did not become law:

1. HB 657 relating to homeowners’ association termination and accountability.
2. SB 722 relating to structural integrity reserve study requirements.
3. SB 822 and HB 465 relating to community association management requirements.
4. SB 638 and HB 255 relating to turnover certificates and official records.
5. SB 906 creating an HOA Ombudsman.
6. SB 908 imposing an annual fee on homeowners’ associations.
7. CS/SB 1498 relating to community associations and reserve requirements.
8. SB 1744 and HB 1541 relating to association meeting audioconferencing procedures.

Because several of these proposals received significant attention during the 2026 Session, boards, managers, and management companies should continue monitoring future legislative sessions for similar proposals.

If you have questions regarding how these new laws, amendments, or regulatory requirements may impact your Association, please feel free to contact our office for assistance.