Montana Legislature approves new rules for homeowners association transparency and governance

House Bill 619, introduced in the Montana Legislature on February 20, 2025, is set to reshape the governance of homeowners' associations (HOAs) by enhancing transparency and accountability. The bill aims to clarify the rights of unit owners regarding access to association records, ensuring that they can obtain necessary information without undue barriers.

Key provisions of HB 619 include the establishment of a clear framework for unit owners to request and receive copies of association records, with the stipulation that associations may charge a reasonable fee for this service. Notably, the bill emphasizes that information cannot be used for commercial purposes, safeguarding the privacy of unit owners. Additionally, it outlines the responsibilities of the executive board in notifying unit owners about proposed rule changes, fostering a more inclusive decision-making process.

The bill has sparked debates among legislators and stakeholders, particularly concerning the balance between transparency and the operational efficiency of associations. Critics argue that the requirements could burden associations with excessive administrative tasks, while proponents assert that increased transparency is essential for protecting homeowners' rights and fostering trust within communities.

Economically, the implications of HB 619 could be significant. By enhancing transparency, the bill may lead to increased property values as potential buyers feel more secure in their investments. Socially, it aims to empower unit owners, giving them a stronger voice in the governance of their communities.

As the bill progresses through the legislative process, its potential to redefine the relationship between homeowners and their associations remains a focal point of discussion. If passed, HB 619 could set a precedent for similar legislation in other states, reflecting a growing demand for accountability in community governance.