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Bill lets homeowners assert ‘abandonment’ defense when HOAs stop enforcing covenants for long periods
Summary
House Bill 147 would clarify when a homeowner may assert that an HOA covenant has been abandoned by defining an enforcement action as one that is applied “equally and consistently” on all properties for at least a two‑year period; sponsors say the change prevents selective and retributive enforcement by boards.
Representative Jedediah Hinkle introduced House Bill 147, which would add a statutory definition so a parcel owner can defend against enforcement by showing the covenant had been effectively abandoned under the statute’s eight‑year rule.
“Some boards enforce a covenant for a period of time, then stop enforcing it, then later choose to enforce it again,” Representative Jedediah Hinkle told the committee. He said the bill would define an enforcement action to mean the covenant “was equally and consistently enforced on all properties subject to the covenant over at least a two year period.” The sponsor said the two‑year threshold is intended to capture continuity of enforcement across board turnovers.
Proponents described examples of selective or retributive enforcement and the power of HOAs to impose fines or liens when covenants are deemed violated. Suzanne MacKay, a Belgrade resident, testified she has personally faced repeated and inconsistent notice letters after board changes and that the lack of consistent enforcement allowed some boards to “terrorize the neighborhood.” Michael Mircasco described a local dispute where residents said board officers attempted to enforce matters outside the HOA’s authority and that homeowners had been forced to hire counsel.
The committee discussed definitional issues — what “equally” and “consistently” mean in practice — and members asked whether the bill would require HOAs to take action on every complaint. The sponsor said the language is a starting point to give homeowners a demonstrable defense under the existing eight‑year statutory period (cited in committee as MCA 70‑17‑210 and the referenced 8‑year clock in the statutes identified during testimony). He said he is open to refining the definitions to avoid unintended consequences.
Why it matters: HOAs can impose fines and liens; homeowners said inconsistent enforcement and short‑lived enforcement spur litigation and unfair results. Supporters asked the committee to adopt guardrails to protect homeowners from capricious enforcement when boards change composition.
Next steps: testimony closed with several homeowners urging advancement; sponsors asked the committee to consider specific definitional amendments to clarify “equal” and “consistent” enforcement standards.
