Florida HB 797: 8 Proposed Changes HOA and Condo Boards Should Know

Many Florida condominium and homeowner (HOA) associations are legally organized as nonprofit corporations under Chapter 617 of the Florida Statutes, which governs how nonprofit corporations are formed, structured, and managed. This includes board authority, officer duties, meetings, and corporate powers. However, associations must also comply with the Florida Condominium Act (Chapter 718) or the Florida Homeowners’ Association Act (Chapter 720) which contain more specific operational rules for community associations.

Florida House Bill 797 updates and modernizes Chapter 617, meaning those corporate governance changes apply to associations unless Chapters 718 or 720 provide a different requirement.

Below are eight changes Florida HOA and condo boards should know if HB 797 ultimately passes and is signed into law with a proposed effective date is July 1, 2026.

1. Officers Now Have Clear Fiduciary Duties: Previously, Chapter 617 clearly described director fiduciary duties, but it was less explicit about officers. HB 797 would require officers to act in good faith, with reasonable care, and in the best interests of the association. Officers now have clear statutory fiduciary duties similar to directors involving finances, contracts, and enforcement in the best interests of the association.

2. Expanded Liability Protection for Volunteer Board Members: Volunteer board members often worry about personal liability. HB 797 strengthens statutory liability protections for directors and officers acting within their authority and without willful misconduct or criminal activity. This supports the volunteer governance structure common in associations.

3. Clear Court Process for Removing Directors: The new proposed statute would establish standards for the judicial removal of directors. A court may remove a director if the person engaged in fraudulent conduct, abused authority, or act in a way harmful to the association.

4. Updated Board Vacancy and Term Rules: Associations frequently face vacancies due to resignations, move-outs, and a lack of candidates. HB 797 clarifies provisions involving filling board vacancies, board composition, director terms, and elections The revised statute helps boards continue functioning when seats become vacant

5. Remote Meeting Participation is Expanded: The proposed law modernizes rules allowing directors and members to participate remotely if the association provides an online meeting system (ex. Zoom) provided procedural safeguards exist.

6. Electronic and Flexible Notice Methods: Associations increasingly use email notices, electronic portals, and virtual meeting announcements. The statute would expand acceptable forms of written notice including electronic communication if authorized and while maintaining legal requirements.

7. Authority to Impose Fines or Penalties: HB 797 confirms that nonprofit corporations like Florida community association may impose fines or penalties when authorized by their governing documents.

8. Board Actions When a Nonprofit Has No Members: The statute clarifies that board action may satisfy meeting and voting requirements if a nonprofit has no members. While this provision is less relevant for traditional HOAs and condos (which typically have members), it may impact dome master associations and developer-controlled entities.

You can find more information about House Bill 797 here: https://www.flsenate.gov/Session/Bill/2026/797

Legal Resource

HB 797 largely modernizes nonprofit governance rules for Florida community associations rather than dramatically changing day-to-day operations. For board members and property managers, the most meaningful proposed impacts involve:

• Clearer fiduciary duties for officers
• Expanded director liability protections
• Remote meeting participation
• Updated notice methods
• Enforcement authority confirmation

KSN will continue to monitor these Florida legislative changes closely and provide updates as developments occur. Please contact us if you have questions regarding the proposed legislation or have questions regarding board member responsibilities, meeting requirements, or other legal concerns.

Please call 855-537-0500 or visit www.ksnlaw.com.

Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.

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