The Community Associations Institute (CAI) is dedicated to advocating for legislation that improves the governance and sustainability of community associations. As 2025 approaches, CAI’s state government affairs efforts remain member-driven, focused on refining state policy outcomes to strengthen the community association housing model.

To effectively shape CAI’s 2025 legislative agenda, the Government and Public Affairs team conducted a comprehensive survey engaging CAI members across the country: including legislative action committee members (state and federal) and industry leaders, such as the CAI Board of Trustees, chapter leaders, membership representation groups, and the College of Community Association Lawyers.

The survey results, along with 2024 trends, have led to the identification of the following key legislative priorities for 2025; including Community Governance, Collection of Assessments & Covenant Enforcement, Condominium Safety, Insurance & Risk Management, and Self-Governance of Community Associations.

COMMUNITY GOVERNANCE
Board Authority and Transparency: Increased scrutiny on transparency within community associations remains a major trend. Legislative committees anticipate further legislative proposals focusing on board authority, election procedures, and access to books and records. CAI recommends that board members adhere to their governing documents and applicable laws, while maintaining transparency in meetings and decision-making. This involves conducting open and fair elections, providing access to records, and disclosing any conflicts of interest.

Board Member Education: With the increasing focus on board member education, state legislatures are exploring policies to mandate training for board members. CAI encourages voluntary education for board members and advises legislators to collaborate with CAI’s legislative action committees if considering mandates. This approach ensures that education initiatives align with the unique needs of each community association.

COLLECTIONS OF ASSESSMENTS AND COVENANT ENFORCEMENT
Foreclosures and Fining Authority: The authority of community associations to foreclose for unpaid assessments or fines has been under examination by state legislatures and media outlets. CAI emphasizes the need for fair and equitable foreclosure procedures that protect homeowners and community associations alike. A task force has been established to explore separating foreclosure authority for the collection of delinquent assessments and covenant enforcement (fines), aiming to promote balanced legislation in this area.

Collection of Delinquent Assessments: CAI strongly advocates for efficient and equitable methods for collecting delinquent assessments. Legislative limitations on such collections could undermine community associations’ financial health. Therefore, CAI supports legislation that strengthens collection procedures while ensuring due process protections for homeowners.

CONDOMINIUM SAFETY
Condominium Repair and Maintenance Financing: Following the Champlain Towers South tragic condominium collapse, CAI remains committed to condominium safety.  State legislatures continue to consider various approaches to financing condominium repairs and maintenance. CAI advocates for proactive measures to ensure building safety through reliable reserve studies, funding, maintenance, and structural integrity practices. CAI  remains committed to collaborating with policymakers to promote effective financing options for necessary repairs and maintenance in all community associations.

Reserve Studies and Funding: Reserve studies and funding continue to be a focus for legislators and CAI. CAI and its legislative action committees recommend statutory mandates for reserve studies and funding for all community associations. Additionally, CAI supports requirements for developers to establish proper reserves during the development process to create awareness and financial stability following transition from developer control.  CAI also supports a transition of a maintenance manual.

INSURANCE
Insurance and Risk Management: Rising insurance premiums are expected to continue in 2025; especially considering the devastating impact of Hurricanes Helene and Milton in the fall.  These rising premiums continue to present a significant challenge for community associations, making it difficult to secure coverage that aligns with best practices, governing documents, and legal requirements. CAI plans to collaborate with stakeholders and legislators to develop solutions that address these challenges. CAI promotes comprehensive risk management programs that prioritize legal compliance and financial stability for community associations, access to the state FAIR plan to bridge the gap, and other policy issues in hopes of providing relief to homeowners and the rising costs of insurance.

SELF-GOVERNANCE OF COMMUNITY ASSOCIATIONS
Community Values: Issues such as accessory dwelling units, solar panels, electric vehicle charging stations, and landscaping requirements continue to be topics of legislative interest. CAI supports the right of community associations to self-govern and establish reasonable regulations that reflect their community values.

The regulation of short and long-term rentals remains a topic of interest in many states. CAI believes that community associations are best positioned to determine rental policies based on their governing documents and the preferences of their homeowners.

Many state sessions begin in January and all 50 states will be in session 2025.  Follow what’s happening in your state by visiting our web site with our real time legislative tracking map – www.caionline.org/advocacy and subscribe to our CAI Advocacy Blog – https://advocacy.caionline.org