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Senate passes comprehensive HOA oversight bill after extended debate
Summary
Lawmakers approved SB 406 requiring registration of homeowners associations, a new administrative complaint process, and higher thresholds and protections for foreclosure on liens; sponsors described the measure as accountability and transparency reform for HOAs.
The Senate passed a broad homeowner/property-owners association (HOA/POA/COA) reform bill after extensive floor debate and several amendments. The sponsor described the measure as aimed at adding "accountability, transparency, and fairness" to associations that collect dues, impose fines, and may foreclose on properties for unpaid assessments.
Under the substitute adopted on the floor, associations that choose to collect certain fees must register with the Secretary of State, provide financials and bylaws to an online portal, and face an administrative complaint and hearing process as an alternative to immediate litigation. The bill raises the minimum arrears threshold that can trigger foreclosure and adds a property owners' bill of rights; sponsors said the change is designed to protect homeowners from disproportionate fines and predatory practices while leaving typical, well-managed associations unaffected.
Senators representing districts with frequent constituent complaints supported the measure; debate centered on specific amendment language and the appropriate minimum thresholds for foreclosure. The Senate adopted amendments clarifying conflict-of-interest rules and procedural protections, and the measure passed by recorded vote (Yea 53, Nay 0) after the committee substitute was adopted.
