2002 Legislation
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SENATE BILL NO. 1326 – Liens, homeowners assn

SENATE BILL NO. 1326

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Daily Data Tracking History



S1326aaH...................................by LOCAL GOVERNMENT AND TAXATION
LIENS - HOMEOWNER'S ASSOCIATIONS - Adds to existing law to provide for the
recording and enforcement of liens by homeowner's associations.
                                                                        
01/24    Senate intro - 1st rdg - to printing
01/25    Rpt prt - to Loc Gov
01/31    Rpt out - rec d/p - to 2nd rdg
02/01    2nd rdg - to 3rd rdg
02/04    3rd rdg - PASSED - 26-7-2
      AYES -- Andreason, Boatright, Brandt, Bunderson, Burtenshaw, Cameron,
      Deide, Dunklin, Frasure, Geddes, Goedde, Hill, Ipsen, King-Barrutia,
      Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Sorensen,
      Stegner, Stennett, Thorne(Thorne), Wheeler,
      NAYS -- Branch(Bartlett), Darrington, Hawkins, Keough, Schroeder,
      Sims, Williams
      Absent and excused -- Davis, Ingram
    Floor Sponsor - Goedde
    Title apvd - to House
02/05    House intro - 1st rdg - to Loc Gov
02/27    Rpt out - to Gen Ord
03/05    Rpt out amen - to 1st rdg as amen
03/06    1st rdg - to 2nd rdg as amen
03/07    2nd rdg - to 3rd rdg as amen
03/08    3rd rdg - PASSED - 48-10-12
      AYES -- Aikele, Barraclough, Bell, Bieter, Black, Block, Boe, Bolz,
      Bradford, Bruneel, Callister, Collins, Crow, Cuddy, Deal, Ellis,
      Ellsworth, Eskridge, Field(13), Field(20), Gagner, Hadley, Hammond,
      Harwood, Henbest, Higgins, Jaquet, Kellogg(Duncan), Kunz, Langford,
      Martinez, Meyer, Pischner, Pomeroy, Ridinger, Roberts, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith(33), Smith(23), Smylie, Stevenson,
      Stone, Trail, Mr. Speaker
      NAYS -- Bedke, Denney, Lake, Loertscher, Mader, McKague, Moyle,
      Pearce, Tilman, Wood.
      Absent and excused -- Barrett, Campbell, Clark, Gould, Hornbeck,
      Jones, Kendell, Montgomery, Mortensen, Raybould, Wheeler, Young
    Floor Sponsor - Bieter
    Hld for reconsideration - to Gen Ord
03/11    Rpt out w/o rec - to 2nd rdg
    2nd rdg - to 3rd rdg as amen
03/12    3rd rdg as amen - PASSED - 53-13-4
      AYES -- Barraclough, Bedke, Bell, Bieter, Black, Block, Boe, Bolz,
      Bradford, Callister, Campbell, Clark, Collins, Crow, Deal, Ellis,
      Ellsworth, Eskridge, Field(13), Field(20), Gagner, Gould, Hadley,
      Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones, Kellogg,
      Kunz, Lake, Martinez, Meyer, Montgomery, Mortensen, Pischner,
      Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali, Sellman,
      Shepherd, Smith(33), Smith(23), Smylie, Stevenson, Stone, Trail, Mr.
      Speaker
      NAYS -- Barrett, Denney, Kendell, Langford, Loertscher, Mader,
      McKague, Moyle, Pearce, Schaefer, Tilman, Wheeler, Wood
      Absent and excused -- Aikele, Bruneel, Cuddy, Young
    Floor Sponsor - Bieter
    Title apvd - to Senate
03/13    Senate concurred in House amens - to engros
    Rpt engros - 1st rdg - to 2nd rdg as amen
03/14    2nd rdg - to 3rd rdg as amen
03/15    3rd rdg as amen - PASSED - 26-3-6
      AYES -- Andreason, Boatright, Branch Bunderson, Burtenshaw, Cameron,
      Darrington, Davis, Deide, Dunklin, Goedde, Hill, Ingram, Ipsen,
      King-Barrutia, Little, Lodge, Marley, Richardson, Risch, Sandy,
      Sorensen, Stennett, Thorne, Wheeler, Williams
      NAYS -- Keough, Schroeder, Sims
      Absent and excused -- Brandt, Frasure, Geddes, Hawkins, Noh, Stegner
    Floor Sponsor - Goedde
    Title apvd - to enrol
    Rpt enrol - Pres signed
03/15    Sp signed - to Governor
03/26    Governor signed
         Session Law Chapter 275
         Effective: 07/01/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1326
                                                                        
                         BY LOCAL GOVERNMENT AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO HOMEOWNER'S ASSOCIATIONS; AMENDING  CHAPTER  8,  TITLE  45,  IDAHO
  3        CODE,  BY THE ADDITION OF A NEW SECTION 45-810, IDAHO CODE, TO PROVIDE FOR
  4        LIENS BY HOMEOWNER'S ASSOCIATIONS, TO SPECIFY ENFORCEABLE ASSESSMENTS,  TO
  5        PROVIDE  FOR  ACTIONS  TO  RECOVER  UNPAID SUMS AND TO DEFINE "HOMEOWNER'S
  6        ASSOCIATION."
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Chapter 8, Title 45, Idaho Code,  be,  and  the  same  is
  9    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 10    ignated as Section 45-810, Idaho Code, and to read as follows:
                                                                        
 11        45-810.  HOMEOWNER'S ASSOCIATION LIENS. (1) Whenever a homeowner's associ-
 12    ation levies any assessment against a lot,  the  association,  upon  complying
 13    with subsection (2) of this section, shall have a lien upon the individual lot
 14    for  any  unpaid  assessments and interest accrued in the previous twelve (12)
 15    months.
 16        (2)(a)  An association claiming a lien under subsection (1) of  this  sec-
 17        tion  shall  file  in  the county in which the lot or some part thereof is
 18        located a claim containing:
 19             (i)   A true statement of the amount due for the  unpaid  assessments
 20             after deducting all just credits and offsets;
 21             (ii)  The name of the owner, or reputed owner, if known;
 22             (iii) The name of the association; and
 23             (iv)  A  description,  sufficient for identification, of the property
 24             to be charged with the lien.
 25        (b)  When a claim has been filed and recorded pursuant to this section and
 26        the owner of the lot subject to the claim  thereafter  fails  to  pay  any
 27        assessment  chargeable  to  such  lot, then so long as the original or any
 28        subsequent unpaid assessment remains unpaid, such  claim  shall  automati-
 29        cally  accumulate  the  subsequent unpaid assessments and interest thereon
 30        without the necessity of further filings under this section.
 31        (c)  The claim shall be verified by  the  oath  of  an  individual  having
 32        knowledge  of  the facts and shall be recorded by the county recorder. The
 33        record shall be indexed as other liens are required by law to be indexed.
 34        (d)  Within twenty-four (24) hours after recording a lien on the property,
 35        the association shall serve, by personal delivery to the owner or  reputed
 36        owner  or  by  certified  mail  to  the last known address of the owner or
 37        reputed owner, a true and correct copy of the recorded lien.
 38        (3)  The lien may be continued in force for a period of time not to exceed
 39    one (1) year from the date the claim is filed and  recorded  under  subsection
 40    (2) of this section; provided however, that such period may be extended by the
 41    homeowner's association for not to exceed one (1) additional year by recording
 42    a written extension thereof. For the purpose of determining the date the claim
 43    is  filed  in  those cases when subsequent unpaid assessments have accumulated
                                                                        
                                           2
                                                                        
  1    under the claim as provided in subsection  (2)  of  this  section,  the  claim
  2    regarding  each  unpaid  assessment  shall be deemed to have been filed at the
  3    time such unpaid assessment became due. The lien may be enforced by the  board
  4    of directors acting on behalf of the association.
  5        (4)  Unless  the declaration or bylaws of the homeowner's association pro-
  6    vide  otherwise, fees, late charges, fines and interest imposed  are  enforce-
  7    able as assessments under this section.
  8        (5)  This  section does not prohibit a homeowner's association from pursu-
  9    ing an action to recover sums for which subsection (1) of this section creates
 10    a lien or from taking a deed in lieu of foreclosure  in  satisfaction  of  the
 11    lien.
 12        (6)  An  action  to recover a money judgment for unpaid assessments may be
 13    maintained without foreclosing or waiving the  lien  securing  the  claim  for
 14    unpaid  assessments.  However,  recovery on the action operates to satisfy the
 15    lien, or the portion thereof, for which recovery is made.
 16        (7)  As used in this section, "homeowner's association" means any incorpo-
 17    rated or unincorporated association:
 18        (a)  In which membership is based upon owning or possessing an interest in
 19        real property; and
 20        (b)  That has the authority, pursuant to  recorded  covenants,  bylaws  or
 21        other  governing  instruments, to assess and record liens against the real
 22        property of its members.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                                     Moved by    Bieter              
                                                                        
                                                     Seconded by Callister           
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO S.B. NO. 1326
                                                                        
  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the printed bill, delete lines  12  through  15  and  insert:
  3    "ation levies an assessment against a lot for the reasonable costs incurred in
  4    the  maintenance  of  common areas consisting of real property owned and main-
  5    tained by the association, the association, upon complying with subsection (2)
  6    of this section, shall have a lien upon the individual  lot  for  such  unpaid
  7    assessments  accrued  in the previous twelve (12) months."; in line 29, delete
  8    "and interest thereon"; on page 2, delete lines 5 through 7; in line 8, delete
  9    "(5)" and insert: "(4)"; in line 12, delete "(6)" and insert: "(5)";  in  line
 10    16, delete "(7)" and insert: "(6)"; and following line 22, insert:
 11        "(7)  In  order  to file a lien as provided in this section, a homeowner's
 12    association that is an unincorporated association must be governed  by  bylaws
 13    which provide for at least the following:
 14        (a)  A  requirement that the homeowner's association hold at least one (1)
 15        meeting each calendar year;
 16        (b)  A requirement that notice of any meeting of the homeowner's  associa-
 17        tion  be published and distributed to all members of the homeowner's asso-
 18        ciation;
 19        (c)  A requirement that the minutes of all homeowner's  association  meet-
 20        ings be recorded;
 21        (d)  A method of adopting and amending fees; and
 22        (e)  A  provision providing that no fees or assessments of the homeowner's
 23        association may be increased unless a  majority  of  all  members  of  the
 24        homeowner's association vote in favor of such increase.".
                                                                        
 25                                 CORRECTIONS TO TITLE
 26        On  page  1,  in  line 4, delete "TO SPECIFY ENFORCEABLE ASSESSMENTS,"; in
 27    line 5,  delete  "AND"  and  insert:  ",";  and  delete  line  6  and  insert:
 28    "ASSOCIATION" AND TO PROVIDE THAT HOMEOWNER'S ASSOCIATIONS THAT ARE UNINCORPO-
 29    RATED  ASSOCIATIONS  MUST  BE  GOVERNED  BY  CERTAIN  BYLAWS  IN ORDER TO FILE
 30    LIENS.".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                       SENATE BILL NO. 1326, As Amended in the House
                                                                        
                         BY LOCAL GOVERNMENT AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO HOMEOWNER'S ASSOCIATIONS; AMENDING  CHAPTER  8,  TITLE  45,  IDAHO
  3        CODE,  BY THE ADDITION OF A NEW SECTION 45-810, IDAHO CODE, TO PROVIDE FOR
  4        LIENS BY HOMEOWNER'S ASSOCIATIONS,  TO  PROVIDE  FOR  ACTIONS  TO  RECOVER
  5        UNPAID  SUMS,  TO  DEFINE  "HOMEOWNER'S  ASSOCIATION"  AND TO PROVIDE THAT
  6        HOMEOWNER'S ASSOCIATIONS THAT ARE UNINCORPORATED ASSOCIATIONS MUST BE GOV-
  7        ERNED BY CERTAIN BYLAWS IN ORDER TO FILE LIENS.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION 1.  That Chapter 8, Title 45, Idaho Code,  be,  and  the  same  is
 10    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 11    ignated as Section 45-810, Idaho Code, and to read as follows:
                                                                        
 12        45-810.  HOMEOWNER'S ASSOCIATION LIENS. (1) Whenever a homeowner's associ-
 13    ation levies an assessment against a lot for the reasonable costs incurred  in
 14    the  maintenance  of  common areas consisting of real property owned and main-
 15    tained by the association, the association, upon complying with subsection (2)
 16    of this section, shall have a lien upon the individual  lot  for  such  unpaid
 17    assessments accrued in the previous twelve (12) months.
 18        (2)(a)  An  association  claiming a lien under subsection (1) of this sec-
 19        tion shall file in the county in which the lot or  some  part  thereof  is
 20        located a claim containing:
 21             (i)   A  true  statement of the amount due for the unpaid assessments
 22             after deducting all just credits and offsets;
 23             (ii)  The name of the owner, or reputed owner, if known;
 24             (iii) The name of the association; and
 25             (iv)  A description, sufficient for identification, of  the  property
 26             to be charged with the lien.
 27        (b)  When a claim has been filed and recorded pursuant to this section and
 28        the  owner  of  the  lot  subject to the claim thereafter fails to pay any
 29        assessment chargeable to such lot, then so long as  the  original  or  any
 30        subsequent  unpaid  assessment  remains unpaid, such claim shall automati-
 31        cally accumulate the subsequent unpaid assessments  without the  necessity
 32        of further filings under this section.
 33        (c)  The  claim  shall  be  verified  by  the oath of an individual having
 34        knowledge of the facts and shall be recorded by the county  recorder.  The
 35        record shall be indexed as other liens are required by law to be indexed.
 36        (d)  Within twenty-four (24) hours after recording a lien on the property,
 37        the  association shall serve, by personal delivery to the owner or reputed
 38        owner or by certified mail to the last  known  address  of  the  owner  or
 39        reputed owner, a true and correct copy of the recorded lien.
 40        (3)  The lien may be continued in force for a period of time not to exceed
 41    one  (1)  year  from the date the claim is filed and recorded under subsection
 42    (2) of this section; provided however, that such period may be extended by the
 43    homeowner's association for not to exceed one (1) additional year by recording
                                                                        
                                           2
                                                                        
  1    a written extension thereof. For the purpose of determining the date the claim
  2    is filed in those cases when subsequent unpaid  assessments  have  accumulated
  3    under  the  claim  as  provided  in  subsection (2) of this section, the claim
  4    regarding each unpaid assessment shall be deemed to have  been  filed  at  the
  5    time  such unpaid assessment became due. The lien may be enforced by the board
  6    of directors acting on behalf of the association.
  7        (4)  This section does not prohibit a homeowner's association from  pursu-
  8    ing an action to recover sums for which subsection (1) of this section creates
  9    a  lien  or  from  taking a deed in lieu of foreclosure in satisfaction of the
 10    lien.
 11        (5)  An action to recover a money judgment for unpaid assessments  may  be
 12    maintained  without  foreclosing  or  waiving  the lien securing the claim for
 13    unpaid assessments. However, recovery on the action operates  to  satisfy  the
 14    lien, or the portion thereof, for which recovery is made.
 15        (6)  As used in this section, "homeowner's association" means any incorpo-
 16    rated or unincorporated association:
 17        (a)  In which membership is based upon owning or possessing an interest in
 18        real property; and
 19        (b)  That  has  the  authority,  pursuant to recorded covenants, bylaws or
 20        other governing instruments, to assess and record liens against  the  real
 21        property of its members.
 22        (7)  In  order  to  file a lien as provided in this section, a homeowner's
 23    association that is an unincorporated association must be governed  by  bylaws
 24    which provide for at least the following:
 25        (a)  A  requirement that the homeowner's association hold at least one (1)
 26        meeting each calendar year;
 27        (b)  A requirement that notice of any meeting of the homeowner's  associa-
 28        tion  be published and distributed to all members of the homeowner's asso-
 29        ciation;
 30        (c)  A requirement that the minutes of all homeowner's  association  meet-
 31        ings be recorded;
 32        (d)  A method of adopting and amending fees; and
 33        (e)  A  provision providing that no fees or assessments of the homeowner's
 34        association may be increased unless a  majority  of  all  members  of  the
 35        homeowner's association vote in favor of such increase.

Statement of Purpose / Fiscal Impact


                        STATEMENT OF PURPOSE

                               RS 11723

      
An Idaho county was asked to record a claim of lien against 4 IRS 
agents, a department of justice attorney, and an Army Corp of 
Engineers employee in the amount of $16,589,892. The county clerk 
refused because he could find no Idaho statute that required or 
authorized the filing. A court subsequently agreed. Since that time, 
the county has refused to record any liens not found in code. 
While several other associations like homeowners associations 
are referenced in code, homeowners associations are not. This 
proposal would put homeowners associations on the same legal basis 
as condominium associations.


                      FISCAL IMPACT

None



Contact
Name:	John Goedde
Phone:	332-1355

STATEMENT OF PURPOSE/FISCAL NOTE		S 1326