A bill was introduced in Colorado last week that would require the approval of the majority of owners for an HOA lawsuit regarding construction defects to advance. The bill, which is reportedly supported by CAI, would ban developers from attempting to influence any community vote and restrict their contact with owners.
HOAs in Florida are able to use credit scores to screen buyers, but they must make sure they are following provisions set down in the Fair Credit Reporting Act or they could be sued. When buyers are rejected, HOAs have to make the disclosures required by federal rules, including telling denied applicants how the decision was reached and how they can fix any errors on their credit reports, writes attorney Gary Singer.
Four California bills regarding HOAs will become law next year, including laws dealing with owner contact information, renting, pest control, defect claims and common-area repairs. A notable federal law that took effect in October requires HOAs to prevent sexual harassment against residents by other residents or property managers.
The New Jersey Legislature is considering seven pieces of legislation that would affect HOAs. Measures include provisions to create a state commission that would resolve HOA disputes and the tightening of conflict-of-interest rules for HOA boards and employees.
Homeowners who think the HOA attorney will represent their individual interests because their dues are footing his or her bill are sorely mistaken, writes attorney Jean Winters. Winters, who specializes in community associations, says the HOA's attorney is working in the best interest of the association to represent the board, but this construct can cause problems when dealing with a recall election involving board members.