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State Law Survey February 2009: What's New and Important for HOAs?
February 2009

HOA Bills to be Introduced in Arizona

PHOENIX—Arizona legislators will introduce bills in 2009 that would give homeowners associations the ability to regulate the size of "for sale" signs in neighborhoods and protect community features—such as golf courses—from undergoing significant changes without a vote by nearby residents, according to The Arizona Republic. Those are just two bills that legislators say will strengthen communities and address homeowners' concerns. In some cases, according to the newspaper, homeowners associations have distressed residents by seeking to change the makeup of their community. For instance, in November 2008, residents in the Lakes at Ahwatukee expressed concern about plans to replace their golf course with townhomes. Another bill would override governing documents that require 75 percent or more of homeowners to approve rule changes, instead implementing a statewide standard as low as 50 percent. Lawmakers are also considering introducing legislation that would bar associations from changing rules during a lawsuit and that would create an "HOA Court," an idea that has already been struck down by Arizona courts.

Florida City Tries to Make Lenders Cough Up Fees

DAYTONA BEACH SHORES, Fla.—The city council has proposed an ordinance that would require mortgage holders to pay for delinquent condominium, co-op, and homeowner association fees on units in foreclosure, according to East Volusia Newsjournalonline.com. City Manager Mike Booker told the publication that he got the idea from a similar ordinance in Miami Beach. Florida law currently holds mortgage holders responsible only for six months of unpaid maintenance fees and regular assessments at the time of foreclosure or unpaid condominium association fees that are less than one percent of the original mortgage amount.

Updated Condo Law Takes Effect

NASHVILLE, Tenn.—The Tennessee Condominium Act of 2008 is now open for business. The new law clarifies how land should be allocated in a condo association and what rules condo developers have to follow when they remain involved in a finished project, according to Tennessean.com. The law also gives condo associations more power to enforce covenants that owners sign when they buy into a condominium, and it gives associations a better shot of collecting on liens against owners who don't pay their association fees. Before the law was passed, associations were treated like ordinary creditors, with their claims prioritized based on when they were filed. Under the new law, association liens fall behind only the first mortgage holder.

Texas Legislator Introduces Bills to Aid Homeowners

AUSTIN, Texas—Texas Rep. Jim Jackson (R-Dallas) has proposed legislation that would give homeowners more authority over their homeowners' associations, according to Texasinsider.org. House Bill 371 bill would allow owners of some associations to dissolve their association after 25 percent sign a petition seeking an election and then two-thirds of owners vote in that election to dissolve the association, regardless of the dissolution rules of their governing documents. House Bill 372 bill would require all homeowners associations to abide by the Government Open Records Open Meetings Act, which requires entities to hold open meetings and make all records available for review. "Legislators have repeatedly received contacts from property owners in this state who have experienced abuse from their property owners' association," Jackson told TexasInsider.org. "Hopefully, House Bills 371 and 372 will give them the tools they need to remedy these problems."



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