Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Hoa Fee Cap topic
No spam. Unsubscribe anytime.
Sponsor seeks cap on resale 'new owner' fees in HOAs, supporters propose alternative caps
Summary
Delegate Kim Ross pressed for HB 15‑06 to cap new‑owner (capital contribution) fees at resales — sponsor proposes one month's assessment (open to three months) — proponents argue it prevents surprise closing‑table charges and discriminatory gating while CAI and industry witnesses proposed higher caps and governing‑document amendments.
Delegate Kim Ross presented HB 15‑06 as a targeted affordability and transparency measure that would cap new‑owner fees charged by common‑ownership communities (HOAs, condo associations) on resales. Ross said the bill would not affect starter contributions for new developments; its focus is resales where communities already collect monthly assessments and a surprise capital contribution at closing can become a barrier to homeownership.
Ross said the current bill caps the fee at one month of assessments but she is open to CAI’s recommendation for three months; CAI representatives later suggested up to six months in certain circumstances and asked that governing documents explicitly authorize such fees. Supporters including a virtual Dr. Ronald Blue and in‑person Cynthia Kent said many communities charge varying amounts and homeowners bear significant costs at resale; Dr. Blue argued homeowners need relief from what he called “excessive” upfront charges.
Ross and supporters framed the measure as an affordability, anti‑discrimination and consumer‑protection rule: it would prevent communities from using the fee as a barrier—"a money grab"—against lower‑income buyers. CAI and other stakeholders asked for flexibility (higher caps, allowance for small associations, and for the association governing documents to permit fees). The committee recorded favorable testimony with amendments under consideration.
