SB 1238 - Homeowners' Associations Summary

• Prohibits associations from hiring attorneys who represent the association's management company and requires associations to maintain bids for materials, equipment, or services as official records.

• Grants renters the right to inspect and copy association bylaws and rules; requires associations with 150+ parcels to post specified documents on a website by July 1, 2019.

• Prohibits associations and their officers, directors, employees, and agents from using debit cards issued in or billed to the association; unauthorized use may be prosecuted as credit card fraud.

• Establishes board member term limits of no more than four consecutive 2-year terms or eight consecutive 1-year terms unless approved by two-thirds of voting interests or insufficient eligible candidates exist.

• Creates conflict of interest requirements for directors and officers, prohibits certain parties from purchasing foreclosed parcels, restricts associations from contracting with service providers owned or operated by board members or their relatives, and establishes criminal penalties for kickbacks.