During the COVID-19 pandemic, CAI’s legislative action committees (LACs) volunteered hundreds of hours reviewing bills, drafting testimony, working with lobbyists, meeting with legislators and other decision-makers, and testifying for and against bills.
Here is the fourth part of our series focusing on legislative issues impacting the community association housing model.
With the abrupt and surprising end to the Manager Licensing Act in 2019 and subsequent stakeholder meetings facilitated by the Department of Regulatory Agencies, regulating homeowners associations was on the state’s legislative agenda for 2020.
HB 1200: Sunset of homeowners association information and resource center. The legislation extends the HOA Information and Resource Center until September 2025 and prohibits associations from banning some religious or political symbols on door frames. Status: Passed.
HB 1333: Homeowners association transparency. This omnibus legislation includes provisions to amend the Colorado Common Interest Community Act to require mandatory reserve studies, audits, and training for board members. In addition, the legislation includes mandatory posting of governing documents on websites, the ability of owners to record meetings, the use of election inspectors, and access to association records. Status: Failed.
SB 126: Child care in community. Notwithstanding rules or covenants, a community association may not prohibit the operation of a licensed family childcare service. However, an association may require liability insurance coverage. Status: Passed.
HB 1070: Condominium insurance and associated disclosure requirements. The legislation confirms that condominium associations are not required to obtain insurance related to water damage. The legislation also imposes disclosure requirements on associations and unit owners regarding whether water damage insurance is carried. Status: Passed.
SB 442: Covenants that restrict rentals. The legislation prohibits a community association from enforcing amendments to covenants that restrict rentals if the covenant didn’t exist when the owner purchased their lot/unit. Status: Passed.
H 503: Political signs in homeowners associations. Community associations may not adopt a rule or covenant that prohibits the display of a political sign. Associations can adopt reasonable rules related to display of political signs. Status: Passed.
SB 1429: Long-term rentals. The legislation prohibits a community association from adopting and enforcing amendments to covenants that restrict rentals if the covenant didn’t exist when the owner purchased their lot/unit. This measure is likely to be reintroduced during 2021 as the push for rental options remains strong. Status: Failed.
SB 2098/HB 2485: HOA requirements. The legislation would impose mandatory bylaw provisions for all HOAs, some of which conflict with current law. This mandate would have required every HOA in Tennessee to amend current bylaws, imposing legal fees and other expenses and increasing HOA costs for homeowners. We can expect to see this or similar legislation next year. Status: Failed.
SB 2647/HB 2837: Estoppel certificates. The legislation would expand requirements and create a mandatory cap on fees related to estoppel certificates prior to the closing of any property that is part of an HOA. Status: Failed.
View Part III of CAI’s state legislative update series on Arizona, Florida, Hawaii, North Carolina, and Washington.
View part II of CAI’s state legislative update series on Alabama, Indiana, Minnesota, and Missouri.
View part I of CAI’s state legislative update series on Connecticut, Maine, Maryland, South Carolina, and Virginia.
View more information on what is happening or happened in your state during the 2020 legislative session.