HOA, condo, coop legislation updates (CO, HI, MD, SC Sept. 2018)

By Deborah Goonan, Independent American Communities

Colorado

HB18-1175

Colorado statute has required licensure for Community Association Managers since July 1, 2015. But that requirement was set to be repealed as of July 1, 2018.

This Legislative session, HB18-1175 was introduced to extend manager licensing for another 5 years, until 2023. The bill was considered in the House, where it was amended with new requirements for licensure qualifications, and also allows for an “apprentice” to a manager — a management or clerical assistant without authorization to handle association money — to work without a license.

The amended version of the bill passed in the House on March 23, 2018, with recorded votes of 38-24. On April 4, 2018, the Senate Committee on Finance voted to postpone consideration of the bill indefinitely.

Therefore, the licensure process for existing and new managers of association-governed communities enters its one-year Sunset period. Current requirements and laws will remain as is, until July 1, 2019.

Colorado Legislature may vote to extend licensure any time before June 30, 2019. If the current bill or any other proposal is not approved before the Sunset period ends, community association managers will no longer require a license as of July 1, 2019.

CAM Program Update

On April 10, 2018, the Senate Committee on Finance of the Colorado Legislature voted to postpone indefinitely HB18-1175 (the Bill Concerning the Continuation of the Community Association Manager Program under the Sunset law). The effect of this vote means that the legislature will not continue the Community Association Manager (CAM) Program and will allow it to sunset.

Q: What does it mean that the CAM program sunset?

A: The CAM program was set to be repealed on July 1, 2018, pursuant to C.R.S. 12-61-1014, unless extended by the legislature. Since this program was not extended by the legislature, it then goes through a “wind-up” procedure. This means that the program continues in existence until the date that is one (1) year after the specified repeal date (July 1, 2018) for the purpose of winding up affairs for the program. That ending date of the program will be July 1, 2019. On that date, the Division will then cease all activities with regard to the CAM program.

Read more: Colorado Department of Regulatory Agencies
https://www.colorado.gov/pacific/dora/cam-program-update

Read HB18-1175
Sunset Community Association Managers

 

Hawaii beach hillside
Photo by Channey on Unsplash

Hawaii County (local ordinance)

Bill 108 is Hawaii County’s effort at restricting non-hosted short-term rentals in residential and agricultural zones.

The bill’s goals, according to its supporters, are to preserve affordable rental housing in residential neighborhoods, and to limit transient uses to commercial and resort zones.

However, some owners of units in condominium hotels (also known as condotels) are concerned that their property rights are at risk, because their properties happen to be located in designated residential zones.

The County is attempting to reassure condotel unit owners that they will be able to apply for a nonconforming use certificate in order to continue renting their units to vacationers in the future.

The matter continues to play out in public hearings. The County is considering changes to zoning in the future, to address inconsistencies involving condo units that have operated as vacation destinations for decades.

Hosted short-term rentals, such as Bed and Breakfast establishments, are not affected by Bill 108.

Condos and hotels caught up in proposed vacation rental rules

By Nancy Cook Lauer West Hawaii Today ncook-lauer@westhawaiitoday.com | Sunday, September 16, 2018, 12:05 a.m.

HILO — Some longtime vacation rental condos, by a quirk of zoning, are being swept up into a vacation rental bill while those just across Alii Drive are not, an issue that has a crowd ready to speak out at the Leeward Planning Commission meeting.


Kona Isle, Kona Pacific, Kona by the Sea, Kona Mansions, Kona Westwind and Kona Eastwind are among condo hotels affected by changes to short-term rentals envisioned in Bill 108. That’s because they’re in a residential multifamily zone that’s just shy of the General Plan resort code, while short-term rentals will be allowed only in resort-hotel or commercial zones.

Read more:

http://www.westhawaiitoday.com/2018/09/16/hawaii-news/condos-and-hotels-caught-up-in-proposed-vacation-rental-rules/

Read a good summary of Bill 108 in this LUVA Real Estate article.

 

Swimming-pool-feet-in-water
(Pixabay.com free image)

Maryland

HB 575, recently signed by the Governor, is enabling legislation applicable to condominium associations in the state. The law now allows for the possibility that a condo association can suspend the use of parking space(s) or recreational facilities (such as a community pool or club house), when the owner is at least 60 days past due on assessment payments.

In order for a condo association to withhold access to parking or amenities, its Declaration of Condominium documents must officially grant the association this authority. Therefore, if such a provision does not currently exist in the governing documents, the association must first officially amend their documents to include this power.

Under Maryland law, most amendments to condominium association documents require the affirmative vote of at least 80% of total voting interests. However, HB 575 allows the association to pass an amendment under these specific circumstances with approval from only 60% of total voting interests. A repeal of such provision also requires at least 60% of voting interests.

The law specifies that, before rights to use parking spaces or recreational amenities is suspended, the association must provide advance notice to a condo owner, allowing 10 days to make the assessment account current, or to request a hearing to dispute the claim of 60+ day delinquency.

Governor Approves Bill To Permit Suspension of Use of Facilities By Condo Owner Who Is Delinquent In Paying Assessments

By Baker Donelson

Governor Larry Hogan has signed into law House Bill 575, which permits a condominium declaration to provide for the suspension of the use of parking or recreational facility common elements by a unit owner who is more that sixty (60) days in arrears in the payment of assessments. The new law, which takes effect on October 1, 2018, will add new Section 11-103(d) to the Maryland Condominium Act, requiring that, prior to any suspension of privileges, the council of unit owners must first send a demand letter giving the unit owner ten (10) days in which to pay the arrearage, or request a hearing to contest the suspension. If a hearing is requested, the council must provide notice and hold the hearing before a suspension of privileges may be implemented. The new law further provides that a condominium declaration may be amended to add or repeal such a provision for suspension of privileges by the affirmative vote of sixty percent (60%) of the unit owners. House Bill 575 was passed unanimously by both the House of Delegates and State Senate.

Source:
https://www.jdsupra.com/legalnews/governor-approves-bill-to-permit-98890/

Read HB 575, Chapter 435

 

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(Unsplash.com free image)

South Carolina

H.3886, the Homeowners Association Act, is now the law in SC. It provides certain disclosure requirements to unit owners of properties in planned communities and condominiums — except for communities incorporated under the South Carolina Nonprofit Corporation Act —  as follows:

        • The association must provide official written notice of new rules and regulations, and must record them in their respective counties
        • The association must provide 48-hour notice of its intention to vote on an increase to the annual budget, which would result in an increase in assessments
        • The association must provide its members access to official records of the association

       

A home seller must now disclose the existence of a homeowners association, along with other details about the property, as provided on an official SC real estate disclosure form.

The Act also creates the authority for the Department of Consumer Affairs (DCA) to accept and record complaints received by homeowners or complaints or homeowners’ associations. Those complaints will be recorded in a public, searchable database. The DCA will submit an annual report to the Governor and the General Assembly.

However, other than recording complaints, and informing the other party of those complaints, the DCA will take no further action to investigate, arbitrate, regulate, or enforce the Act.

(E) Under the provisions of this article, the department is prohibited from:

(1) promulgating regulations or issuing guidelines concerning homeowners association administration, governance, or governing documents; or

(2) serving as an arbiter in disputes between the homeowner and homeowners association.”

According to local media reports, the Homeowners Association Act was supported by South Carolina Realtors.

South Carolina passes HOA reform law

by Nicholas Papantonis. Thursday, August 30th 2018

Columbia, S.C. (WPDE) — Home owners associations in South Carolina are now under more scrutiny.

Gov. Henry McMaster signed an HOA reform bill Wednesday, ending a three-year process for the bill’s supporters.

According to Rep. Heather Ammons Crawford (R-Horry County), the law requires HOAs to record their governing documents with the Clerk of Court, notify potential property buyers if the property is subject to a HOA, and notify homeowners if the HOA’s budget will increase at least 48 hours in advance.

In addition, the law gives HOA’s power to resolve some financial disputes between the organization and homeowners, instead of having to go through attorneys.

Finally, the law requires the Department of Consumer Affairs to collect data about any complaints received regarding HOA’s.

Read more:
https://wpde.com/news/local/south-carolina-passes-hoa-reform-law

Read S. 104, SC Homeowners Association Act
See full text here.

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