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Committee OKs HOA fidelity-bond requirement to protect residents
Summary
The committee voted unanimously to move Senate Bill 23‑26, which would require homeowners associations to obtain and maintain a blanket fidelity bond against theft or dishonesty by officers or employees, to the committee calendar.
Sponsor explained SB 23‑26 would require homeowners associations or unit owners associations to obtain and maintain a blanket fidelity bond to protect against losses from theft or dishonesty by officers, directors or employees. "This legislation requires a homeowners association or unit association in HOAs to obtain and maintain a blanket fidelity bond to ensure itself against losses resulting from theft or dishonesty," the sponsor said.
Members noted the bill was developed with industry input and that the bond would provide modest protections and be priced according to risk; the roll call showed nine ayes and the bill was moved to the committee calendar. The sponsor said the measure had support or no opposition from the industry stakeholders who had been consulted.
