LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7683 NOTE PREPARED: Jan 10, 2025
BILL NUMBER: HB 1401 BILL AMENDED:
SUBJECT: Homeowners Association Governance.
FIRST AUTHOR: Rep. Olthoff BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: No Fiscal Impact
DEDICATED
FEDERAL
Summary of Legislation: This bill amends as follows the statute governing homeowners associations:
(1) It provides that for each meeting of the homeowners association (HOA) board, the board must provide
at least four days advance written notice of the meeting to members of the HOA and requires the notice must
include:
(A) a meeting agenda; and
(B) in the case of the notice for annual meeting, a statement of the right of HOA members
to demand a special meeting of the members, including a statement of the statutorily
required number of members needed to demand a special meeting.
(2) It provides that a member of a homeowners association (HOA) is considered to be in attendance at a
meeting of the HOA if the member attends by remote or virtual means in accordance with the procedures for
remote meetings set forth in the statute governing nonprofit corporations.
(3) It provides that an HOA's governing documents may not require the attendance of more than 25% of the
members at a meeting to constitute a quorum.
(4) It authorizes an HOA to assess a fine for a member's violation of a covenant if the HOA first:
(A) adopts a schedule of fines for specified violations; and
(B) in the case of a violation by a member, provides to the member a notice setting forth the
violation, the amount of the fine, and the date on which the fine will be assessed.
(5) It amends provisions governing the resolution of disputes between HOAs and members to specify that
if a claimant under those provisions is an HOA and the claim involves a member's violation of the covenants
of the HOA, the board may:
(A) assess a fine under the bill's provisions authorizing the assessment of fines or enforce a fine
previously assessed under that authority; and
(B) seek to recover from the other party any court costs or attorney's fees incurred in connection with
the claim.
Effective Date: July 1, 2025.
Explanation of State Expenditures:
HB 1401 1 Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected:
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
HB 1401 2