Today I’d like to quickly talk about what I’ve come to call the real estate boogeyman: homeowners associations. Commonly shortened to HOAs, they are often thought of as big, bad, and nasty organizations by homeowners. Here’s what I mean:
Senate Bill 1588 went into effect on September 1 with the goal of taking away some of the abusive powers that many HOAs wielded. Here are a few items included in the bill that work to accomplish that:
- The cost of updated resale certificates is now just $75 whereas they were once hundreds or thousands of dollars.
- HOAs are now required to maintain websites with their management certificates and meeting information posted in order to maintain transparency.
- Property owners have been given new protections from negative credit reporting when a fine is in dispute—in the past, the fine would automatically go on their credit report and come off only when the dispute was resolved.
- HOAs are required to solicit bids for contracted services over $50,000.
- HOA boards are required to provide members with timely notice about meetings. Eight hours’ notice will no longer be enough.
Click here to read the full language of the bill. If you have any further questions about SB-1588 or how it could impact your HOA, give me a call or send an email. I’d be happy to provide you with a summary.