Florida HOA Powers, Records, and Budgets: Fla. Stat. 720.303

What the law covers

Florida Statute Section 720.303 governs the powers, duties, and operations of homeowners' associations operating communities in Florida. The law requires associations to be Florida corporations and specifies that officers and directors owe a fiduciary relationship to members.

Note that the association's governing documents and later amendments may also apply alongside these statutory rules.

The statute outlines board powers regarding litigation, board meeting requirements, rules for preserving official records, website posting requirements for associations with 100 or more parcels, budgeting and reserve account formulas, and mandatory annual financial reporting thresholds.

Key requirements and limits

The statute sets explicit operational limits and rules for associations:

• Litigation Limit: Before starting litigation involving controversy amounts exceeding $100,000, the association must get affirmative approval from a majority of the voting interests at a meeting with a quorum.
• Board Voting & Email: Directors may use email to communicate, but they are expressly prohibited from voting on association matters via email, proxy, or secret ballot (except secret ballots used for electing officers).
• Official Records Retention: Most official records must be retained for at least 7 years. Voting records (ballots, proxies, sign-in sheets) and contractor bids must be kept for at least 1 year.
• Website Requirement: By January 1, 2025, associations with 100 or more parcels must post official documents (bylaws, covenants, annual budgets, financial reports, rules, executory contracts) on a secure website or mobile application accessible only to parcel owners and employees.
• Financial Reporting Thresholds: Annual financial reports must be completed within 90 days after the end of the fiscal year based on total annual revenue:
  • Less than $150,000: Report of cash receipts and expenditures.
  • $150,000 to under $300,000: Compiled financial statements.
  • $300,000 to under $500,000: Reviewed financial statements.
  • $500,000 or more (or 1,000+ parcels): Audited financial statements.

Notice, hearing and deadlines

The text establishes strict timelines for meeting notices and record requests:

• Board Meetings: Notice must identify agenda items and be posted conspicuously in the community at least 48 hours in advance (except in emergencies), or mailed/delivered 7 days in advance.
• Special Assessments & Parcel Use Rules: Notice of meetings where special assessments or parcel use rules will be considered must be delivered/mailed/transmitted and posted at least 14 days before the meeting.
• Member Petitions: If 20 percent of total voting interests petition the board to address an item, the board must place it on an agenda within 60 days of receipt and provide 14 days' notice.
• Record Access: Records must be provided within 10 business days of receiving a written request. Failure to provide access within 10 business days after a request sent by certified mail creates a rebuttable presumption of willful failure. Minimum damages for willful denial are $50 per calendar day up to 10 days, starting on the 11th business day after receipt.

Practical checklist for homeowners

• Read your governing documents and any later amendments to understand community-specific rules.
• Keep written copies of all notices, emails, and correspondence sent to or received from the association.
• Submit official record inspection requests in writing via certified mail with return receipt requested.
• Use portable devices like smartphones to scan or take photographs of official records during inspections at no fee.
• Check the official text of Florida Statute 720.303 for updates.