HB-2442:
I noticed that you strongly support HB-2442 but it appears to me that the bill could handcuff HOA boards by tying annual increases to the CPI. Our insurance rates have gone from $38K in 2022 to almost $106K for 2025. My understanding is this bill would require a vote from all homeowners to approve an increase in excess of the CPI even though our CC&Rs allow for a 6% increase annually without a vote. Voting, at least in our HOA, isn’t free. It takes considerable time and money. Also, I may be reading it wrong, but it sounds like if the budget doesn’t pass, you have to revert to the previous year’s budget and make special assessments for things like insurance. Our homeowners absolutely hate special assessments and have made it clear that we should try to include everything in our budget.
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The bill has considerable detail. Nothing stops you from developing the budget that you believe is necessary to accomplish the duties of the board. The problem is that far too many board have not been frugal and responsible in development of their budgets. And have wasted association resources irresponsibility ll to the detriment of the homeowners. If you have extrodinary expenses, all ay board needs to do is defend the entire budget to the community.. people are not stupid and will listen to reason if communicated openly to the members. The ratification provision is as simple a process as possible. A simple majority of members voting on the issue without any quorum consideration. If you only get 10 people to. Vote and 6 people radify the budget it is radified no matter how large your community is.. I fully understand that no one likes assessment increases by insurance premiums are out of your control for the most part and people understand that. Make sure you have looked at other options for insurance and any options like increasing deductibles and how that impact your cost.. come to the meeting prepared to defend your positions and you will get the approval needed.
Boards have been free from any restrictions in the past and will naturally panic on actually having to defend their budgets to the homeowners., Remember it is the homeowners money that you are spending and they have a right to have a say in the process of budget development and assessment.
Dennis