A review of new legislation being considered in many state legislatures clearly shows a growing trend toward justice and fair play for homeowners. Substantive HOA reform bills can be found in Arizona, Colorado, Florida, North Carolina and Texas to name those are known to me.
SB 2292 seeks to end mandatory HOAs for new subdivisions.
SB 1278 reasserts local municipality control of public streets in HOAs.
Colorado. HB 1276 seeks to restrict HOA foreclosures by setting forth strict procedures for HOAs to follow if they seek to foreclose on a homeowner that include restrictions on the sue of collection agencies, the adoption of a formal payment plan, notice to delinquent homeowners stating the exact amounts owed, and the procedures to resolve issue before any action can be taken..
SB580 places restrictions on management firms.
SB 596 creates a powerful, bona fide state agency to regulate HOAs and that can make rules, to investigate complaints and to seek penalties and restitution in civil court.
North Carolina. HB 175 is another foreclosure reform bill that prohibits assessment foreclosure, but allows HOAs to obtain court judgments for the assessments owed. It requires a notice of a claim of lien to be served on the homeowner before any action can be taken.
Texas. HB 3803 seeks state oversight by allowing the attorney general investigation of financial wrong-doing by the HOA, with penalties.
Much, much more legislation dealing with substantive HOA reforms is needed. This legislation would deal with fair and just due process procedures in HOA disputes, foreclosure reforms, clean elections procedures, meaningful enforcement against HOA violators, and ending the “consent to agree” misrepresentation in the sale of a home in a HOA.
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