Every fall, CAI surveys hundreds of legislative action committee members to evaluate potential state legislative policy trends. The predicted 2024 policy issues include reserve studies and funding, foreclosures and fining authority, board member education, manager licensing, environmental sustainability, and risk management and insurance.
With 46 state legislatures convening in 2024, CAI’s LACs spent hundreds of hours advocating for or against many issues throughout 2024. Many of CAI’s state efforts experienced a great deal of success so far this year. The community association industry achieved legislative success on the following 2024 priority issues:
Reserve Studies and Funding. CAI supports state laws that mandate reserve studies and appropriating funding for condominium and homeowners associations. In 2024, Connecticut, Georgia, Hawaii, Illinois, Maryland, Michigan, and Virginia introduced legislation addressing reserve regulations.
The Connecticut Legislative Action Committee successfully opposed legislation mandating associations boards in the state to conduct the reserve study. CAI’s public policy recommends a reserve specialist/reserve professional or other qualified professional (e.g., engineer or architect), not an association board, conduct a study. Hopefully, the LAC introduces reserve legislation that aligns with CAI’s public policy in 2025. Virginia passed legislation further clarifying its current reserve study and funding mandates. Illinois and Michigan’s reserve legislation remains pending in 2024.
Foreclosures and Fining Authority. CAI supports legislation that provides a fair and equitable foreclosure process that protects homeowners, property values, and the financial health of community associations by ensuring foreclosures are completed in a timely and reasonable manner. This year, Arizona, Colorado, Georgia, Minnesota, North Carolina, South Carolina, and Virginia introduced legislation to limit a community association’s foreclosure ability.
CAI’s LACs in Colorado, Minnesota, and South Carolina defeated similar legislation through education and advocacy efforts. Arizona and Georgia passed legislation enacting additional regulations on an association’s foreclosure ability. North Carolina’s legislation is pending. LACs actively educated legislators on reasonable foreclosure procedures and laid a foundation and built awareness of CAI in the legislature for future years.
Board Member Education. Last month, CAI updated its board member education public policy to provide LACs with flexibility to support certain state mandates. Previously, CAI’s LACs opposed state mandated board member education as outlined in the previous CAI public policy.
Hawaii, Maryland, New Jersey, and Washington introduced legislation addressing certain board member education state mandates. CAI LACs defeated this legislation in Hawaii, Maryland, and Washington. New Jersey’s legislation remains pending.
Community Association Manager Licensing. CAI supports self-regulation of the community management profession through professional certification and designation programs developed by industry professionals and opposes state mandated licensing of community associations managers.
In 2024, Colorado, Maryland, New Jersey, New York, Oklahoma, and Washington D.C., introduced legislation requiring a level of mandated state licensing for community association managers. CAI LACs in Colorado, Maryland, and New York defeated this legislation through education and grassroots advocacy. Oklahoma does not have a formal CAI LAC, and a task force of CAI members from the state convened to defeat this legislation. New Jersey and Washington D.C.’s legislation remains pending in 2024.
Environmental Sustainability: CAI supports environmental and energy efficiency policies that recognize and respect the governance authority and contractual obligations of community association residents. This priority encompasses many legislative trends such as electric vehicle charging stations, solar panels and infrastructure, and landscaping. CAI’s LACs continue to advocate for an association’s ability to reasonably regulate and support green energy.
Risk Management and Insurance. CAI supports access to affordable property insurance coverage, especially for condominiums and housing cooperatives. Community associations have recently experienced extraordinary and unaffordable premium increases. Some community associations were forced to use a line of credit or charge a special assessment to pay for these extraordinary premiums. CAI’s LACs are working with insurance commissioners, FARE plans, and legislators to identify solutions to this crisis.
California, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, Rhode Island, and South Carolina introduced some form of legislation addressing insurance issues. Louisiana passed a package of insurance legislation updating current regulations that are favorable to community associations. South Carolina passed a resolution creating a state task force to research and create recommendations that address affordable insurance issues for specific industries, including condominiums. SC LAC supported this legislation and will work with its lobbyists to ensure the community association voice is heard during these task force meetings.
Read more on these issues on our Advocacy Priorities Webpage and stay connected with our Advocacy Blog for updates on continued progress with these and other important legislative issues.
Support these continued efforts today! As 2024 state legislative sessions continue, several other CAI LACs are advocating on behalf of community associations. Individual and corporate donations are allowed and greatly appreciated. Donate or learn more about your CAI state LAC, here.
Click here for current legislation, tracked, and addressed by CAI’s LACs across the country.
