Florida HB 803: Important Considerations for HOA and Construction Law

Effects of Florida HB 803 on HOA and Construction Law: Important Considerations for Contractors, Liability Insurers, and Community Associations

Florida’s House Bill 803 took effect on July 1, 2026, and while there has been much attention concerning the most visible aspects of House Bill 803 (especially the permit exemption for work valued at under $7,500), the change in the law could result in unintended consequences and net-negative compliance costs. Liability insurers of contractors and design professionals, litigants in state court defending against construction defect claims, and Home Owners’/Community Associations should take note of the potential increase in costs of compliance and defense.

HB 803 Background

In 1974, Florida law required all local governments to adopt and enforce ‘a minimum building code’ that would ensure that Florida’s minimum standards were met.^[i] A substantial overhaul of the existing framework was undertaken following Hurricane Andrew in 1992, when the Governor appointed a study commission to review the system of local codes and to make recommendations for modernizing the system.^[ii] The 1998 Legislature adopted the study’s recommendations for a single state building code and strengthened the role of the state over local government.^[iii] The 2000 Legislature authorized the implementation of the Florida Building Code, which is now in its Eighth Edition.^[iv] Modernly, the Florida Building Code must be uniformly enforced consistently across the state.^[v]

House Bill 803 was signed into law on May 7, 2026, and it represents several easily overlooked implications for homeowners’ association law and construction law. Under the new law, owners of single-family dwellings no longer need to obtain a permit when the work is valued at less than $7,500.^[vi] The bill also provides a shorter timeframe for a local government to approve, approve with conditions, or deny a building permit applicant.^[vii] Additionally, homeowners’ associations may not require that a building permit be issued as a prerequisite for approval by the board of construction of structures or improvements to one’s property.^[viii] The intended purpose of House Bill 803 was to provide a positive financial impact on the state, but there are some areas in which the bill may lead to greater costs of compliance and litigation in light of the changes.^[ix] Various committees in the Florida House of Representatives prepared analyses of the impact House Bill 803 might have on the residents of the State of Florida, but none of these reports appear to have examined any impact upon the growing influx of construction defect claims in state courts, and the impact upon Florida’s Homeowners’ Associations.

Work Valued at Under $7,500 No Longer Requires a Permit

The Legislature’s stated purpose of requiring building permits is to ensure that local governments have the power to inspect all buildings, structures, and facilities in protection of the public’s health, safety, and welfare.^[x] Every local government in Florida is required to enforce the Florida Building Code by the issuance of permits.^[xi] There are also longstanding defenses to construction defect claims, based upon the language of the Florida Statutes, which provide that:

if the person or party obtains the required building permits and any local government or public agency with authority to enforce the Florida Building Code approves the plans, if the construction project passes all required inspections under the code, and if there is no personal injury or damage to property other than the property that is the subject of the permits, plans, and inspections, this section does not apply unless the person or party knew or should have known that the material violation existed.^[xii]

This type of an affirmative defense is often pled by contractors in defense to claims of construction defect where the subject property passed all required inspections by local government, and a permit (and eventually a certificate of occupancy) was issued by the building department. This is also the basis for a similar defense, known as the Slavin Doctrine, which precludes liability for a contractor for personal injuries to third parties if the injuries were caused by patent defects and the owner has accepted the work.^[xiii] The Slavin Doctrine applies where the owner of property has approved the work, and accepted it, but the issuance of building permits and certificates of occupancy are often persuasive evidence that the owner was correct in doing so.

While House Bill 803 provides that qualifying work no longer requires a permit, there are still some significant limitations on that exemption, including that (1) projects may not be divided for the purpose of evading permitting requirements; (2) contractors performing qualifying work must file a notice that they plan to seek the exemption within 30 days with the local enforcement agency; (3) the exemption may not apply to certain specialty trades including electrical, plumbing, or structural work; and (4) local governments are not liable for work done pursuant to this provision.^[xiv] Even so, this exemption will still apply to several trades and scopes of work, including exterior doors and windows installation and exterior cladding, which have been the source of numerous construction defect claims in the State of Florida in recent years due to the possibility that these comparatively small assignments could have disproportionate consequences if they lead to water intrusion. This change in the law could make litigation and discovery more costly where a claimant cannot simply point to the fact that there has been no inspection or permit issued as evidence of defective construction.^[xv]

Several cases in Florida courts have hinged on whether or not a building permit was issued for certain work, and without the obvious binary of whether it had or hadn’t been issued (as a matter of public record). Expert witness evaluation, discovery, site inspections, and document production costs may increase as a result of there not having been a permit issued. While the exemption only applies to work under $7,500, this could still be implicated in larger construction where a sub-contractor is retained for a specific trade/scope of work. In any instance of work being performed under the exemption—whether part of a larger construction project or not—the contractor performing the work will have a more difficult time defending its work against allegations of construction defect when it cannot simply point to the fact that the building department inspected and issued a permit.

While the Legislature clearly intended to reduce costs associated with smaller construction projects, the change to lighten requirements in light of such a growing body of claims alleging construction defects, may potentially exacerbate the strain on Florida courts, and the costs of compliance. For contractors and their liability insurers; particularly of contractors that do specialty work such as window installation, stucco application, or framing; it is now more important than ever to strengthen quality control protocols and document retention practices. Contractors should not treat the lack of a permitting requirement as not requiring them to comply with the Florida Building Code, and Florida general contractors should consider their duties to supervise job sites as even more significant.

HOA Boards May No Longer Condition Approval of Construction or Renovation Upon Issuance of a Permit

As a prerequisite to construction of structures and renovations, many HOAs mandate that the owner present proof that the design plans and specifications have been approved by the local governance, as evidence that the planned project is sufficiently safe. This is mainly premised upon the fact that most HOA boards are not made up of trained architects or professional engineers, but of homeowner-volunteers. Rather than retaining a design professional to verify the safety of the project, many HOAs have used the inspection process with the local permitting requirements to form an opinion as to any health and safety concerns of the project.

House Bill 803 adds a provision to Chapter 720 of the Florida Statutes (governing homeowners’ associations) that precludes an HOA or architectural/construction planning committee from requiring a building permit to be issued in order for the association to approve the project—which is not limited to the $7,500 exemption above. This could potentially lead to a greater potential for exposure, and compliance costs, as the responsibility for inspecting and approving construction and renovation now falls completely on those entities. This would tend to make the HOA’s governing documents even more significant as it relates to their standards for inspections and expert review. In the event that another property owner is injured as a result of the construction or renovation, they may seek to find the association liable for approving the work. Additionally, this could present some of the same issues with the $7,500 exemption, above, where a contractor can no longer easily assert a defense that their work was approved by the HOA, when the HOA may not have undertaken the same kind of review as the local building authority would have. While theoretical, an owner alleging that construction on his property was defective may consider whether failure of the association to thoroughly and sufficiently review the plans and design specifications may also consider whether the association should share in some fault as to the damages.

In light of the changes to the law as it relates to HOAs, those entities should consider what steps could be taken to mitigate risk, if they were previously relying on the permit application process for approval of planned construction and renovations. This could mean appointing an architectural review committee, retaining outside experts, or consulting with the association’s attorney to see if the language of the governing documents sufficiently provide for the health and safety of members where such work is concerned. Because community associations can no longer lean on “show me the building permit” as a gatekeeping mechanism, it is now more important than ever to ensure that the governing documents are reviewed by an attorney experienced in construction.

Key Takeaways

HB 803 reduces friction for small jobs but raises accountability for owners, boards, and contractors. For HOA leaders, construction professionals, and their liability insurers, a short, disciplined update to policies and workflows now will save time and cost later.

Over the next quarter, prioritize three strategic moves: update HOA approval standards to rely on expert review rather than permits; implement a simple quality control and document-retention protocol for specialty trades; and calendar any required 30‑day notices when claiming an exemption. Treat compliance and supervision as litigation stakes, and with a measured approach, keep projects moving while managing the exposure created by HB 803.

Disclaimer: This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between Galloway and any recipient. Recipients should consult with counsel before taking any action based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions.

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