What Do Florida HOA Directors Need to Know About Construction Defect Claims?

A Complete Legal Guide for Community Associations

Managing a Florida homeowners association (HOA) carries significant fiduciary responsibilities, especially when construction defects threaten your community’s property values, safety, and financial stability. When multiple construction defects affect shared infrastructure, common areas, or multiple residential units simultaneously, HOA directors face complex legal challenges that demand immediate, strategic action.

At Williams Law Association, P.A., our Tampa-based construction defect attorneys have protected Florida HOAs for nearly 30 years, recovering over $300 million for property owners throughout Tampa Bay, Hillsborough County, Pinellas County, and across Florida. This comprehensive guide explains everything HOA board members need to know about identifying, documenting, and pursuing legal claims for multiple construction defects in Florida community associations.

Why Multiple Defects Increase Complexity

When a community experiences more than one type of construction defect, several challenges arise:

• Overlapping repair costs can strain HOA budgets and reserves.
• Disputes with multiple parties, including builders, subcontractors, and insurers, may complicate claims.
• Homeowner dissatisfaction can lead to lawsuits against the HOA if directors fail to act responsibly.
• Extended timelines for repairs create inconvenience for residents and damage to the HOA’s reputation.

This complexity makes it critical for HOAs to retain experienced legal counsel to coordinate claims, manage experts, and pursue maximum recovery.

The HOA Board’s Legal Duties Regarding Construction Defects in Florida

Fiduciary Obligations Under Florida Statutes

Florida HOA directors have legally enforceable fiduciary duties to the association and its members under Florida Statutes Chapter 720 (Homeowners Associations) and Chapter 718 (Condominiums).

When construction defects threaten community property, these duties include:

1. Duty to Maintain Common Elements

Florida Statutes require HOAs to maintain, repair, and replace common elements and shared building components. Failing to address known construction defects violates this statutory duty and exposes directors to personal liability.

2. Duty to Exercise Reasonable Care

Board members must exercise the care an ordinarily prudent person would exercise in similar circumstances.

This includes:

• Investigating complaints and warning signs of construction defects
• Retaining qualified professionals to assess potential defects
• Acting promptly to prevent deterioration and increased damage
• Pursuing all available remedies against the responsible parties

3. Duty to Preserve Association Assets

Directors must protect the association’s legal rights, including construction defect claims against builders, developers, contractors, and their insurers. Failing to preserve viable construction defect claims may expose the association to financial harm and could create fiduciary concerns, particularly if directors ignore known defects or statutory deadlines.

4. Duty to Act in Good Faith

Board decisions regarding construction defects must prioritize community interests over personal considerations, builder relationships, or other conflicts of interest.

Personal Liability Risks for HOA Directors

Florida law provides qualified immunity for volunteer HOA directors acting in good faith within the scope of their duties. However, directors may face personal liability for:

• Gross negligence in addressing construction defects
• Willful misconduct or intentional failure to act
• Allowing construction defect claims to become time-barred
• Self-dealing or conflicts of interest
• Failing to maintain adequate insurance coverage

Protection Strategy: Early consultation with experienced construction defect attorneys protects both the HOA and individual directors from liability while preserving all legal remedies.

Statutory Pre-Suit Requirements for HOA Construction Defect Claims

Florida Statutes Chapter 558 imposes mandatory pre-suit notice requirements before filing construction defect litigation. Compliance with these procedures is a condition precedent to filing a lawsuit.

Pre-Suit Notice Obligations

Before a lawsuit, the HOA must serve written notice describing each alleged defect in reasonable detail. Key requirements include:

• 60-day pre-suit notice for claimants other than large associations
• 120-day pre-suit notice for associations representing 20 or more parcels
• Notice must identify defect locations sufficiently for inspection
• Notice must state the known or reasonably suspected loss

Failure to comply with Chapter 558 exposes the association to stay orders or delays in litigation.

Florida’s Construction Defect Laws: Critical Deadlines HOA Directors Cannot Miss

CRITICAL UPDATE (2023): Florida’s construction defect statutes of limitations and repose were significantly amended in 2023, shortening time limits and changing triggering events. HOA directors must understand current law to avoid losing valuable claims.

Four-Year Statute of Limitations

Florida Statute § 95.11(3)(b) establishes a four-year statute of limitations for construction defect claims.

The four-year period begins running from:

• The date the authority having jurisdiction issues a temporary certificate of occupancy (TCO)
• The date a certificate of occupancy (CO) is issued
• The date a certificate of completion is issued
• The date of abandonment of construction if not completed

Latent Defect Exception: For hidden defects not discoverable through reasonable inspection, the four-year period runs from when the defect was discovered or should have been discovered with due diligence, but this discovery rule is subject to the absolute seven-year statute of repose discussed below.

Seven-Year Statute of Repose (Updated 2023)

IMPORTANT CHANGE: Effective April 13, 2023, Florida’s statute of repose for construction defects was reduced from 10 years to seven years through Senate Bill 360.

The seven-year statute of repose creates an absolute deadline seven years from the earliest triggering event (TCO, CO, certificate of completion, or abandonment) after which no construction defect claims can be filed, regardless of when defects were discovered.

Example Timeline:

• Certificate of Occupancy issued: January 1, 2020
• Statute of repose expires: January 1, 2027
• Even if HOA discovers major structural defects on December 1, 2026, the lawsuit must be filed before January 1, 2027

Multi-Building Developments: For phased developments, the statutes run separately for each building based on that building’s individual TCO, CO, or certificate of completion date.

Why This Matters for HOAs: Many construction defects, particularly water intrusion, mold, and structural deterioration, don’t become apparent for years. The seven-year repose period means HOAs have less time to discover and pursue defect claims than under prior law.

Why Multiple Construction Defects Create Unique Challenges for Florida HOAs

Compounding Financial Burdens

When HOA communities face multiple simultaneous construction defects, financial pressures multiply:

• Reserve Fund Depletion: Emergency repairs for multiple defects can exhaust reserves intended for normal maintenance and capital improvements.
• Special Assessment Requirements: Florida Statutes Chapter 720.303 governs special assessments. Multiple defects requiring immediate attention may force boards to impose substantial special assessments, creating hardship for unit owners and potential collection issues.
• Insurance Deductibles: Each defect category may trigger separate deductibles under the HOA’s property insurance policy, significantly increasing out-of-pocket costs.
• Temporary Repair Costs: While pursuing construction defect claims, HOAs often must make temporary repairs to prevent further damage and maintain habitability costs that may not be fully recoverable.

Multi-Party Liability Disputes

Multiple construction defects typically involve multiple potentially responsible parties:

• Developers: Overall liability for development design and contractor selection
• General contractors: Direct responsibility for construction means and methods
• Subcontractors: Specific trade responsibility (plumbing, electrical, roofing, etc.)
• Material suppliers: Defective products or materials
• Architects and engineers: Design defects and inadequate specifications
• Previous HOA boards: Failure to maintain or address known issues
• Litigation Complexity: Multi-party construction defect litigation involves extensive discovery, expert testimony across multiple disciplines, crossclaims and third-party complaints, and complex liability apportionment, all of which require experienced legal counsel to navigate effectively.

Insurance Coverage Disputes

HOA construction defect claims often trigger multiple insurance coverage issues:

• Property Insurance: May cover resulting damage, but typically excludes the cost to repair the defect itself
• General Liability Insurance: Builders’ and contractors’ CGL policies may provide coverage, but insurers frequently dispute whether defects constitute “property damage” under policy language
• Directors and Officers Insurance: May protect board members from liability for reasonable decisions regarding defect claims
• Professional Liability Insurance: Covers architects and engineers for design defects
• Multiple Denials: HOAs pursuing defect claims often face simultaneous coverage denials from multiple insurers, each disclaiming responsibility.

Common Mistakes Florida HOA Boards Make With Construction Defect Claims

Mistake #1: Waiting Too Long to Investigate or Take Action

The Problem: HOA boards often delay addressing construction defects, hoping problems will resolve or improve, or deferring decisions to avoid controversy.

The Consequences:

• Defects worsen, increasing repair costs exponentially
• Statute of limitations or repose may expire, barring all claims
• Evidence deteriorates or disappears
• Responsible parties become insolvent or unreachable

The Solution: Investigate complaints immediately and engage professionals at the first sign of systematic defects.

Mistake #2: Making Repairs Before Proper Documentation

The Problem: Boards rush to make repairs without adequately documenting defects or consulting legal counsel.

The Consequences:

• Premature repairs without documentation can compromise evidence and make defect claims more difficult to prove
• Potential Chapter 558 violations if repairs occur before notice
• Insurance coverage disputes over whether damage was properly documented
• Difficulty establishing original defect conditions vs. repair quality

The Solution: Document thoroughly before any repairs. Consult construction defect attorneys before authorizing significant repair work.

Mistake #3: Accepting Builder’s First Settlement Offer

The Problem: Developers often make initial offers that seem reasonable but fail to address the full scope of damages.

The Consequences:

• Underestimation of total repair costs
• Failure to identify hidden or consequential damages
• Release of claims before discovering additional defects
• Inadequate compensation leaves the HOA financially exposed

The Solution: Have independent experts evaluate all defects and prepare comprehensive damage assessments before considering settlement.

Mistake #4: Failing to Preserve All Legal Claims

The Problem: Boards accept partial repairs or settlements without ensuring that settlement agreements preserve claims for undiscovered defects.

The Consequences:

• Broad releases that waive claims for later-discovered defects
• Loss of insurance subrogation rights
• Compromised ability to pursue additional responsible parties

The Solution: Ensure all settlement agreements are reviewed by experienced construction defect counsel and narrowly tailored to resolve issues only.

Mistake #5: Not Consulting Legal Counsel Early

The Problem: Many boards attempt to handle construction defect issues without legal representation until disputes escalate.

The Consequences:

• Missed statutory deadlines
• Procedural mistakes compromising claims
• Inadequate evidence preservation
• Acceptance of insufficient settlements
• Personal liability exposure for directors

The Solution: Consult construction defect attorneys immediately when systematic defects are discovered.

Why HOAs Should Work with Williams Law Association, P.A.

At Williams Law Association, P.A., we have extensive experience representing Florida HOAs in complex construction defect claims. We understand the unique challenges directors face when multiple defects impact an entire community.

Our services include:

• Conducting thorough policy and contract reviews.
• Coordinating with engineering and construction experts to document defects.
• Handling Chapter 558 pre-suit procedures.
• Negotiating with builders, contractors, and insurers.
• Pursuing litigation when necessary to secure maximum compensation.

Our Commitment to Florida HOA Directors

We understand that serving as an HOA director is often a volunteer position with significant responsibilities. Our goal is to provide the legal expertise and support you need to fulfill your fiduciary duties while protecting your community’s interests and assets.

Protecting Your Community from Construction Defects

If your HOA community is experiencing construction defects, time is of the essence. Florida’s statutes of limitations can expire quickly, and delaying action can lead to worsening conditions and reduced recovery potential. Our expert Florida HOA construction defect attorneys are ready to evaluate your situation, explain your legal options, and develop comprehensive strategies to address construction defects while protecting your community’s interests and assets.

Contact Williams Law Association, P.A. today to schedule a consultation and learn how we can help your HOA community pursue justice and compensation for construction defects. Call us at (813) 288-4999 or toll-free at (800) 451-6786. We understand the complexities of community association law and construction defect litigation, and we’re committed to helping HOA directors fulfill their responsibilities while securing the best possible outcomes for their communities.