Summary of my proposals for HOA regulation for single family homes and townhomes:
1) Every 4 years HOAs must conduct a renewal vote. At least 40% of members must actively vote to extend the CC&Rs (meaning that at least 40% of homeowners must a cast a vote in favor of continuing the HOA. Not voting is effectively a no-vote). Upon a vote resulting in the dissolution of the HOA and/or CC&Rs, the HOA executive board shall conduct a second vote 6 months from that date to validate the result under the same conditions. If an entity owns or controls more than 1 property, they shall be restricted to a single vote (meaning that property developers or multi-property owners only get one vote.)
1a) If HOA vote fails, it will continue for one year and conduct another vote. If that fails, the HOA will be dissolved. If the HOA owns community property, it will convert into a property maintenance organization and be able to collect funds solely to fund the maintenance of community property. It will not be able to levy fines or restrict individual properties in anymore.
1b) PMOs may re-adopt a new set of CC&Rs. To do so, a petition must collect the signatures of 60% of property owners within a 6 month period. They PMO must then notify all property owners of an election. 75% of property owners must agree to reformation of CC&Rs.
2) HOAs and property maintenance organizations (PMO) may not begin foreclosure proceedings on a property until the amount owed is at least 1/5 of the value assessed by the county. HOAs must follow the same procedures as the county government for foreclosure, with additional requirements listed below.
3) HOAs and PMOs must collect phone and email information for property owners, unless the property owners opt out. The HOA must remind property owners annually to update their contact information.
4) Notices of delinquency must be sent to all available contacts.
5) If properties are in arrears by more than 3 months the HOA/PMO must post notice on the property physically (not just mail). After 1 more month, and only if necessary for the maintenance of community property, the HOA/PMO may seek and be granted a tax lien to borrow against on the delinquent accounts. Notices must continue to be sent to all available contact mechanisms and posted on the property monthly
6) The HOA/PMO shall have a fiduciary duty to act in the best interest of both the HOA/PMO and the individual delinquent member. In the case of a foreclosure, they must seek the highest price possible, not just enough to cover the delinquency.
Comments
Summary of my proposals for HOA regulation for single family homes and townhomes:
1) Every 4 years HOAs must conduct a renewal vote. At least 40% of members must actively vote to extend the CC&Rs (meaning that at least 40% of homeowners must a cast a vote in favor of continuing the HOA. Not voting is effectively a no-vote). Upon a vote resulting in the dissolution of the HOA and/or CC&Rs, the HOA executive board shall conduct a second vote 6 months from that date to validate the result under the same conditions. If an entity owns or controls more than 1 property, they shall be restricted to a single vote (meaning that property developers or multi-property owners only get one vote.)
1a) If HOA vote fails, it will continue for one year and conduct another vote. If that fails, the HOA will be dissolved. If the HOA owns community property, it will convert into a property maintenance organization and be able to collect funds solely to fund the maintenance of community property. It will not be able to levy fines or restrict individual properties in anymore.
1b) PMOs may re-adopt a new set of CC&Rs. To do so, a petition must collect the signatures of 60% of property owners within a 6 month period. They PMO must then notify all property owners of an election. 75% of property owners must agree to reformation of CC&Rs.
2) HOAs and property maintenance organizations (PMO) may not begin foreclosure proceedings on a property until the amount owed is at least 1/5 of the value assessed by the county. HOAs must follow the same procedures as the county government for foreclosure, with additional requirements listed below.
3) HOAs and PMOs must collect phone and email information for property owners, unless the property owners opt out. The HOA must remind property owners annually to update their contact information.
4) Notices of delinquency must be sent to all available contacts.
5) If properties are in arrears by more than 3 months the HOA/PMO must post notice on the property physically (not just mail). After 1 more month, and only if necessary for the maintenance of community property, the HOA/PMO may seek and be granted a tax lien to borrow against on the delinquent accounts. Notices must continue to be sent to all available contact mechanisms and posted on the property monthly
6) The HOA/PMO shall have a fiduciary duty to act in the best interest of both the HOA/PMO and the individual delinquent member. In the case of a foreclosure, they must seek the highest price possible, not just enough to cover the delinquency.