State legislatures across the country continue to shape the laws that govern the 390,000 community associations across the United States, making it more important than ever for board members, community managers, and industry professionals to stay informed. As we reach the midpoint of the legislative year, several key proposals affecting community associations were enacted, others have been defeated, and many remain under consideration.
This mid-year update provides a snapshot of a few significant legislative developments, highlights emerging trends across the states, and underscores the importance of continued advocacy as lawmakers consider proposals that will impact the future of community associations.
What Passed?
Georgia SB 406. The Georgia Property Owners’ Bill of Rights Act passed, requiring associations to register with the state, create a process for the secretary of state to handle complaints filed by owners, and set rules for how associations operate, renew registration, and handle foreclosures and disputes. CAI’s Georgia Legislative Action Committee collaborated extensively with lawmakers to amend the bill and successfully improve several provisions from what was originally introduced.
Minnesota SF 1750/HF 1268. This legislation makes significant changes to Minnesota’s laws governing common interest communities following recommendations from a legislative working group established to study homeowners associations and common interest communities. Throughout the legislative process, CAI’s Minnesota Legislative Action Committee collaborated extensively with lawmakers to amend the bill to successfully remove or improve several provisions that would significantly restrict association governance, assessment collections, and enforcement authority. While the final law still includes new compliance, disclosure, and enforcement requirements that will increase administrative responsibilities for community associations, advocacy efforts helped prevent many of the bill’s most burdensome provisions from becoming law.
New Mexico SB 96. As introduced, this bill would force associations to accept the presence of home-based childcare facilities without preserving the association’s ability to adopt and enforce reasonable, uniformly applied rules addressing parking, traffic, common-area use, amenities, liability, insurance, and architectural standards. CAI New Mexico advocates were able to successfully negotiate improvement to the bill that preserve uniform rule enforcement, allow recovery of cost-based, documented fees, ensure state licensing requirements do not override neutral association rules, protect associations’ authority to regulate health, safety, and property and preserve control over common areas.
Utah HB 406/SB 122. In 2025, Utah’s legislature established a state community association ombudsperson office. These two bills amend current Utah statute and CAI’s Utah Legislative Action Committee negotiated to clarify the office’s roles and responsibilities when handling disputes. These bills also clarify that the ombudsman office does not have an attorney-client relationship with individuals who engage the office and specify what materials must be published by the office on its website.
What Failed?
Arizona HB 2172. This proposal sought to require a mandatory expiration of planned community declarations and dissolution of homeowners associations. Associations would automatically dissolve on Jan. 1, 2127, or 100 years after the original declaration recording date, whichever is later. Upon expiration, associations would be required to liquidate their affairs according to law. Property owners could voluntarily re-establish a planned community after dissolution as permitted by law.
Florida HB 657. The bill made sweeping changes to association termination rules, meeting procedures, board rules and responsibilities, dispute resolution, and governing document amendment procedures. Under HB 657, an association could amend governing documents with a minority vote of owners and terminate associations with just the petition of 20% of residents. The instability these provisions would cause are critical: associations across the state could have rules rewritten or be dissolved altogether by a small group of disgruntled residents with no way for other homeowners to stop the process. This bill also sought to create a community association court to decide disputes. In practice, this would mean another layer of bureaucracy for associations to navigate, and another opportunity for the state to interfere in internal community matters. CAI’s Florida Legislative Alliance launched a campaign engaging more than 400 Florida advocates to oppose the bill.
Louisiana HB 817. The bill sought to create burdensome administrative actions for community association such as retroactively amending governing documents, duplicative recordkeeping, and unnecessary reporting that would increase costs for homeowners. The bill also would shift responsibilities for tracking sales of homes onto associations instead of sellers and new homeowners. CAI leaders launched an opposition campaign sending hundreds of emails to the bill sponsor urging industry opposition.
Mississippi SB 2644. If passed, this bill would have placed a $200 cap on estoppel certificates plus a $50 cap on rush fees. It also states that documents must be delivered within 10 business days, and delinquent fees cannot exceed $100. CAI advocates submitted a petition with dozens of industry signatures to the bill sponsor in opposition of the bill.
What’s Still in Play?
California AB 2050. This bill is spearheaded by CAI’s California Legislative Action Committee. Beginning Jan. 1, 2032, it would require homeowners associations to identify the minimum annual reserve contribution needed to ensure reserve balances do not fall below zero over the next 30 years. Associations must transfer a minimum of 15% of its operating budget to reserves if the fund is projected to fall below zero at any point over the 30-year reserve study projection. The association also may impose a reserve special assessment equal to 5% of the operating budget no more than once every nine years to bring the reserve funding level back above zero. It has passed the California senate policy committees and is awaiting action on the senate floor.
District of Columbia B 26-0156. The proposed legislation mandates that entities providing property management services in Washington, D.C., must be licensed, addressing a gap where only individual property managers previously were required to have licenses.
Michigan HB 5784. Spearheaded by CAI’s Michigan Legislative Action Committee, this legislation mandates condominium associations conduct a reserve study to evaluate the funds necessary for the maintenance and replacement of common elements. For newly established projects, the study must be completed 30 days before the transitional control date. Existing projects have three years to meet this requirement. The reserve study must be updated every five years, and the results must be used to formulate a reserve funding plan and shared with unit owners. Associations also must maintain a reserve fund separate from operating funds to ensure financial coverage for required repairs or replacement activities.
New Jersey AB 4212. The bill seeks to increase the department of community affairs’ authority over common interest communities by implementing a trust fund, forming an advisory council, and creating an ombudsman office. These measures aim to enhance oversight and support for community structures.
While many state legislative sessions have concluded, CAI’s advocacy efforts never stop. Every bill introduced, amended, or enacted reflects decisions that can have lasting effects on the millions of people who live, work, and volunteer in community associations. Building sound public policy requires informed voices, meaningful relationships with lawmakers, and sustained engagement throughout the legislative process. By working together to educate policymakers and share the real-world impact of proposed legislation, the community association industry can help advance balanced, effective laws that strengthen communities while preserving the ability of associations to govern responsibly.
Thank you to the incredible CAI volunteers, advocates, and partners whose dedication makes this important work possible. CAI’s Government and Public Affairs team looks forward to continuing these efforts in the months ahead and encourages everyone to stay engaged as legislative activity continues across the country. To learn more about 2026 legislation impacting community associations, visit CAI’s legislative tracking map here. If you are interested in reviewing your state’s 2026 end of session report, please visit your state’s legislative action committee page here.
If you have any questions or would like to get involved in CAI advocacy, please contact CAI’s Government and Public Affairs team at government@caionline.org.
