Montana 2025 Regular Session

Montana House Bill HB232

Introduced
1/16/25  
Refer
1/17/25  

Caption

Require homeowners' associations to distribute annual budget and financial reports

Impact

The bill introduces specific regulations governing how HOAs can increase fees, dues, or other charges, stipulating that such increases can only happen once a year and must not exceed 15% or a predetermined dollar amount. Additionally, any fee increase would require majority approval from property owners in writing. This represents a significant shift in the financial operations of HOAs, as it restricts their ability to unilaterally raise fees without direct consent from the community, thereby enhancing homeowner protections and input over financial matters.

Summary

House Bill 232 aims to enhance transparency and accountability within homeowners' associations (HOAs) by mandating that they produce and distribute annual budget and financial reports to their members. This includes requirements for operating budgets that estimate revenue and expenses, as well as a financial report detailing the fiscal year’s outcomes. By ensuring that all property owners in an HOA receive this information, the bill seeks to foster trust and informed decision-making among members regarding their management fees and community finances.

Sentiment

The sentiment around HB 232 appears to be mixed. Proponents, including various homeowner advocacy groups, argue that the bill addresses common concerns related to HOA mismanagement and financial opacity. They believe it empowers homeowners by providing them with more control and awareness of how funds are utilized within their communities. However, there may be opposition from some HOA boards and property management companies who feel that the restrictions imposed by this legislation could hinder their operational flexibility, arguing it places unnecessary bureaucratic hurdles in their management practices.

Contention

A notable point of contention is the balance of power and authority between homeowners and their associations. Supporters of the bill emphasize the need for greater homeowner autonomy and the ethical obligation of HOAs to maintain transparency. Conversely, critics voice concerns about the administrative burden this bill may place on associations, fearing it could lead to inefficiencies in fee approvals and management. The debate centers around whether enhanced regulation strengthens homeowner rights or complicates the governance of community associations.

Companion Bills

No companion bills found.

Previously Filed As

MT HB262

Revise local government financial reporting and audit requirements

MT HB683

Revise laws relating to homeowners' associations

MT HB650

Require agency reporting on financial assistance to tribes

MT HB797

Require agency reporting on financial assistance to tribes

MT SB479

Generally revise homeowner association laws

MT HB816

Revise distribution of surplus revenue

MT HB357

Revise homeowners' association restrictions

MT SB15

Provide for all ages homeowner and renter tax credit

MT SB27

Revise MEDIA Act reporting requirements

MT HB463

Establish reporting requirement for food procurement

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