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S1399aa.....................................by COMMERCE AND HUMAN RESOURCES HOMEOWNERS' ASSOCIATION - Adds to existing law to provide for provisions governing homeowners' associations and meetings of the board of directors of the homeowners' association. 02/08 Senate intro - 1st rdg - to printing 02/11 Rpt prt - to Com/HuRes 02/22 Rpt out - to 14th Ord 02/28 Rpt out amen - to engros 02/29 Rpt engros - 1st rdg - to 2nd rdg as amen 03/03 2nd rdg - to 3rd rdg as amen 03/04 Ret'd to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE SENATE SENATE BILL NO. 1399 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO PROPERTY; AMENDING CHAPTER 1, TITLE 55, IDAHO CODE, BY THE ADDI- 3 TION OF A NEW SECTION 55-115, IDAHO CODE, TO DEFINE TERMS, TO PROVIDE PRO- 4 VISIONS GOVERNING A HOMEOWNERS' ASSOCIATION AND MEETINGS OF THE BOARD OF 5 DIRECTORS OF THE HOMEOWNERS' ASSOCIATION AND TO PROVIDE APPLICATION. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Chapter 1, Title 55, Idaho Code, be, and the same is 8 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 9 ignated as Section 55-115, Idaho Code, and to read as follows: 10 55-115. HOMEOWNERS' ASSOCIATION MEETING LAW. (1) As used in this section: 11 (a) "Homeowners' association" means any incorporated or unincorporated 12 association: 13 (i) In which membership is based upon owning or possessing an 14 interest in residential real property; and 15 (ii) That has authority, pursuant to recorded covenants, bylaws or 16 other governing instruments, to assess and record liens against the 17 real property of its members. 18 (b) "Board" means any group of people charged with the duty of governing 19 a homeowners' association. The governing body may be referred to as a 20 "board of directors," "executive board" or similar name. 21 (2) A homeowners' association that is an unincorporated association must 22 be governed by bylaws or covenants which provide at least the provisions set 23 forth herein and, if a corporation, its organic documents shall also provide 24 at least the following provisions: 25 (a) A requirement that the homeowners' association holds at least one (1) 26 meeting each calendar year; 27 (b) A requirement that notice of a meeting of the homeowners' association 28 or its board be published with an agenda and both such notice and agenda 29 shall be timely distributed to all members of the homeowners' association 30 by mail, e-mail, hand delivery, or any other such method agreed upon by 31 the association membership; 32 (c) A requirement that all meetings of the homeowners' association and 33 its board shall be open to its members. The board shall reserve the right 34 to meet in closed, executive session to consult with an attorney relating 35 to proposed or pending litigation, discuss character, alleged misconduct, 36 professional incompetence or related matters of a manager or an employee 37 of the association. Any matter discussed in executive session shall be 38 placed on the agenda of the next scheduled meeting of the association or 39 board; 40 (d) A requirement that any member of the homeowners' association shall be 41 given the opportunity to speak to the homeowners' association or its board 42 on matters germane to the homeowners' association and its actions or 43 inactions, unless the board is meeting in executive session; 2 1 (e) A requirement that special meetings may be called by written petition 2 to the chairperson of the board by fifteen percent (15%) of the member- 3 ship. Special meetings shall be noticed and held within thirty (30) days 4 of delivery of the petition or at the next scheduled meeting, whichever 5 shall first occur; 6 (f) A requirement that the minutes of all homeowners' association meet- 7 ings shall be taken and that copies of the minutes shall be made available 8 to all members within thirty (30) days of the meeting. At a minimum, the 9 minutes shall state the time and place of the meeting, attendance, a sum- 10 mary of the issues discussed and the results of any votes taken; 11 (g) A requirement that a full accounting of finances, including a detail 12 of all income and expenses of the homeowners' association, shall be pro- 13 vided to members at least once a year and that the homeowners' association 14 shall have a method of adopting and amending fees; and 15 (h) A copy of the last financial report of the homeowners' association 16 shall, upon request, be provided to any prospective member of the 17 homeowners' association or any representative or agent of any current or 18 prospective member. 19 (3) In the event the governing instruments fail to incorporate one (1) or 20 more of the foregoing provisions, the omitted provision(s), as set forth in 21 subsection (2) of this section, shall be deemed incorporated as a matter of 22 law. Should the governing instruments contain one (1) or more provisions 23 inconsistent with or at variance with the provisions in subsection (2) of 24 this section, they shall be construed so as to be consistent.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008Moved by Burkett Seconded by Goedde IN THE SENATE SENATE AMENDMENT TO S.B. NO. 1399 1 AMENDMENT TO SECTION 1 2 On page 1 of the printed bill, delete lines 10 through 43 and delete page 3 2 and insert: 4 "55-115. HOMEOWNERS' ASSOCIATION MEETING LAW. (1) As used in this sec- 5 tion: 6 (a) "Homeowners' association" shall have the same meaning as in section 7 45-810(6), Idaho Code. 8 (b) "Board" means the entity that has the duty of governing the associa- 9 tion which may be referred to as the board of directors, executive board 10 or any such similar name. 11 (c) "Member" or "membership" means any person or entity owning or pos- 12 sessing an interest in residential real property or lot within the physi- 13 cal boundaries of an established homeowners' association. 14 (d) "Executive session" means any meeting or part of a meeting of the 15 board of directors which is closed to any member for the deliberation on 16 certain matters. 17 (2) A homeowners' association's organic documents shall include the fol- 18 lowing provisions: 19 (a) A requirement to hold at least one (1) membership meeting each calen- 20 dar year; 21 (b) A requirement that notice of any meeting of the homeowners' associa- 22 tion or its board shall be given at least ten (10) days and no more than 23 sixty (60) days prior to the meeting, which notice shall be distributed to 24 all homeowners' association members by regular mail, electronic mail, 25 hand-delivery or similar method agreed upon by the association membership 26 or as stated in the association's organic documents; 27 (c) A requirement that all meetings of the homeowners' association and 28 its board shall be open to its members; 29 (d) A requirement that any member of the homeowners' association shall be 30 given the opportunity to speak or provide written information at meetings 31 of the homeowners' association board on matters germane to the homeowners' 32 association prior to the board's action or inaction; 33 (e) A requirement that special meetings may be called by written petition 34 to the chairperson of the board by fifteen percent (15%) of the member- 35 ship. Special meetings shall be noticed and held within thirty (30) days 36 of delivery of the petition or at the next scheduled meeting, whichever 37 shall first occur; 38 (f) A requirement that minutes of all homeowners' association meetings 39 shall be taken and that copies of the minutes shall be made available to 40 all members within thirty (30) days of the meeting to members requesting 41 the same. At a minimum, the minutes shall state the time and place of the 42 meeting, attendance, the issues discussed and the results of any votes 43 taken; 2 1 (g) A requirement that a full accounting of finances, including a detail 2 of all income and expenses of the homeowners' association, shall be pro- 3 vided to any member requesting the same at least once a year, or upon 4 request to a party holding a contract to purchase a subject home from a 5 member; and 6 (h) A copy of the last financial report of the homeowners' association 7 shall, upon request, be provided to any prospective member of the 8 homeowners' association or any representative or agent of any current or 9 prospective member. 10 (3) In the event the governing instruments fail to incorporate one (1) or 11 more of the foregoing provisions, the omitted provision(s), as set forth in 12 subsection (2) of this section, shall be deemed incorporated as a matter of 13 law. Should the governing instruments contain one (1) or more provisions 14 inconsistent with or at variance with the provisions in subsection (2) of this 15 section, they shall be construed so as to be consistent with this section. 16 (4) Notwithstanding the provisions of this section, the board may meet in 17 executive session only upon majority vote of the board that extraordinary cir- 18 cumstances justify an executive session. Executive sessions may be held only 19 to the extent necessary to consider litigation or pending litigation or to 20 consider personnel decisions involving an employee or contractor. An executive 21 session shall not be held for the purpose of taking any action or making any 22 decision and no votes or official action may be taken. 23 (5) Unless otherwise provided by the association's organic documents, 24 ministerial acts may be taken by the association's officers or board members, 25 subject to a duty to report all such acts at the next meeting of the board or 26 association.".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE SENATE SENATE BILL NO. 1399, As Amended BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO PROPERTY; AMENDING CHAPTER 1, TITLE 55, IDAHO CODE, BY THE ADDI- 3 TION OF A NEW SECTION 55-115, IDAHO CODE, TO DEFINE TERMS, TO PROVIDE PRO- 4 VISIONS GOVERNING A HOMEOWNERS' ASSOCIATION AND MEETINGS OF THE BOARD OF 5 DIRECTORS OF THE HOMEOWNERS' ASSOCIATION AND TO PROVIDE APPLICATION. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Chapter 1, Title 55, Idaho Code, be, and the same is 8 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 9 ignated as Section 55-115, Idaho Code, and to read as follows: 10 55-115. HOMEOWNERS' ASSOCIATION MEETING LAW. (1) As used in this section: 11 (a) "Homeowners' association" shall have the same meaning as in section 12 45-810(6), Idaho Code. 13 (b) "Board" means the entity that has the duty of governing the associa- 14 tion which may be referred to as the board of directors, executive board 15 or any such similar name. 16 (c) "Member" or "membership" means any person or entity owning or pos- 17 sessing an interest in residential real property or lot within the physi- 18 cal boundaries of an established homeowners' association. 19 (d) "Executive session" means any meeting or part of a meeting of the 20 board of directors which is closed to any member for the deliberation on 21 certain matters. 22 (2) A homeowners' association's organic documents shall include the fol- 23 lowing provisions: 24 (a) A requirement to hold at least one (1) membership meeting each calen- 25 dar year; 26 (b) A requirement that notice of any meeting of the homeowners' associa- 27 tion or its board shall be given at least ten (10) days and no more than 28 sixty (60) days prior to the meeting, which notice shall be distributed to 29 all homeowners' association members by regular mail, electronic mail, 30 hand-delivery or similar method agreed upon by the association membership 31 or as stated in the association's organic documents; 32 (c) A requirement that all meetings of the homeowners' association and 33 its board shall be open to its members; 34 (d) A requirement that any member of the homeowners' association shall be 35 given the opportunity to speak or provide written information at meetings 36 of the homeowners' association board on matters germane to the homeowners' 37 association prior to the board's action or inaction; 38 (e) A requirement that special meetings may be called by written petition 39 to the chairperson of the board by fifteen percent (15%) of the member- 40 ship. Special meetings shall be noticed and held within thirty (30) days 41 of delivery of the petition or at the next scheduled meeting, whichever 42 shall first occur; 43 (f) A requirement that minutes of all homeowners' association meetings 2 1 shall be taken and that copies of the minutes shall be made available to 2 all members within thirty (30) days of the meeting to members requesting 3 the same. At a minimum, the minutes shall state the time and place of the 4 meeting, attendance, the issues discussed and the results of any votes 5 taken; 6 (g) A requirement that a full accounting of finances, including a detail 7 of all income and expenses of the homeowners' association, shall be pro- 8 vided to any member requesting the same at least once a year, or upon 9 request to a party holding a contract to purchase a subject home from a 10 member; and 11 (h) A copy of the last financial report of the homeowners' association 12 shall, upon request, be provided to any prospective member of the 13 homeowners' association or any representative or agent of any current or 14 prospective member. 15 (3) In the event the governing instruments fail to incorporate one (1) or 16 more of the foregoing provisions, the omitted provision(s), as set forth in 17 subsection (2) of this section, shall be deemed incorporated as a matter of 18 law. Should the governing instruments contain one (1) or more provisions 19 inconsistent with or at variance with the provisions in subsection (2) of this 20 section, they shall be construed so as to be consistent with this section. 21 (4) Notwithstanding the provisions of this section, the board may meet in 22 executive session only upon majority vote of the board that extraordinary cir- 23 cumstances justify an executive session. Executive sessions may be held only 24 to the extent necessary to consider litigation or pending litigation or to 25 consider personnel decisions involving an employee or contractor. An executive 26 session shall not be held for the purpose of taking any action or making any 27 decision and no votes or official action may be taken. 28 (5) Unless otherwise provided by the association's organic documents, 29 ministerial acts may be taken by the association's officers or board members, 30 subject to a duty to report all such acts at the next meeting of the board or 31 association.
STATEMENT OF PURPOSE
RS 17734C2
In Idaho there are nearly 2,500 homeowners' associations
(HOAs). They are typically organized as membership non-profit
corporations or unincorporated associations. Some 40 states have
enacted or are considering legislation to clarify the
relationship between the HOA and its members. This bill
establishes in Title 55 minimum standards for the conduct of
meetings, preparation of minutes, and the rights of individual
members, in particular their property rights. These provisions
become operative only if the existing bylaws or CC&Rs do not meet
these minimum standards.
FISCAL IMPACT
None
*
Contact
Name: Aaron Hedges
Senator Andreason Rep. Killen
Senator Burkett
Phone: 859-2276
STATEMENT OF PURPOSE/FISCAL NOTE S 1399