The implications of SB 86 are significant for state laws on property and community governance. By enshrining the requirement for homeowner elections into the Homeowner Association Act, the bill aims to reduce the potential for conflict between property developers and residents. This could lead to a more equitable governance model, empowering homeowners to make decisions about their living environment, which is particularly vital in rapidly developing areas. It addresses a growing concern about the influence of developers in communities long after the initial phase of housing sales is complete.
Summary
Senate Bill 86 addresses the governance structure of homeowner associations in New Mexico by mandating that a minimum of seventy-five percent of the board members must be elected by lot owners once seventy-five percent of the lots are no longer owned by the declarant. The bill seeks to enhance the democratic control of homeowners over their associations, ensuring that the interests of those who actually reside in the community take precedence over those of developers or outside declarants. This is particularly relevant in developments where a significant portion of the community has transitioned from declarant control to resident control.
Contention
The bill has seen some contention, particularly regarding its impact on master planned communities where different governance rules may apply. Critics may argue that such a mandate could hinder the administration of homeowner associations in situations where developers have planned long-term control strategies. Proponents, however, argue that it levels the playing field and prevents potential abuses of control that can occur if all board members are appointed by the declarants. This shift in governance is likely to stir debates about the balance of power and the degree of control that developers should retain in community developments.