Around 30% of all homeowners in the United States live in some type of common-interest housing governed by a community or homeowners association. This can include condos, co-ops, HOA communities, timeshares or mobile home parks. That's roughly 75.5 million people who are required to follow specific HOA rules and regulations for their state or community.
Many homeowners buying into an HOA assume the bylaws and rules and regulations they receive at the time of purchase will govern their homes throughout their tenure in the community. However, HOA laws undergo regular updates and operate on a state-by-state basis. Residents must stay informed about changes and new rules.
Here are some guidelines about why, when and how changes are made within HOA communities, and a look at what's changed for 2024 that homeowners should know.
When HOA Changes Are Made
HOA changes are made at a state level on an annual basis. Texas is the only state to make its HOA changes every other year.
"State lawmakers look at constituent concerns and review operational deficiencies within the state HOAs to make necessary improvements to the existing laws," says Travis Moore, a consultant for FirstService Residential in St. Petersburg, Florida.
"Typically, legislation passes one, maybe two bills a year, which typically combine pieces of different HOA bills," he says. "For example, if three bills are brought to legislation – let's say an ordinance on flags, clotheslines and vegetable gardens – eventually, they will combine many of these past bills to simplify the language and include it in a larger, more encompassing bill."
A lot of these changes seem small, but they can include major changes for HOAs to abide by within the state regarding zoning, insurance requirements, notification requirements by the HOA, allowance of short-term rentals and governance requirements.
Big HOA Changes in 2024
States with high rates of HOA ownership, like Florida, Texas and California, have made some notable changes over the last year.
Florida is of particular note because it has more community associations, condos, co-ops, timeshares, mobile home parks and HOAs than any other state. "Since Florida statutes have been around for so long, it's often used as a bellwether for implementing HOA laws elsewhere," Moore says.
Here are a few of the 2024 changes.
Florida
Florida passed the Florida Homeowners Association Act in October 2023. Often referred to as the "Homeowners Association Bill of Rights," the statute improves transparency between board members and residents while raising the standard for operation. Hunter Faulkner, partner and real estate attorney at Jimerson Birr in Jacksonville, Florida, explains the bill's key changes.
- Disclosure and notices: The statute now requires an agenda and notice of every upcoming meeting to be provided to members. This helps members become more informed about what will be discussed and join in if they'd like to vote on a particular issue. "Notice requirements, if an HOA member is fined for anything, now must be very detailed and follow a specific timeline," Faulkner says.
- Requirements for HOA board members: HOA board members are fiduciary officers of the HOA. "If there is any HOA board member that contracts with a third party that they have a financial interest in, it must be disclosed to the board so the members can discuss if there is anything financially impermissible happening," says Faulkner.
- Minimizing possibilities of fraudulent voting: This bill has strong guidance and laws about what will be considered fraudulent voting activities and the subsequent punishment. In Florida, legislators identified six criteria for what would be considered fraudulent voting by members and board members. They also outlined potential criminal misdemeanor charges.
California
California had some notable changes this year. Now board meetings can happen by teleconference and board members can be elected or voted upon by the use of electronic ballots. The state continued a regulation that prohibits the use of potable drinking water on nonfunctional turf in HOAs to control the ongoing drought in California.
A bigger change limits HOA fee increases on deed-restricted affordable housing units. No increase can exceed 5% of the change in cost of living or previous assessment in a given year. Also, multifamily units with more than three housing units are required to have all raised elements, such as balconies, inspected annually.
Texas
House Bill 614 went into effect on Jan. 1, 2024. The goal of this bill is to increase transparency and help balance the power between HOA board members and residents. It follows Florida's governance on requiring more clear notices for meetings, agendas and fines that can be imposed.
The potential fines for too-tall grass or unauthorized items in your yard, for example, will be more clearly stated by category with fee rates. These rates must be distributed to residents by email, by hand or maintained on the HOA website.
How to Be Informed of HOA Changes
HOA boards are required to tell their residents about these changes when enacted. "If you receive any mail or emails from your association, don't just throw it in the trash or delete it – read it, because they are required to disclose changes like these," Faulkner says.
If you feel you haven't been informed properly by your HOA, contact them to let them know they must communicate changes to the residents. If you want to take your knowledge a step further, you can do a simple Google search to see if there are recent changes in your area. "Most states will have attorneys who specialize in HOA laws and will write blogs about changes that are happening," says Faulkner.
There are also associations, like the Community Association Institute (CAI), which publish bills proposed and passed state by state. Most HOAs are following the rules and will notify you of annual changes, but be watchful for notices from your HOA board. If you want to be a part of the change-making process, make sure to attend the meetings or run to serve on the board yourself.
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Source: realestate.usnews.com
