Drew Wilson
Lawmakers passed several bills related to homeowner and condo owner associations this year, but one 11th-hour change that didn’t make the cut is expected to make a return next year.
At issue are companies or individuals who contract with homeowner associations to advise on services such as broadband and cable TV, and then broker contracts with service providers.
While these companies claim they help HOA members get the best services for the lowest cost, some companies receive signing bonuses or other payments from telecom companies without disclosing it to the HOA. This blatant conflict of interest incentivizes such companies to steer clients toward a particular provider, regardless of its quality.
In Florida, there is particular concern that such deceptive sales tactics are preying on senior communities. Older Americans comprise the vast majority of scam victims and, in general, are less familiar with technology than younger cohorts.
Some unethical companies will pitch plans to senior communities and collect a large advisory fee, meanwhile, they are collecting recruitment bonuses for delivering the HOA’s business. Under current law, companies are not obligated to disclose any financial incentives they receive for recommending a particular service provider.
The practice has landed them on lawmakers’ radar.
Near the end of the 2024 Session, Sen. Jason Pizzo filed an amendment to HB 1021, a comprehensive HOA package, that would have required companies to disclose potential conflicts of interests. If they failed to do so, any contract signed with an HOA would be voided.
The amendment would also have made the practice a violation of the state’s Deceptive and Unfair Trade Practices law.
Pizzo’s amendment was withdrawn however after discussion because a late change would have required the House to act, jeopardizing the overarching bill.
But the substance of the amendment, which was intended to shut down these unscrupulous schemes by adding an additional layer of transparency in HOA contracts is expected to return, either as its own bill or as a component of an HOA package, in the 2025 Legislative Session.
