Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing topic
No spam. Unsubscribe anytime.
House raises minimum allowable condo rentals to 20% in amended HOA bill
Summary
Lawmakers amended and passed HB243 to clarify which associations can limit rentals, increase the statutory minimum allowable rentals from 10% to 20%, and require hardship provisions; the amendment passed on the floor and HB243 passed 72–3.
Representative Gage Forrer sponsored House Bill 243 to clarify rental‑restriction rules for condominiums and other common‑interest communities. On the floor, Representative Ford moved Amendment No.1 (02/02/2009), which the sponsor said clarifies who must comply, raises the allowed minimum rental percentage from 10% to 20% and requires homeowners associations to adopt hardship provisions.
Ford told colleagues the change to 20% was made in consultation with industry stakeholders, including some HOA organizations, lenders and federal entities, and was intended to align with mortgage‑underwriting practices. “We felt after analyzing that the 10% in today’s market may not be adequate,” she said, describing the amendment as more in line with HUD, Fannie Mae and Freddie Mac guidance.
Representative Bigelow questioned whether a 20% minimum still allows associations to set much higher rental shares and said buyers assume condominium ownership will not lead to large rental conversions. Sponsor Forrer and other supporters emphasized that declaration changes still require a two‑thirds owner vote, which preserves owners’ control.
The House adopted Amendment No.1 and then passed HB243 as amended. The Clerk announced the final vote as 72 yes, 3 no; the bill will be transmitted to the Senate.
