A proposed law change in South Carolina has specific requirements for developers to transfer control of the HOA executive board to owners based on the number of properties sold. The current law allows developers to keep control as long as they deem necessary so that property owners won't hamper the project's development.
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.
HOAs are not exempt from complying with city, county, state and federal minimum wage laws, even if the compliance means increasing monthly dues and assessment amounts. HOAs can opt to impose a special assessment to cover the additional cost, or to keep expenses down, HOAs can lay off workers or reduce their hours.