Short bill to ban HOA sale‑transfer fees draws divided committee response; due‑pass motion fails

Representative Lujan introduced House Bill 232 (presented as an HOA transfer‑fee prohibition), saying the measure responds to constituent complaints that some homeowners associations assess a percentage of sale price when properties change hands and that such fees can put homeownership out of reach. The sponsor said the bill would prohibit HOAs from imposing those transactional percentage fees.

There was no in‑room public testimony; the committee took questions from members. Several members said homeowners enter HOAs voluntarily and sign contracts that specify conditions; others said some boards change fees and conditions over time or act without full membership participation, creating barriers to property transfers and affordability. Representative Murphy and Representative Armstrong voiced concerns that the bill would interfere with private contracts and that the fee arrangements are part of voluntary governance; Representative Murphy said the bill, as written, did not convince him it would increase rural access to housing.

Representative Serrato moved a do‑pass recommendation and Representative Parajon seconded. The committee held a roll call. The tally reported in committee minutes was 4 yes, 6 no on the due‑pass motion; the committee therefore did not return a favorable recommendation on HB232. Committee leaders discussed leaving the measure to “sit” and the sponsor said the bill raises broader questions about HOA governance that could require a larger study.

No amendment or additional testimony was adopted during the hearing; the hearing record shows committee members debating the tradeoffs between private contract autonomy and consumer protections.