Should Florida Homeowners Be Watching New HOA Legislation? Fraud, Dissolution, and What It Means for Your Community

Homeowners associations (HOAs) are part of life for many communities — including mine. Whether you love HOAs or can’t stand them, they play a big role in how neighborhoods are governed, amenities are maintained, and property values are protected.

Recently, two major topics have come into the spotlight: fraud in HOAs and proposed legislation that could allow communities to dissolve associations by vote.

A Real Example: The Hammocks HOA Fraud Case

Earlier this year, a community in the West Kendall area of Miami-Dade County — the Hammocks Community Association — made headlines. Board members there were accused of rampant fraud, allegedly mishandling millions of dollars in association funds over multiple years. That case has since led to criminal charges and intense scrutiny of HOA leadership. This isn’t an isolated incident; it’s part of a wider set of stories in Florida about misuse of association funds and lack of transparency.

When money meant for common area maintenance, landscaping, repairs, insurance, and community services is misused, it not only hurts the budget — it hurts every homeowner’s investment.

The Proposed Florida Bill: HOA Dissolution by Community Vote

In response to situations like this and growing concerns about accountability, the Florida Legislature introduced House Bill 657. Though it hasn’t become law yet, its goal is straightforward:

➡️ Give homeowners in an HOA a legal process to dissolve their association through community action and voting.

Under the proposal:

• A petition signed by a defined percentage of homeowners could trigger a dissolution vote.

• If a supermajority (often around two-thirds) of owners approve, the HOA could be dissolved.

• If dissolution happens, the community would then need a plan for handling finances, assets, and services once the association is gone.

Supporters see it as accountability for owners — a way to prevent ongoing mismanagement or fraud when associations go off the rails. Critics worry that communities might lose essential services, amenities, or infrastructure care — which could ultimately hurt home values.

What Homeowners Should Know

This topic matters whether you’re currently in an HOA or considering buying in one:

• Transparency and Oversight Still Matter
Whether or not dissolution becomes law, it highlights how important financial transparency and good governance are in an HOA.

• Know Your Governing Documents
Your HOA’s declaration, bylaws, and rules outline how assessments are used, what powers the board has, and what rights members have — and these matter a lot if you’re concerned about leadership or spending.

• Stay Informed About Legislation
If House Bill 657 or similar measures advance, they could reshape how Florida communities operate and how much control owners have over their associations.

Final Thoughts

At the end of the day, the goal isn’t to stir controversy — it’s to help homeowners understand their rights, the risks, and the opportunities ahead. Whether HOAs serve their purpose well or face reform, being informed benefits everyone.

If you want help understanding your HOA documents, budget, or how this might affect your property here in Jacksonville or Northeast Florida, just reach out.