HOA Bills Move to Governor

As expected, with less than 24 hours left in the legislative session, the remainder of the HOA bills that were being debated all passed out of the legislature and moved on to the Governor and are all expected to be signed.

The bills include :

HB 1134: Expansion of the duties of the HOA Information Office.  The immediate impact of this bill is to clarify that all Common Interest Communities, whether pre or post CCIOA, are required to register with the state.  The long term implications of the bill will be determined after the HOA Information Office completes its study of surrounding states to determine what power and authority the office should have. The report is due by year end.  Expect more on this next year.

HB 1276: The HOA Debt Collection Bill.   This bill revises how an association may collect assessments, requires certain disclosures to be made when sending out delinquency letters, and mandates that prior to pursuing a foreclosure action the board of directors must discuss and approve the foreclosure on an individual basis. This bill will not have a major impact on a large number of associations as many associations are already acting in accordance with a considerable part of this bill.   This bill also applies to purchasers of Association liens.  When signed by the governor, HB1276 will become effective January 1, 2014.

HB 1277: Manager Licensing:  This is the long anticipated licensing requirement bill, which has been approved by both the senate and the house of representatives. The bill requires community association managers to submit to background checks, finger printing, and to pass a licensure test  The bill also grants unto the Director of the Division of Real Estate wide rule-making authority as to the test, what passing scores look like and disciplinary measures.

SB 183: Xeriscape Bill: Finally, as we discussed last week, SB 183 will set limitations on an association’s abilities to deal with landscaping within the community. As the drought shows no signs of letting up, associations should be prepared to address requests for xeriscaping within the community.