The bill mandates that board members exercise fiduciary duties and specifically prohibits them from forgiving fees or assessments for themselves or their peers, ensuring a level of impartiality in governance. It introduces stringent measures for handling associations' financial management, requiring that every board member undergo a background check for fidelity bonding and liability coverage as part of the financial safeguarding measures. Moreover, it stipulates that all delinquencies regarding dues and assessments be communicated monthly to the membership, fostering transparency and accountability within the community.
Summary
House Bill 4841, introduced by Rep. Daniel Didech, aims to amend the Common Interest Community Association Act. The bill seeks to enhance the governance of associations that collect annual dues of $100,000 or more. It delineates specific eligibility criteria for individuals seeking to run for or serve on the board of such associations, particularly emphasizing financial responsibility. If, within the previous 36 months, a person has been delinquent in payment for over three months or has issued multiple insufficient funds checks, they will be prohibited from serving on the board. This creates a new standard for board member accountability while reinforcing the financial stability of these associations.
Contention
Through its provisions, the bill could potentially spark debate regarding the balance of authority between community members and their boards. Proponents argue that such regulations are essential for maintaining integrity within community governance, particularly in larger associations where financial mismanagement can significantly impact the community. However, critics may raise concerns about excessive regulation and the potential for disenfranchisement of qualified candidates who may have faced temporary financial setbacks, thus limiting representation. Therefore, while aiming to protect the interests of community members, it raises fundamental questions about access and fairness in the election of community association leaders.
Permits a member or members of a limited-liability company to avoid dissolution by buying the membership interest owned by the other member or members seeking dissolution.
Housing cooperatives; organization and operation provided for seniors, low and moderate income people, and limited equity cooperatives and leasing cooperatives for designated members.