How to Fire Your HOA Management Company: Florida 2026

Florida boards fire management companies more often than the public reporting suggests, and after HB 1203 and HB 913 the legal terrain is sharper in both directions — boards have stronger statutory tools, and managers have steeper criminal exposure for stalling records turnover. The Hammocks Community Association fraud case in West Kendall, the C and M Property Management indictment in Stuart, the Avant-Garde Property Management embezzlement case in Martin County, and the Stonebridge Place situation in Orlando all hit the public record in the last three years. They are why the statute book changed. They are also why a Florida board considering a management-company change in 2026 needs to run the process with discipline rather than improvisation.

This guide walks the operational and legal mechanics of terminating a Florida HOA or condo association management contract — the pre-termination audit, the statutory framework, the notice and records-turnover playbook, the 30-60-90 day transition, the replacement decision, and the real cases that show what works and what fails. Pair it with our HOA management company cost guide for the cost analysis, our can a Florida HOA be self-managed guide for the alternative path, and our 2027 budget guide for the financial-planning context.

This article is general information for Florida HOA and condo boards, not legal advice. Florida community-association statutes are amended frequently — verify any specific subsection at flsenate.gov before relying on it. The cases discussed are matters of public record but every termination has facts and contract terms unique to the association. Consult a licensed Florida community-association attorney before issuing a termination notice.

Why boards fire management companies in Florida

The Florida community-association industry does not publish reliable statistics on management-company turnover, but the documented reasons in the cases that have surfaced fall into a small set of categories.

• Outright fraud or embezzlement — the catalyst category. Bookkeepers writing checks to themselves, owners or principals diverting reserves to personal accounts, board members and managers running shell-vendor invoice schemes
• Records refusal or destruction — central to the Hammocks case and now criminalized by HB 1203
• Vendor kickbacks or undisclosed conflicts — bogus contractors paid for no work with kickbacks to insiders. HB 1203 made kickbacks a third-degree felony
• Inability to handle the new statutory load — milestone inspections under FS 553.899, the SIRS regime under FS 718.112(2)(g), the HB 1021 website mandate for condos with 25 or more units, the 36-month insurance appraisal rule. Smaller firms equipped for the pre-Surfside era cannot navigate the post-Surfside compliance stack
• Service and communication failures — Community Associations Institute's 2024 homeowner satisfaction survey reported only about 74 percent of residents say the manager provides value
• Cost or fee disputes — including disputes over scope creep beyond the contracted services and over auto-renewal fee increases
• Ownership changes in the management firm — sales, mergers, and rebrands often degrade service in the first year

The legislative response has been substantial. HB 1203 (2024) criminalized records destruction and director kickbacks, lowered the HOA records-website threshold to 100 parcels, and tightened CAM continuing-education obligations specifically around records and accounting. HB 1021 (2024) required condo management contracts to include a 12-point professional-standards disclosure (with voidability if missing), expanded the records definition, and codified the 20-business-day records-turnover clock. HB 913 (2025) added director affidavits acknowledging receipt of the SIRS and the annual financial report, and broadened CAM conflict-of-interest disclosure obligations.

The legal framework

Five Florida statutes govern almost every termination decision a board makes.

FS 468.4334 — CAM fiduciary duty and the records-turnover clock

The CAM fiduciary statute requires the manager and management firm to act loyally, skillfully, diligently, honestly, and in good faith, with full disclosure to the association, and to account for all funds. Subsection (3) imposes the records-turnover obligation: all official records of the association must be returned within 20 business days of termination of the contract or a written request, whichever comes first. Failure creates a rebuttable presumption of willful non-compliance and triggers a statutory penalty of $1,000 per day for up to 10 business days — a $10,000 cap — beginning on the 21st business day. License suspension follows.

FS 718.3025 — condo management contract requirements

Condo management contracts are unenforceable unless in writing and containing specific provisions: scope of services, costs reimbursable by the association, frequency of service, minimum personnel, and disclosure of any developer or board-member financial interest in the contracting party. Critically, services or obligations not stated on the face of the contract are unenforceable. If the manager is invoicing for items not contracted for, those charges are unenforceable.

HB 1021 added a key provision for board leverage: condo management contracts must include a statement in 12-point font affirming compliance with Chapter 468 professional standards. If the disclosure is missing, the contract is voidable and the association may terminate by written notice without penalty.

FS 720.3055 — HOA contracts and the powerful member-cancellation right

The HOA contract statute requires written contracts for any agreement not fully performed within one year and competitive bidding for contracts exceeding 10 percent of total annual budget (with carve-outs for CAM services, attorneys, accountants, and emergencies). The provision boards rarely use but should know about is FS 720.3055(2)(c): any member may move to bring a contract to a vote of the membership, and a majority of members present may cancel it. When members cancel a contract this way, the association is liable only for the reasonable value of goods and services rendered up to the cancellation — not for any termination fee, liquidated damages, or penalty. This is a backdoor escape valve when the contract has a punitive liquidated-damages clause that the board cannot avoid through its own action.

HB 1203 (2024) — criminal penalties for records misconduct

HB 1203 made knowing destruction or defacement of association accounting records a first-degree misdemeanor, and willful refusal to release association records a third-degree felony. Director kickbacks are now a third-degree felony as well. HOAs must produce subpoenaed records within 5 business days. Directors charged with theft, embezzlement, ballot forgery, records destruction, obstruction, or fraudulent voting must be immediately removed from the board. Conflict-of-interest contracts require two-thirds board approval and must be in the official records.

HB 1021 (2024) — condo records and management disclosure

HB 1021 codified the 20-business-day CAM records-turnover clock, expanded the records definition to include invoices, transaction receipts, deposit slips, and building permits, and required associations to maintain records "in an organized manner that facilitates inspection." If records are lost or destroyed, the association has an affirmative obligation to make a good-faith recovery effort. The 12-point professional-standards contract disclosure is the contract-voidability hook described above.

The pre-termination audit

Do this work quietly, before signaling intent to the management company. The leverage in a termination is almost always in the contract you signed, not in the statutes alone.

• Pull the executed contract, not the marketing summary. Identify term length, auto-renewal ("evergreen") clause and opt-out window, with-cause vs without-cause termination provisions, notice period, liquidated damages, records-transfer fee clauses, transition labor billed at hourly rate, and whether the contract names the firm or a specific CAM individually
• Check for the HB 1021 disclosure. Florida condo management contracts must include the 12-point professional-standards statement. If it is missing, the contract is voidable and the association may terminate without penalty. This is the most powerful single fact a Florida condo board can find in its contract
• Verify CAM and firm licenses at MyFloridaLicense.com. Confirm both the individual CAM and the firm license are active. Note any disciplinary history. Search the DBPR Disciplinary Orders database for prior actions
• Quantify switching cost — any contractual records-transfer fee, transition labor, software changeover, bank transition, possible overlap month with the new manager, attorney fees for contract review
• Confirm bank accounts are titled in the association's name, not the management firm's. If they are not, that is itself a fiduciary problem and a top-priority fix regardless of whether you terminate
• Document grievances contemporaneously with dates, dollar amounts, missed deadlines, specific emails. This becomes the rationale recorded in board meeting minutes and the foundation for any later dispute over fees or damages
• Inventory records. Make a list of records the association already physically or electronically possesses versus records the management firm is holding. Anything you do not have a copy of is a potential hostage during transition
• Engage HOA counsel for a 30-minute contract review before noticing termination. The cost saves five-figure mistakes around auto-renewal windows and liquidated damages

The decision: where do you go next

Before issuing notice, the board should have already chosen the destination, not just the exit. Three live options.

Florida law does not require a management company at any size — it is an operational decision, not a statutory one. Pair the decision framework with our can a Florida HOA be self-managed guide and our how to manage a small HOA guide.

Termination notice mechanics

Termination of a management contract is almost always a board action, not a member vote, unless the governing documents specify otherwise.

Board meeting

• Notice the meeting properly — HOA: 48 hours posted under FS 720.303(2); condo: 48 hours posted under FS 718.112(2)(c). Treat termination as a substantive matter and post with the maximum reasonable lead time
• Owners have the right to speak on agenda items
• Use specific motion language: "Motion to terminate the management agreement between [Association] and [Firm] dated [date], effective [date], pursuant to Section [X] of that agreement, and to authorize the President and Secretary to execute and serve written notice of termination by certified mail, return receipt requested, and to take all actions necessary to effectuate transition."
• Record the rationale in the minutes — specific, factual, dated. Protects directors under the business-judgment rule and creates the record if the firm later sues for wrongful termination

The notice letter

• Written, signed by an authorized officer, sent by certified mail return receipt requested (the most common contractual requirement)
• Send to the firm AND copy the assigned CAM individually if named in the contract
• Verify the contract's notice address — sending to the wrong address is the most common procedural defect
• Send a parallel email to create a second timestamp
• Content includes: contract identification (date and parties), section being invoked, termination effective date, records-turnover demand with itemized list and 20-business-day deadline, final invoice reconciliation request, bank-access termination instructions, standstill on new contracts ("Effective immediately, [Firm] is not authorized to bind the Association to any new contract or contract amendment without prior written board approval"), designated single point of contact for the transition
• Document delivery: keep the certified mail receipt and signed return card; print the email with full headers; log delivery in board records

The 30-60-90 day transition

This is where boards lose control. Run it on a written checklist with weekly status calls.

The 90-day transition workflow. Click to zoom.

Days 0-7 — notice and immediate priorities

• Termination notice sent by certified mail; records-turnover demand sent the same day to start the 20-business-day clock
• Bank visit to add new authorized signers BEFORE removing old ones
• Notify lockbox/payment processor; assess re-routing timing for assessment payments
• Insurance broker notification — master policy stays in force without lapse; certificate-holder address updated
• Owner pre-decision and post-decision communication sequence begins

Days 7-30 — records and vendor handoff

• Records turnover begins (20 business days = roughly 28 calendar days). Track every document delivered against the demand list
• Identify which vendor contracts are in the association's name vs the management company's name. Contracts in the firm's name (especially landscaping, janitorial, sometimes onsite staff) may not transfer — re-paper proactively
• Notify every vendor in writing of the new payable address, work-order workflow, emergency contact, and approval thresholds
• Watch for early-termination fees triggered by the management change in bulk-buy or "preferred vendor" arrangements
• Onsite staff status review — are they W-2 of the management firm or W-2 of the association? Plan replacement, or negotiate direct hire

Days 30-60 — operations transition

• New manager (if hired) begins onboarding with weekly status calls; named single point of contact on each side
• Software and portal handoff — owner accounts, owner data, work orders, document library
• Estoppel certificate workflow — agree in writing who is responsible for issuing pending estoppels and refunding fees if a closing falls through
• DBPR / Sunbiz registered-agent updates if applicable
• Owner roster cross-check between old and new systems

Days 60-90 — final close

• Final fee reconciliation with outgoing firm (prorated through effective date, any unbilled reimbursables)
• Refund of any security deposit or prepayment
• Final inspection of physical premises and inventory of association property
• Mutual sign-off and release language ONLY after records are confirmed delivered, not before
• Owner update — what's working, where the gaps are, contacts

The records-turnover playbook

Records turnover is where most management terminations succeed or fail. The leverage Florida law gives boards is real but only if invoked correctly.

The four-layer penalty stack a non-cooperating management firm faces. Click to zoom.

What constitutes records (comprehensive list)

• Financial: general ledger, balance sheets, income statements, bank statements, reconciliations, cancelled checks, deposit slips, transaction receipts (HB 1021 expanded the definition)
• Contracts: all current and historical vendor agreements, insurance policies, professional services agreements
• Owner data: roster, contact information, ledgers, payment history, violations, ARC requests, transfer and estoppel files
• Vendor data: invoices, work orders, certificates of insurance, building permits, warranties
• Governance: declaration, articles, bylaws, rules, amendments, all board and member meeting minutes, election records, ballots and proxies, written communications about association business
• Operational: violation files, ARC files, maintenance logs, key and access codes, vendor login credentials

The penalty stack if records are withheld

• CAM-level (FS 468.4334): $1,000 per day for up to 10 business days ($10,000 cap) starting on the 21st business day. License suspension
• Association-level (HB 1203, FS 720.303): Director knowingly, willfully, or repeatedly violating records access = second-degree misdemeanor. Willful refusal to release association records = third-degree felony
• Civil action: damages, attorney's fees, injunctive relief
• DBPR complaint at MyFloridaLicense.com triggering investigation, separate from civil action

Some Florida management contracts attempt to charge $5,000 to $25,000 "transition" or "records-transfer" fees on exit. Florida statutes do not authorize a management firm to charge the association for records the association already owns under FS 718.111(12) and FS 720.303(5). Boards should refuse, file a DBPR complaint if charged, document everything, and let counsel respond.

The leading 2024 records-access ruling is Pecchia v. Wayside Estates HOA, 388 So.3d 1136 (Fla. 5th DCA 2024), in which two owners of a self-managed HOA successfully sued for an injunction after the association stalled records production. The court emphasized that failure to promptly produce official records triggers fines and liability. The case is now cited alongside HB 1203 as the standard.

Replacement onboarding

If hiring a new firm, run an RFP. Florida statutory bidding thresholds for the association's other contracts (5 percent of annual budget for condos, 10 percent for HOAs) carve out CAM services, but the three-bid floor is professional standard and produces real price discipline.

RFP contents

• Community profile — units, amenities, budget, employees, age, governing documents summary
• Scope — full-service vs financial-only, deliverables and reporting cadence
• Staffing — named CAM, hours, after-hours coverage, on-site staffing if relevant
• Technology stack required — owner portal, accounting platform, work-order system
• Transition support timeline
• References — three Florida associations of comparable size and geography, clients for at least 24 months, direct phone numbers
• E&O coverage — minimum $5 million
• Conflicts disclosure — any ownership or contingent-commission relationships with vendors or carriers
• Service-level agreements — binders, COIs, claim acknowledgment timing
• Compensation transparency — base monthly fee, per-unit charges, ancillary fees (coupon books, statements, portal, estoppels, special meetings, project management), initiation and exit fees, after-hours rates

Negotiate the new contract differently this time

Fix the clauses you wished you had this time:

• Termination without cause with 60-day notice (or 30-day for clear flexibility)
• No auto-renewal, or short auto-renewal with 90-day opt-out window
• No records-transfer fee at exit — written into the contract
• Bank accounts in association's name only; firm has signature authority but not ownership
• Vendor contracts in association's name only (not in firm's name)
• Onsite employees of association (if any), not the management firm
• HB 1021 12-point professional-standards disclosure included verbatim
• Conflict-of-interest disclosure obligations spelled out in writing
• Records-turnover obligation referenced and confirmed within 20 business days at exit
• Liquidated damages clause limited or removed

Interview the proposed CAM, not just the firm — that individual is who residents will deal with. Verify the CAM's individual license at MyFloridaLicense.com and pull the disciplinary history.

Common pitfalls

Real Florida cases

Four named cases from the 2022-2026 period demonstrate why Florida law tightened the records and conflict-of-interest framework, and what boards should learn from each.

The Hammocks Community Association — West Kendall

Florida's largest HOA fraud case and the catalyst for HB 1203. The Hammocks is a 6,500+ unit community in West Kendall with roughly 18,000 residents. In November 2022, five people including former president Marglli Gallego, her husband Jose Antonio Gonzalez, and three others were arrested and charged with diverting at least $2 million (later forensic accounting alleged over $4 million) through fake or no-work vendors. Same week, a Miami-Dade judge placed the HOA in receivership under retired judge David Gersten.

By 2023, the receiver had identified 55 bank accounts and credit cards and pegged total fraud at over $3 million. The Hammocks won a $2 million settlement against ex-leaders. In September 2024 Gersten transitioned from receiver to long-term monitor of all future elections. By 2024, more than $6 million had been recovered through settlements. On February 1, 2025, the receiver-supervised board selected Affinity Management Services as the new property manager, replacing the receiver-run setup. Eighth and additional arrests continued into late 2024.

The structural lesson: a clean board election paired with a reputable firm and an outside watchdog during the first year produced a workable recovery from a near-catastrophic fraud. The legal lesson is that records opacity is the leading indicator of fraud — every named case in this period started with blocked records before money disappeared.

C and M Property Management — Stuart and Palm City

In July 2024, owner Scott Michael Brechbill was charged with first-degree grand theft (over $100,000), second-degree grand theft, organized fraud (over $50,000), and obtaining property under $50,000. He allegedly transferred $820,777.51 from the Quail Meadow HOA account to C and M's own account, plus additional funds from Starling Court HOA — total over $800,000 across the two HOAs. Bond was set at $2.1 million. The investigation began in June 2023 after a Starling Court board member walked into the Martin County Sheriff's Office.

The lesson: co-mingled accounts are the whole scheme. The Brechbill case rested on funds flowing into the management firm's operating account. Modern best practice — and post-2024 legal expectation — is HOA money in HOA-titled accounts the board can audit independently of the manager.

Avant-Garde Property Management — Martin County

In April 2026, bookkeeper Alexandra Delacaridad Gonzalez surrendered to Martin County authorities to face a sweeping indictment including two counts of fraud over $50,000, two counts of grand theft, 61 counts of uttering false instruments, and 59 counts of embezzlement — well over 120 felony charges total. She allegedly wrote checks to herself, fabricated invoices, forged signatures, and falsified ledger entries at the Whitemarsh Reserve and Dunes of Hutchinson Island associations. Funds were traced to Disney World, New York City trips, plastic surgery, and shopping.

The lesson: inside-firm bookkeepers can cause as much damage as principals. License-and-bonding due diligence on the firm is necessary but not sufficient — boards need independent visibility into the bank ledger.

Stonebridge Place — Orlando

Former HOA president Tara Howie attempted to cash a $743,000 cashier's check of HOA funds. The bank stopped the transaction and opened a fraud case. Howie also charged personal items — phone bill, Macy's, Amazon — to HOA accounts. Critically, the previous management company (BlueSky) flagged the activity to Orlando police. The outgoing management firm was the whistleblower. Stonebridge then went through four management companies in nine months, paying approximately $18,000 in early-termination fees along the way. Stonebridge sued Howie, alleging she moved $750,000 of reserves into an account only she could access.

The lesson: the outgoing firm is often the best fraud detector if the termination is handled professionally. A bridge-burning termination loses that visibility. The Stonebridge churn — four firms in nine months — also shows that repeated quick-fire terminations are themselves a red flag and an opening for insider fraud.

For the broader operational view of association financial discipline, pair this with our HOA financial evaluation guide, our HOA balance sheet guide, our how to report HOA fraud guide, and our Florida HOA document request rights guide. Nolo's HOA legal encyclopedia, the Florida Bar consumer pamphlet, Becker, Kaye Bender Rembaum, and KSN Law all publish ongoing Florida community-association legal commentary. Every meaningful termination decision should run past the association's licensed Florida community-association attorney before the board votes.

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Property Exemption Team

Researched and fact-checked using Florida Statutes Chapters 468, 617, 718, and 720, HB 913 (2025), HB 1021 (2024), HB 1203 (2024), the Florida Department of Business and Professional Regulation Community Association Manager licensing portal, Pecchia v. Wayside Estates HOA (Fla. 5th DCA 2024), and ongoing commentary from Becker, Kaye Bender Rembaum, KSN Law, FCAP, and CAI. Case-study facts on the Hammocks, C and M Property Management, Avant-Garde Property Management, and Stonebridge Place are drawn from public arrest records, court filings, and contemporaneous reporting by The Real Deal, CBS News Miami, WSVN, Local 10, WLRN, WPTV, WSVN, WQCS, Fox 35 Orlando, and Yahoo News. Statutory citations verified against the current Florida Senate text. About Mosaic