House committee advances HOA foreclosure bill after hours of debate over estimates, local control and homeowner protections

A House committee on Feb. 17, 2025, advanced House Bill 10 43 after extensive floor and committee debate. The bill, sponsored by Representative Ricks, would add new protections for unit owners facing enforcement actions by homeowners associations, including a potential stay of up to nine months to allow an owner to sell on the open market and additional disclosure and counseling requirements.

Why it matters: Sponsors said the bill addresses what they described as cases in which investors buy homes lost to HOA foreclosures for a few thousand dollars, leaving homeowners without the equity they had built. Opponents warned that extended stays, mandatory reports and new notice requirements could increase administrative costs for small HOAs and reduce local control.

Representative Ricks, the bill sponsor, described committee amendments designed to protect homeowners. “We were able to add that the homeowners would get the right to sell their homes and ask for a stay motion in the event of a foreclosure in an HOA,” Ricks said, adding the bill also clarifies records management and requires notice to homeowners about credit counseling and foreclosure-help options.

Amendments and debate: The committee considered and passed amendment L 5, which references an estimate from an online real-estate marketplace to help a court gauge fair-market value when an owner asks for a stay of an HOA sale. Critics argued such estimates (for example, Zillow) are often inaccurate; supporters said the estimate is only a starting point and the property must still be listed and must actually sell to resolve liens.

“An estimate…is just to help the court understand around where fair market value might be,” said AML Bacon, who urged an aye vote on the amendment. Opponents warned that inaccurate online estimates could mislead owners and extend time on market, delaying recovery for HOAs.

Another amendment, L 7, requires notice language in the statute (amending section 38-33.3209.5 as shown in the displayed amendment) so unit owners receive a 30-day disclosure that enforcement action may lead to sale at auction. Supporters said the notice gives homeowners a clearer chance to act; the committee adopted L 7 and passed the committee report as amended.

Members who opposed the bill argued it risks shifting costs to paying homeowners and undermining local HOA governance. Representative Wuge called it “a local control thing,” urging residents to use existing HOA processes and elections to change boards. Representative Richardson and others warned mandatory reporting and new notice requirements could increase administrative costs and litigation.

Sponsor and backers said the bill does not remove HOA authority to foreclose; it creates an opportunity for owners to seek a stay to sell and preserve equity. Representative AML Bacon described the problem as “equity theft” in some cases and urged protections so families are not left without resources after a foreclosure.

The THLG committee report passed as amended in committee, and later in the day the full House also adopted House Bill 10 43 on final passage. The transcript records the committee-level adoption of amendments L 5 and L 7 and the committee report; the floor record shows the bill later passed on the House floor.

What to watch: Sponsors asked for continued attention to implementation details, including the mechanics of valuation, timelines for stays and how required notices and reports will be administered and enforced. The bill text references a nine-month sales period for owners who obtain a stay during which the home would be marketed on the open market.

Votes and procedure: The committee adopted amendment L 5 by voice vote after divided floor debate; L 7 and the committee report also passed. The floor passage of House Bill 10 43 was recorded as adopted by voice in the House; a numerical roll call was not reported in the transcript.