Committee approves substitute for property‑owners' bill of rights, including HOA registration and right‑to‑cure changes

The committee heard and approved a substitute to SB 406 (LC 492879S), a property‑owners' bill of rights intended to change how homeowners associations (HOAs) and condominium associations operate when collecting fees or enforcing declarations.

Chairman Leverett (presenter) said the substitute would require HOAs and similar associations to register with the Secretary of State if they want to continue collecting fees; it establishes a complaint process at that office and expands owners’ rights to obtain HOA records — specifically adding bank statements to required disclosures. Leverett described a now‑deleted paragraph that had previously allowed a stay of enforcement pending appeal and said that paragraph was removed in this substitute. He also noted a change reducing a right‑to‑cure period from 90 days to 60 days and the inclusion of language from a House bill allowing an 80 percent amendment threshold in certain older associations.

Committee members asked about specific foreclosure limits and whether the substitute preserved more protective language from prior drafts; the presenter acknowledged deletion of a paragraph that had been more protective and pointed to other provisions that limit amounts that trigger foreclosure. After discussion, the committee moved, seconded and approved the substitute by voice as recorded in the transcript.

The substitute was placed on the committee calendar for further floor consideration. The transcript does not record a roll‑call tally for the substitute approval; the committee recorded the motion, a second and that the substitute was approved.