Bill Description: House Bill 361 would clarify the process by which the responsibilities of a homeowner's association get turned over to the property owners.
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Does it violate the spirit or the letter of either the United States Constitution or the Idaho Constitution? Examples include restrictions on speech, public assembly, the press, privacy, private property, or firearms. Conversely, does it restore or uphold the protections guaranteed in the US Constitution or the Idaho Constitution?
While homeowners associations (HOAs) operate as private organizations in some regards, membership is typically compulsory. HOAs enjoy a variety of legal privileges that allow them to use government resources to impose their will on the property owners within their boundaries. Clear legal limits are necessary to prevent HOAs from violating individuals’ property rights.
House Bill 361 would amend sections 55-3203 and 55-3205, Idaho Code, to add definitions, correct terminology, and clarify that HOAs are "subject to the records and reports requirements of the Idaho nonprofit corporation act under part 11, chapter 30, title 30, Idaho Code."
The bill would also create sections 55-3204A and 55-3204B, Idaho Code, to clarify the process by which a new homeowners association transitions to management by the property owners within its boundaries.
For HOAs formed after July 1, 2025, a "declarant" (the individual or entity filing a declaration in association with a residential subdivision) would initially be allowed to "appoint and remove board members and officers of the homeowner's association." Once 75% of the lots "are conveyed to owners other than the declarant or a builder in the business of constructing homes that purchased the lots from the declarant for the purpose of selling completed homes built on the lots, at least one-third (1/3) of the positions on the homeowner's association board shall be offered for members elected by owners other than the declarant."
Once 95% of "a development is built and occupied, the declarant shall begin the process of turning over full control of the homeowner's association to the owners and shall complete the process within twelve (12) months of such date."
The bill would also clarify that only one owner per lot may "serve concurrently on the board of a homeowner's association" and "a person may not serve on the board of a homeowner's association if the person is a member of the same household in the same primary residence as another board member of the homeowner's association."
Taken together, the provisions of this bill should help prevent new HOAs from avoiding transitioning to management by the property owners within its boundaries.
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