Florida HOA Transition of Control: Fla. Stat. 720.307

What the law covers

This law covers transition of association control in a community for homeowners' associations. Members other than the developer are entitled to elect at least a majority of the board of directors when the earlier of several events occurs. Members other than the developer are also entitled to elect at least one board member if 50 percent of the parcels in all phases of the community have been conveyed to them. The developer is entitled to elect at least one board member as long as the developer holds at least 5 percent of the parcels for sale in the ordinary course of business. The association's governing documents and later amendments may also apply.

Key requirements and limits

Majority election triggers include:

• Three months after 90 percent of the parcels in all phases of the community that will ultimately be operated by the homeowners' association have been conveyed to members other than the developer;
• Another percentage, date, or event set forth in the governing documents to comply with a governmentally chartered entity regarding mortgage financing;
• Developer abandonment or desertion of amenities or infrastructure. There is a rebuttable presumption of abandonment if the developer has unpaid assessments or guaranteed amounts under s. 720.308 for more than 2 years;
• Developer filing a petition under chapter 7 of the federal Bankruptcy Code;
• Developer losing title through foreclosure or deed in lieu of foreclosure, unless the successor owner accepted an assignment of developer rights and responsibilities;
• A receiver for the developer being appointed and not discharged within 30 days, unless the court determines within 30 days that transfer would be detrimental.

The term members other than the developer does not include builders, contractors, or others who purchase a parcel to construct improvements for resale.

After relinquishing control, the developer may vote developer-owned voting interests like any other member, except to reacquire control or select a majority of the board.

This section does not apply to associations in existence on the effective date of the act, or to communities in an effective development-of-regional-impact development order as of that date.

Notice, hearing and deadlines

Deadlines in the text:

• The developer must deliver documents at the developer's expense within no more than 90 days when members are entitled to elect at least a majority of the board.
• A receiver for the developer must not be discharged within 30 days after appointment for the control transfer to occur, unless the court determines within 30 days that transfer would be detrimental.
• The rebuttable presumption of abandonment applies after more than 2 years of unpaid assessments or guaranteed amounts under s. 720.308.

The text does not describe a notice or hearing process.

Practical checklist for homeowners

Neutral steps:

• Read your governing documents to check for a different percentage, date, or event for transition.
• Check the official statute text for updates.
• Keep copies of notices and records related to parcel conveyances and developer status.
• Verify whether the developer still holds at least 5 percent of parcels for sale.
• Confirm whether any listed trigger event has occurred.