Committee advances bill to allow condo assessments to overcome homestead exemption

Representative Davis asked the committee to consider HB 343, a bill prompted by constituent testimony that seeks to treat unpaid condominium association assessments as part of the homestead exemption exceptions currently codified in Title 20.

The committee heard detailed testimony from condominium owner and board treasurer Steve Bradshaw, who described a situation at Village Tremont where one unit owner owed about $40,000 in unpaid HOA fees. He said the current homestead-exemption scheme can prevent associations from offsetting those unpaid assessments and leaves other unit owners to subsidize repairs and maintenance. “We believe that Title 20, as it's now written, just unfairly enriches the unit owner who is subject to our judgment and, who has continues not to pay, their shares,” Bradshaw testified.

Representative Carter asked who determines HOA assessment amounts; Bradshaw said budgets vary by condominium declaration and the board of governors in his association makes final budget decisions after member meetings. Representative Carlson confirmed the practical effect, noting that a unit owner with little equity can avoid collection, leaving other owners to cover costs. Representative Brown clarified the bill applies to condominium associations, not neighborhood homeowner associations.

Representative Davis closed by asking the committee to pass the bill “favorably,” and Representative Carlson moved to report HB 343 favorably. With no objection, the committee reported the bill out of committee.

Why it matters: Supporters told the committee the change would let associations recover unpaid assessments in more cases and reduce subsidization by other unit owners; opponents did not offer testimony at the hearing recorded in the transcript.

The bill will proceed to the next legislative stage for consideration by the full House.