As a seasoned property manager, you will know that the world of HOAs and condos isn’t stationary and that the legal landscape is constantly changing. Being aware of new bills and adjusting how you operate accordingly is indispensable to keeping your community running smoothly.
Keep in mind that the legislation is state-specific; below we explore some of the most recent legislative changes impacting HOAs and condos across several key states, empowering you to take advantage of the new laws.
Florida’s (Bill 1203, 2024): Going Digital
Shout out to Florida for approving House Bill 1203, a law that envisions a world where HOA meetings are accessible via online platforms, documents are cloud-based and easily accessible, and ethical management practices are commonplace. Florida HOA and condo board members must complete continuing education annually (including financial literacy training) and are subject to immediate removal if involved in kickbacks—a third-degree felony. This all-encompassing bill represents a paradigm shift, emphasizing transparency and adherence to the highest standards, which could significantly alter the current landscape of homeowners’ association governance, where, unfortunately, corruption has often been present in HOAs across the state.
California (AB 648, 2023): Teleconferencing Revolution
This bill introduced online board meetings in California, significantly improving accessibility and flexibility for members who are far away or have busy schedules. However, ensuring that all directors and members have equal opportunities to participate in these meetings is crucial. This can be accomplished by providing clear and timely meeting notices, offering technical support to address potential issues, and ensuring that roll-call votes are conducted as a standard practice. These measures help to uphold fairness and inclusivity in the decision-making process,
North Carolina (HB 320, 2023): Strengthening Governance
This legislation aims to enhance HOA governance by clearly outlining board member responsibilities. Residents in North Carolina will now enjoy the advantages of having access to comprehensive annual budgets and financial statements. This transparency will enable them to make well-informed decisions with confidence. Furthermore, implementing measures to mitigate conflicts of interest will guarantee fair and transparent management practices.
Virginia (HB 1816, 2023): Empowering Residents
The recent legislation implemented in Virginia strongly emphasizes access to information and establishing a just conflict resolution process within HOAs. HB 1816 grants members access to association records, empowering them with comprehensive insights into community operations. The legislation also incorporates constraints on fines and detailed financial disclosures, aiming to cultivate trust between residents and the HOA.
Texas (HB 886, 2023): An Honest Chance
This bill amends Section 209.0094 of the Texas Property Code, imposing stricter regulations on property owners associations (POAs) filing liens for assessment debts. The bill requires POAs to send homeowners three separate monthly notices of delinquency before filing an assessment lien. This law provides homeowners with a fair chance to address outstanding dues and prevent sudden liens.
Why are these laws important?
- Embrace the Digital Shift: Homeowners’ associations (HOAs) must publish governing documents and meeting minutes online or through an easily accessible app like ONR. This guarantees that residents can stay well-informed without facing unnecessary obstacles. Get prepared to upload!
- Corruption-Free Zone: Upholding ethical conduct is of utmost importance. These legislations introduce criminal sanctions for individuals involved in shady schemes, ensuring fairness and protecting the interests of residents.
- Conducting Effective Meetings: These bills mandate more strict meeting protocols, from providing proper notice to promoting member participation. This results in a more inclusive and effective decision-making process for the community.
- Transparency Now: Safeguarding member rights is a top priority. These bills help prevent fraudulent activities Regular audits and enhanced financial reporting requirements will become standard, and e-voting will be crucial, fostering trust and responsible management.
Being aware of these legislative changes is essential for property managers, as it allows them to ensure that their community association operates efficiently. Familiarizing yourself with state-specific regulations enables you to navigate potential challenges, contributing to the smooth operation of your HOA or condo community.
Remember, a well-informed property manager is an invaluable asset to any community!
The information shared in this article is for educational purposes and not legal advice; consult your lawyer/legal counsel before making any decisions.