FLORIDA HB403: How the Bill Affects HOAS
What is Florida HB403?
Florida House Bill 403 allows home-based businesses to operate even in areas zoned for residential use. It does away with rules that limit an owner from running a business from home, such as how much square footage they can use, what products and services they can sell, and how many family members can work for the business. Filed in January of 2021, the bill was signed by Gov. Ron DeSantis in June 2021 and finally passed into law in July 2021.
Rep. Mike Giallombardo states that the bill's sponsor, HB403 serves "to keep Florida at the forefront of freedom." It would essentially display that the Sunshine State is open for all types of business, even home-based ones.
The Flolrida HB 403 Raises Some Concerns
While operating a home-based business in Florida isn't a problem, the bill introduces a few key issues. Homeowners associations, in particular, are worried that the legislation might alter the character of the communities. Residents have also started to raise concerns about safety and security. The bill currently does not restrict the kinds of businesses owners can have. If the business follows the law and secures the proper permits, cities are essentially backed into a corner and forced to let them operate.
Homeowner's Associations and Rules on Commercial Use
It is not uncommon for homeowners associations to have specific bans or restrictions on using a residential property for commercial purposes. Many associations outright prohibit residents from operating a business from home because it creates safety and security issues.
A private subdivision may not want outside customers in and out of the community. Having strangers inside a gated HOA might make residents feel unsafe. It's also impossible to screen all of them before they enter the neighborhood.
Operating a business also involves the possibility of several vehicles parked along the street. If a road blocks too many cars, emergency responders won't have a way to get through.
Finally, businesses need signs and all sorts of paraphernalia which can go against the association's architectural standards. Flyers, posters, and business cards may also litter the neighborhood. Beyond that, ad-painted vehicles are also an eyesore to the community.
How the Bill Affects HOAs
Homeowner's associations are understandably concerned about the aftermath of the bill passing into law. But, it is worth noting that the legislation does not supersede any current or future declaration of an HOA or condominium according to Chapter 718, Chapter 719, or Chapter 720, which means that if an association's statement prohibits homes used for commercial use, the HOA can uphold the restriction. The new law does not address an association's rules and regulations.
Suppose an HOA does not have language built into its declaration prohibiting home-based businesses. In that case, it likely can't stop owners if they have the proper licenses and permits, which poses a problem for neighborhoods that don't belong in associations, too, as they don't have the same restrictions that an HOA would generally have.
Fliorida HB403 Likely to Undergo Tweaks
It is currently unknown how many home-based businesses have sprouted since the passing of Florida HB403. But, it is clear that the new bill certainly has its downsides.
Rep. Michael Gottlieb, the chair of the local delegation of Broward senators and representatives, believes there is work left to do. Gottlieb has said that lawmakers still need to refine the legislation.
Broward Rep. Chip LaMarca also said that the bill might change the industries that it will allow operating in a residential area. Florida HB403 was crafted to protect professionals from being penalized for using their living room as a workspace. During the COVID-19 pandemic, working from home had become necessary. But, lawmakers likely did not expect it to spark such a massive response from local governments.
Seeking Legal Advice
Legislators passed Florida HB403 to encourage small businesses and aid the American dream. However, it also spawned unintentional consequences and understandable concerns. For now, local governments and homeowners associations should keep an eye out for any new developments.
Condominium Associates strives to provide up-to-date news on what is happening in Florida. Contact us if you have more questions!
Disclaimer: Condominium Associates does not offer or provide legal advice. If you need legal help, it is best to consult an attorney.
