SB 1149 – HOA condo/document fees – a step closer

SB 1149 (HOA; condo; document fees) moves one step closer to a resolution Last week negotiations continued in an effort to reach a consensus on Senator Andy Biggs’ bill SB 1149 (HOA; condo; document fees). As many will recall, the bill passed out of the Senate Government Reform committee with an amendment that would limit the fees that a condominium or planned community could charge for the preparation of required documents to ten cents per page, as well as prohibited a condominium or planned community from charging a fee for the use or placement of a for-sale sign. Though the committee amendment satisfied many legislators, it continued to raise concerns with a few members and faced continued opposition from the property management companies. With this in mind, a stakeholders meeting took place between Tom Farley (Arizona Association of REALTORS® CEO), Nicole LaSlavic (Arizona Association of REALTORS® Government Affairs Director), and individuals who represent the property management industry. At this meeting the property management individuals brought forth an amendment that met many of the concerns which AAR has continuously voiced as a problem. With only a few remaining concerns looming, AAR and the property management individuals were able to come to an agreement on consensus language late last Thursday afternoon that would address the remainder of our concerns. SB 1149 went to the Senate Committee of the Whole on Monday, where a floor amendment was adopted. The bill is scheduled for third read today where it will be voted on by the entire Senate body. The floor amendment made the following changes: Caps the amount that a property management company can charge as an aggregate of $400 (Important to note: this includes not only the document fees but other items such as ledger fees, HOA Transfer fee to the property management company and other tacked-on fees). Establishes that in the case of an initial or forced sale without notice, the property management company may charge a fee of no more than two hundred dollars for the transfer of the property. Stipulates that a property management company may charge a rush fee of no more than one hundred dollars if the services are required to be performed within 72 hours after the request for rush service. Permits a document update fee of no more than $50 if thirty days or more have passed since the date of the original disclosure documents. Prohibits an automatic increase to the cap of $400 by placing an anti-inflator clause which applies if the fee is less than $400 on January 1, 2010 that the fee may increase at a rate of no more than 20% annually based on the immediately preceding fiscal year’s amount. Allows the fee to be charged regardless of the statement or documents being produced in electronic or paper format. Forbids the fee to be collected before the close of escrow and stipulates that the homeowner can only be charged once for the transaction. Establishes a civil penalty up to $1200 if a property management company collects the fees prior to the close of escrow. Prohibits a condominium or planned community from charging a fee for the use or placement of a for-sale sign. Penalizes any association, declarant or property management company that acts in violation of statutes allowing the placement of for sale/rent signs by forfeiting and extinguishing their lien rights with that specific property for a period of six consecutive months. — NICOLE LASLAVIC, AAR GOVERNMENT AFFAIRS DIRECTOR

About these ads

2 thoughts on “SB 1149 – HOA condo/document fees – a step closer”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s