HB 2556 Summary

• Requires homeowners' associations (HOAs) and planned communities to adopt a formal alternative dispute resolution (ADR) policy covering all disputes under community documents, including conciliation, mediation, or arbitration.

• Mandates that parties to a dispute, including the board, participate in good faith ADR and complete the required process before filing court actions or petitioning for administrative hearings under section 41-2198.01.

• Clarifies that attorney-client privilege protections for association records apply only to communications actually privileged by law and do not cover routine business matters of the association or board.

• Applies changes to both condominium associations (section 33-1242) and planned community associations (section 33-1803), with corresponding record disclosure amendments.

• Maintains existing notice and response procedures for property violation claims, with ADR requirement inserted before enforcement action or court proceedings can proceed.