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House OKs bill that outlines pathway to transfer HOA control to homeowners
Summary
House Bill 3 61 sets timelines and thresholds for homeowners to be offered HOA board seats and for developers to cede control once build‑out milestones are reached; the House approved the bill by recorded vote.
The Idaho House passed House Bill 3 61, legislation establishing a timeline and thresholds for returning control of homeowners associations (HOAs) from developers to homeowners.
Under the bill as described on the floor, once 75% of lots in a development are sold the developer must offer homeowners the opportunity to sit on the HOA board on or before 180 days after that milestone. When a development reaches 95% build‑out, the developer must begin the formal transition process; the statute sets a 12‑month period for the transfer of control. The bill also places a limit on proxy voting by prohibiting any single homeowner from controlling more than 50% of proxy votes.
Sponsors said the bill creates a clear path to homeowner representation and addresses concerns about prolonged developer control in new subdivisions. The House recorded 66 ayes and the bill passed and will be transmitted to the Senate.
The floor remarks stressed the measure is intended to protect homeowner representation and to provide predictable timelines for transitions from developer control. Different members noted the bill affects subdivision declarations and proxy voting practices.
With House passage, the bill will proceed to the Senate for consideration.
