Bill to let homeowner groups file liens draws intense scrutiny

BOISE – Legislation that gives homeowners associations the authority to file liens against defaulted properties initially passed the Idaho House on Monday – but some lawmakers changed their minds forcing a second vote on the bill today.

House Bill 137 was initially approved 38-31, but only after some lawmakers tried to convince the majority that the legislation could unfairly subject some homeowners to heavy-handed restrictions and unfair payments.

The bill is sponsored by Rep. Mark Snodgrass, a Meridian Republican, and Rep. Wendy Jaquet, the Democratic floor leader from Ketchum.

The bipartisan legislation would have allowed homeowners associations to file liens against the land and structures within the boundaries of an association if a member did not pay his dues or special assessments – similar to the way condominium associations conduct business.

A homeowners association is usually formed by developers who build and market subdivisions. They are particularly prevalent in high-growth areas, such as Meridian and central Idaho’s vacation havens.

Typically, homeowners associations collect annual dues from all the property owners in the subdivision to pay for ordinary expenses, such as lawn maintenance, swimming pool expenses or common irrigation lines. They may also, with a majority vote of their members, make special assessments for one-time repairs or improvements.

Depending on the subdivision, the dues can be as low as a few hundred dollars a year or as high as the subdivision allows.

Homeowners who buy property in subdivisions are told about such dues by their real estate broker or their closing agent, or both. That makes the restrictions voluntary, Snodgrass told the House.

“If you don’t want to live in a subdivision, you don’t have to buy there,” Snodgrass said.

But Rep. Ann Rydalch, R-Idaho Falls, opposed the bill, saying the bill’s language about what property may be attached is too vague.

She said a reference to “other real property subject to the rules of the homeowner’s association for the purpose of enforcement” could be construed to mean any property.

“I think this is very loose,” Rydalch said.

Rep. Pete Nielsen, R-Mountain Home, also questioned whether the bill might apply to the owner of existing property, if his neighbors decide to form an association.

The legislation is scheduled at the top of today’s House calendar.