As indicated in a recent newsletter from our firm, I fully expected the failed Community Association Bill of 2019 to largely be reintroduced this year (2020) and it appears that has come to pass.
House Bill 623 appears to be progressing through the legislative process, and was recently added to the Business and Professions Subcommittee agenda. House Bill 623 reintroduces many of the same proposed legislative changes which were introduced last year but failed to successfully maneuver their way through the legislative process. Below are highlights of the proposed changes:
- Exempts community pools serving communities with no more than 32 units or parcels from Department of Health requirements
- Limits rights of subrogation against a Condominium Association under unit owner insurance policies
- Expands on official records in condominiums to capture those which are not “written records”, implicating electronic correspondence, text messages, security camera footage, and other electronic data.
- Permits compliance with electronic official records for condominiums through applications that can be downloaded to a mobile device
- Specifically voids any provision in a condominium’s governing documents which diminished or infringe upon equal rights protected under the 14th Amendment to the United States Constitution, or those which have a discriminatory effect or otherwise violate equal protection.
- Clarifies that only service on a Condominium Board that occurs on or after July 1, 2018 is used when calculating the Board members term limit for purposes of the eight-year term limit of the statute.
- Removes the blanket prohibition in condominiums against contracts with directors
- Expands upon electronic notice for Homeowners Associations to explicitly permit providing notice via an Association website with a hyperlink included in the required email to those who have consented to receive notice electronically
- Expands upon official records for Homeowners Associations to include electronic or digital records such as emails, text messages, and surveillance video footage
- Removes the requirement that the Association utilize information on the property appraiser’s website for membership meeting notices in Homeowners Associations
- Provides that provisions in a Homeowners Association’s governing documents which violate the equal protection provisions of the 14th amendment are void and unenforceable
As stated above, this is not an exhaustive list and we anticipate additional changes and additions to the proposed legislation as it moves through the legislative process. Please contact our law firm with any questions or concerns and always consult Association legal counsel when in doubt concerning the current state of legislation or your governing documents.