January 13, 2022 - Introduced by Senator Ballweg, cosponsored by
Representatives Brooks, Allen, Kuglitsch, Krug and Subeck. Referred to
Committee on Housing, Commerce and Trade.

SB865,1,4 1An Act to create 182.01 (7) and 710.18 of the statutes; relating to: regulating
2homeowners' associations and requiring the Department of Financial
3Institutions to create a filing system for notices filed by homeowners'
4associations.

This bill creates requirements for and restrictions on the authority of certain
homeowners' associations.

The bill applies to a homeowners' association only if all of the following apply:

1. The homeowners' association is an entity that is created to manage or
regulate, or to enforce covenants and restrictions for, real estate that includes at least
one residential lot (residential planned community).

2. The residential planned community is described in covenants and
restrictions that a) provide for such management, regulation, or enforcement by the
homeowners' association; and b) provide for restrictions on or requirements for
residential lots that run with the land, such as restrictions or requirements
regarding allowable structures; building setbacks; architectural standards; fence
restrictions; or the use, occupancy, appearance, or maintenance of property.

3. Substantially all of the members, stockholders, or other owners of the
homeowners' association are owners of residential lots that are part of the residential
planned community.

The bill specifies that the covenants and restrictions for a residential planned
community that has a homeowners' association must be recorded with the register
of deeds in every county in which the residential planned community is located. The
bill also provides that, if the homeowners' association for a residential planned
community maintains an Internet site on which information related to the
residential planned community is available to the public, the homeowners'
association must post the covenants and restrictions on that Internet site.

The bill requires a homeowners' association to give public notice of certain
information, including the name and contact information for an individual who is
authorized to provide information on behalf of the homeowners' association, by filing
with the Department of Financial Institutions a notice containing the information.
The bill requires each homeowners' association to annually file a renewal notice with
DFI and, if any information contained in a notice changes, to file an amended notice
with DFI within 30 days to update the information.

The bill requires DFI to establish and maintain a statewide searchable filing
system for these notices. DFI may establish a fee not exceeding $25 for filing a notice,
but the public must be allowed to search the system's database of filings without
charge. DFI must also prescribe a form for filing notices with DFI.

The bill provides that, if a homeowners' association fails to file a required
notice, the homeowners' association may not, during the period of noncompliance,
charge any late fees or other fines for unpaid assessments owed by residential lot
owners or charge any fees in connection with transfers of ownership of residential
lots.