New HOA Laws In 2023

There are several laws introduced on a regular basis that would apply to homeowners associations. This 2023, here are the new HOA laws to know.

New HOA Laws to Know About This 2023

Apart from the governing documents, homeowners associations also answer to state law. Every now and then, states will pass new laws that affect these HOAs. For 2023, new HOA laws have been enacted for Arizona, California, Florida, Hawaii, Illinois, Maryland, Missouri, Nevada, and Pennsylvania.

Arizona

The new Arizona state laws in 2023 include the following:

Right to Fly Flags

House Bill 2010 gives homeowners the right to fly flags that support the country, military, first responders, and law enforcement. This is effective even if the HOA has its own rules saying otherwise.

Ban on Non-Functional Grass

Although not yet passed, there is a proposal in Tucson that considers prohibiting the planting of non-functional grass in homeowners associations. This is in an effort to reduce water usage.

California

The new California state laws in 2023 include the following:

HOA Matters Discussed on Social Media

Assembly Bill 1410 amends the list of protected free speech activities to include discussions of HOA matters on social media. According to the amendment, an association’s governing documents can’t ban the use of social media or other online channels to talk about association issues, including legislation and elections.

It also disallows any forms of retaliation against owners who talk about the HOA online. It is worth noting, though, that this doesn’t mean HOAs should maintain an online forum or social media presence.

No Enforcement Actions During Emergencies

Civil Code Section 5875, a new section in the Davis-Stirling Act, makes it illegal for associations to carry out any enforcement actions during times of declared emergencies (if the emergency would prevent an owner from rectifying the violation). The only exception is the enforcement of dues payment.

Electronic Communications

Another new law is an amendment to Civil Code Section 4040, which states that the HOA must deliver a document according to the delivery method the owner prefers. Owners may request to receive communications via electronic means.

Florida

The new Florida state laws in 2023 include the following:

Condominium Building Reporting System

Senate Bill 4-D, which was signed in May 2022, requires condominiums to undergo certain safety procedures and set up reserve accounts. The bill came to fruition as a response to the tragic Surfside condominium collapse, though most of its provisions aren’t set to take effect until 2024.

That said, condominiums with at least 3 stories must have performed a simple task by January 1, 2023. This task involves condos giving some basic information to the Department of Business and Professional Regulation in Florida. Condos can also get started on completing the Building Reporting Form.

Hawaii

The new Hawaii state laws in 2023 include the following:

Amending Condo Declarations

Unless owners amend the declaration to require a higher percentage, condo declarations can be amended with a 67% vote of approval from owners. Additionally, declarations may be amended by written consent.

Reserve Contributions in Public Reports

Developers must give condo unit buyers a public report that includes all information about the building prior to their purchase. This report usually includes a budget and an estimate of maintenance fees the owner will pay in the future. However, it doesn’t include reserve contribution estimates. According to the new law, developers must now include an estimate of reserve contributions in the public report.

Petitions to Amend Bylaws; Special Meetings

Currently, owners can submit a petition outside of an HOA meeting to amend the bylaws. The new Hawaii laws add more requirements to this. The first requirement is that owners who sign the petition must also write the date they signed. And the second requirement stipulates that owners must submit the petition within 120 days of the first signature to be considered valid.

The same two requirements have been added when owners wish to request a special meeting.

Electronic Voting and Meetings

The new HOA laws in Hawaii also tack on additional requirements for electronic voting procedures. The amendments are as follows:

“(3)       For any electronic, machine, or mail voting for which notice of voting has been sent; provided that the electronic, machine, or mail voting deadline is within sixty days of the date the notice was first sent;

(4)       Whenever approved in advance by:

(A)       Written consent of a majority of unit owners; or

(B)       Majority vote at an association meeting; or

[(3)] (5)    Whenever otherwise authorized in an association’s declaration or bylaws.

The association shall implement reasonable measures to verify that each person permitted to vote is a member of the association or proxy of a member.

As used in this subsection, “mail voting” includes sending or receiving written ballots via mail, courier, or electronic transmission; provided that the transmission is a complete reproduction of the original.”

Approval of Minutes

There is no longer a deadline for approving association minutes. In the past, the deadline was 60 days after the meeting if the owners authorized the board to provide approval.

Owners Attending Board Meetings

Every new board no longer needs to establish owner participation rules during board meetings. They will remain in effect even with the new board. Notification is only necessary if there is a change to those rules. The new law also allows the board to share these rules on the HOA’s website.

Reserve Study Requirements

The new law clarifies that an “independent reserve study preparer” must be the one to review reserve studies. Additionally, it provides a timeframe requirement for reserve study reviews and updates. According to the amendment, associations must have their studies updated at least every three (3) years. For reserve studies that use a “cash flow plan,” the projection must be based on a minimum of 30 years instead of 20 years.

Illinois

The new Illinois state laws in 2023 include the following:

Disclosures and Fees for Documents

House Bill 5246 amends the Condominium Property Act. According to the newly enacted bill, condo associations must now provide certain disclosures within 10 business days instead of the previous 30 business days. Additionally, associations can charge a maximum of $375 for producing documents, with an additional allowable charge of $100 for rush jobs that are done within 72 hours.

Maryland

The new Maryland state laws in 2023 include the following:

Mandatory Reserve Study

New legislation requires all homeowners associations, condominiums, and cooperatives to perform regular reserve studies for their common areas. Communities that have completed reserve studies on or after October 1, 2018, must update their studies within five (5) years from the date of completion. They must also update it every five (5) years thereafter.

In contrast, communities that have not completed reserve studies on or after October 1, 2018, have a deadline. They must have a reserve study performed by October 1, 2023. They must also have the study updated every five (5) years thereafter.

Missouri

The new Missouri state laws in 2023 include the following:

Solar Panels

Senate Bill 820 states that homeowners associations cannot ban the installation and use of solar panels. However, associations can still enact reasonable restrictions concerning the placement of these panels. Of course, this is provided the rules don’t negatively affect the use, function, cost, or efficiency of the panels or have the effect of preventing installation.

For Sale Signs

Homeowners associations can’t completely ban for-sale signs in their communities. However, they can enforce reasonable rules, such as the size, location, and duration of display of the signs.

Nevada

The new Nevada state laws in 2023 include the following:

Community Website; Online Dues Payments

According to new Nevada laws, HOAs with at least 150 units must now have a website or portal. They must also upload the association’s documents on the website or portal. These documents include but are not limited to the bylaws, CC&Rs, rules, and budgets.

Starting January 1, 2023, HOAs must also provide owners with the option to pay their dues online.

Pennsylvania

The new Pennsylvania state laws in 2023 include the following:

Electronic Voting

House Bill 1795 permits associations to hold virtual meetings and take electronic votes even if they don’t amend their bylaws. However, this is provided that their bylaws or declaration don’t expressly prohibit virtual meetings and electronic votes.

Associations that choose to take electronic votes, though, must confirm the unit owner’s identity. They must also ensure the accurate transmission of votes. The new law comes into effect in May 2023.

Electronic Notices

Owners can now request to receive notices using electronic methods such as email. However, the association’s bylaws should permit electronic communication.

Good Standing to Vote

The same bill requires that owners must be in good standing with the HOA to be able to cast their vote in an election.

Independent Reviewer for Votes in Large HOAs

HB 1795 mandates that election votes must be submitted to an independent reviewer if an association has at least 500 units. This reviewer may not be a unit owner, a unit owner’s immediate family member, or have financial interests shared with a unit owner, declarant, or HOA manager. The reviewer must also disclose the terms of their compensation (if they are receiving compensation). The bill also states that an electronic voting management system counts as an independent reviewer.

Associations with fewer than 500 units can also adopt an independent reviewer. However, they must approve the requirement with a 51% vote from the membership.

Pre-election Sessions

If there are more candidates running than there are open positions on the board, the bylaws must permit a pre-election session. During such a session, candidates can meet with owners and talk about their platforms.

Removing Board Members

The new HOA laws also clarify the process for removing board members. According to the amendment, to remove board members, it is required to have a two-thirds vote from those voting at a meeting where a quorum is present. Additionally, the bylaws must now contain a provision governing the removal of board members.

Amendments to the Bylaws

Amending the bylaws now requires the association to provide notice to owners 14 days prior to the meeting. Any amendments must secure a 51% vote to pass. When this bill comes into effect, developers may not lower the voting percentage requirement.

The Bottom Line

As you can see, there are several new HOA laws that associations must familiarize themselves with this 2023. Because it can be confusing, HOA boards should consider seeking help from a lawyer or association manager to better understand how these laws will affect their communities.

Start looking for an HOA management company or lawyer today using our comprehensive online directory!

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