House Bill 1312 Summary

• Establishes comprehensive statewide regulations for homeowners' associations including formation requirements, membership composition, board governance standards, and financial management procedures.

• Requires associations to be organized as nonprofits or LLCs with bylaws; mandates owner-elected board members (at least 25% when 25% of lots sold, 50% when 50% sold) and allows voidance of developer contracts entered before owner control with 90 days' notice.

• Authorizes associations to adopt budgets, impose assessments and fines, maintain common areas, and create liens on properties for unpaid assessments; requires annual budget disclosure to owners and board meetings open to owner observation with limited closed executive sessions.

• Prohibits discriminatory covenants based on race, color, creed, sex, national origin, disability status, families with children (except age-restricted communities), and service animals; allows board to unilaterally remove such provisions without owner vote.

• Requires reserve accounts and studies for major repairs/replacements, disclosure summaries for property purchasers, and establishes developer liability for misappropriation of association funds and failure to maintain common areas and drainage structures.