By Mark Foster |
Lynn and I are keeping an eye on the HOA legislation that is moving through the House and Senate. As many of you know, we were at the House hearing of the Bill (HF1268) to provide testimony regarding the proposed legislation earlier this week.
While there are some good parts of the bill, others give us pause, and we’ll be discussing them at upcoming chapter meetings this month. In the meantime, we scrub the net to look for updates and news related to the bills, and one of the authors/sponsors of the Senate Bill (SF1750), Eric Lucero, wrote a letter to the editor for local newspapers that is gaining some printed traction. Below, he writes:
For many months, homeowners from across our community and state have been reaching out to me sharing stories of exploitation and power-imbalance they’ve experienced with their homeowners associations (HOAs) and property management companies.
Feedback I’ve received includes outrageous fines for minor infractions; surprise fees with no explanation; management companies operating with little transparency; and, worst of all, people facing foreclosure and losing their homes over disputes that never should have escalated to the point they did.
The system is broken. It is time for HOA reform.
Reform? Better oversight, maybe, but legislative reform that results in increased HOA fees and even more obstacles for residents to volunteer on boards are not what anyone had in mind. He continues:
The more than 40 recommendations from the HOA/CIC working group share a common theme: HOAs must be accountable to the people they serve. No more backroom decisions. No more financial secrecy. No more abusive fines and fees.
Bill SF 1750 will require financial transparency so homeowners can see exactly where their money is going.
Provisions in the bill include a framework for setting fair limits on fines and fees ensuring no one loses their home over a minor dispute; requiring disclosures and competitive bids for HOA contracts to prevent conflicts of interest; creating a dispute resolution process so homeowners don’t have to spend thousands of dollars to fight unfair treatment.
We are all for accountability, transparency and reductions in conflict of interest. But any regulation that impedes the boards’ ability to properly govern or recoup losses from delinquent homeowners is a non-starter.
Finally, he says:
HOAs exist to serve homeowners, not control them. Too many Minnesotans have suffered under the heavy hand of unaccountable HOAs. This reform bill is a step toward fairness, transparency and common sense.
Sincerely, State Sen. Eric Lucero, District 30
There is much to be concerned about, and much to cover. We continue to monitor this legislation. Please attend one of our March chapter meetings for more.
