HB1401: Homeowners association governance.

Legislative Summary

Homeowners association governance. Amends as follows the statute governing homeowners associations: (1) Provides that for each meeting of the homeowners association (HOA) board, the board must provide at least four days advance written notice of the meeting to members of the HOA and requires the notice must include: (A) a meeting agenda; and (B) in the case of the notice for annual meeting, a statement of the right of HOA members to demand a special meeting of the members, including a statement of the statutorily required number of members needed to demand a special meeting. (2) Provides that a member of an HOA is considered to be in attendance at a meeting of the HOA if the member attends by remote or virtual means in accordance with the procedures for remote meetings set forth in the statute governing nonprofit corporations. (3) Provides that an HOA's governing documents may not require the attendance of more than 25% of the members at a meeting to constitute a quorum. (4) Authorizes an HOA to assess a fine for a member's violation of a covenant if the HOA first: (A) adopts a schedule of fines for specified violations; and (B) in the case of a violation by a member, provides to the member a notice setting forth the violation, the amount of the fine, and the date on which the fine will be assessed. (5) Amends provisions governing the resolution of disputes between HOAs and members to specify that if a claimant under those provisions is an HOA and the claim involves a member's violation of the covenants of the HOA, the board may: (A) assess a fine under the bill's provisions authorizing the assessment of fines or enforce a fine previously assessed under that authority; and (B) seek to recover from the other party any court costs or attorney's fees incurred in connection with the claim.