Post by Admin on Dec 30, 2017 9:53:44 GMT -5
HOA's have always lagged far behind other forms of common interest developments in terms of laws. Increasingly, disenfranchised HOA consumers have demanded parity with laws governing condos/timeshares/coops.
The trend in sales in HOA's has flattened out after decades of increases. In part, this is due to the negative experiences of consumers of housing in HOA's, many of whom are now avoiding buying houses in HOA's. This bill begins to address important areas of regulation that is afforded to condo owners--but absent for owners in HOA's. Among the changes proposed to go into effect July 1, 2018 are:
1-providing requirements relating to the posting of specified documents on an association's website; (the documents list is exhaustive and includes virtually ALL documents created in SLohA business. Access to records is critical to oversight and transparency. Imagine--no more need for official records requests! All records will be required to be posted!)
2-prohibiting an association from hiring an attorney who represents the management company of the association (this forum has opined about the Management Company's attorneys' conflict of interest in "advising" SLohA for years, despite frequent and empty protestations by BOD that the attorney's are our attorneys...)
3-deleting a provision requiring the board to certify written ballots or agreements to recall a director or directors; (this is a bombshell! No longer can the BOD SELF CERTIFY a recall petition by owners. The recall dismissal is immediate and presumed certified. The recalled director has due process to cH allenge a recall AFTER the fact, like any dismissed employee.)
4-prohibiting an association and its officers, directors, employees, and agents from using a debit card issued in the name of the association, or billed directly to the association, for the payment of any association expense; providing that the use of such debit card for any expense that is not a lawful obligation of the association may be prosecuted as credit card fraud; (this forum has complained about the thousands of dollars of "invisible" expenses bundled on the SLohA Suntrust credit card for years)
5-requiring the association to maintain bids for materials, equipment, or services as part of the official records (Many knowledgeable owners as well as this forum and the previous forum administrator were particularly concerned about The Tkr CONNECTION which appeared to be an "alternative bidding process" eventually producing an inferior work product, notably on S-bag's road resurfacing)
6-providing that a renter of property in a community operated by an association has a right to inspect and copy the association's bylaws and rules; (this will become more important as S-bag increases its renter demographic)
7-prohibiting specified parties from purchasing a parcel at a foreclosure sale resulting from an association's foreclosure of association lien for unpaid assessments or from taking a title by deed in lieu of foreclosure; (SLohA has purchased at least 3 properties it foreclosed on in the last 5 years --notwithstanding that it does not have the covenanted authority to lien and foreclose--so this one assures that this conflict of interest practice of the past will not continue.)
8-specific criminal charges for directors who refuse to allow inspection of records, engage in election ballot tampering or fraud, acts violating human rights and safety (e.g. BOD refusal to provide records to document involvement with KCNET, need for water assessment increase, ongoing observed ballot tampering, BOD Treasurer and Security Patrol's vehicular assaults on owners)
9-limit on terms of directors to 8 consecutive years (this is a major problem in smaller associations but S-bag already has a stricter term limitation)
10-Addition of disclosures for potential and actual conflict-of-interest. (The BOD should STUDY this one! Any "contract" not disclosed has having potential conflict of interest is voidable by vote of 20% Owners. BOD: This includes unratified contracts with KCNET)
There are many more changes but these are the most notable and have already been enacted for condos in 2017. The complete bill can be read here:
HOA Reform Bill HB873
The trend in sales in HOA's has flattened out after decades of increases. In part, this is due to the negative experiences of consumers of housing in HOA's, many of whom are now avoiding buying houses in HOA's. This bill begins to address important areas of regulation that is afforded to condo owners--but absent for owners in HOA's. Among the changes proposed to go into effect July 1, 2018 are:
1-providing requirements relating to the posting of specified documents on an association's website; (the documents list is exhaustive and includes virtually ALL documents created in SLohA business. Access to records is critical to oversight and transparency. Imagine--no more need for official records requests! All records will be required to be posted!)
2-prohibiting an association from hiring an attorney who represents the management company of the association (this forum has opined about the Management Company's attorneys' conflict of interest in "advising" SLohA for years, despite frequent and empty protestations by BOD that the attorney's are our attorneys...)
3-deleting a provision requiring the board to certify written ballots or agreements to recall a director or directors; (this is a bombshell! No longer can the BOD SELF CERTIFY a recall petition by owners. The recall dismissal is immediate and presumed certified. The recalled director has due process to cH allenge a recall AFTER the fact, like any dismissed employee.)
4-prohibiting an association and its officers, directors, employees, and agents from using a debit card issued in the name of the association, or billed directly to the association, for the payment of any association expense; providing that the use of such debit card for any expense that is not a lawful obligation of the association may be prosecuted as credit card fraud; (this forum has complained about the thousands of dollars of "invisible" expenses bundled on the SLohA Suntrust credit card for years)
5-requiring the association to maintain bids for materials, equipment, or services as part of the official records (Many knowledgeable owners as well as this forum and the previous forum administrator were particularly concerned about The Tkr CONNECTION which appeared to be an "alternative bidding process" eventually producing an inferior work product, notably on S-bag's road resurfacing)
6-providing that a renter of property in a community operated by an association has a right to inspect and copy the association's bylaws and rules; (this will become more important as S-bag increases its renter demographic)
7-prohibiting specified parties from purchasing a parcel at a foreclosure sale resulting from an association's foreclosure of association lien for unpaid assessments or from taking a title by deed in lieu of foreclosure; (SLohA has purchased at least 3 properties it foreclosed on in the last 5 years --notwithstanding that it does not have the covenanted authority to lien and foreclose--so this one assures that this conflict of interest practice of the past will not continue.)
8-specific criminal charges for directors who refuse to allow inspection of records, engage in election ballot tampering or fraud, acts violating human rights and safety (e.g. BOD refusal to provide records to document involvement with KCNET, need for water assessment increase, ongoing observed ballot tampering, BOD Treasurer and Security Patrol's vehicular assaults on owners)
9-limit on terms of directors to 8 consecutive years (this is a major problem in smaller associations but S-bag already has a stricter term limitation)
10-Addition of disclosures for potential and actual conflict-of-interest. (The BOD should STUDY this one! Any "contract" not disclosed has having potential conflict of interest is voidable by vote of 20% Owners. BOD: This includes unratified contracts with KCNET)
There are many more changes but these are the most notable and have already been enacted for condos in 2017. The complete bill can be read here:
HOA Reform Bill HB873