This bill aims to amend existing laws regarding homeowner's associations in Idaho, reflecting the state's rapid population growth and the corresponding increase in residential developments. Key provisions include the introduction of new definitions for terms such as "declarant" and "declaration," as well as the establishment of a period of declarant control for homeowner's associations formed after July 1, 2025. During this control period, the declarant can appoint and remove board members, but must transition control to the homeowners once a significant portion of the lots are sold. Additionally, the bill outlines restrictions on board membership and proxy voting, ensuring that only one owner per lot can serve on the board concurrently and limiting the number of proxies one individual can hold.

The bill also revises the requirements for financial disclosures and fee transparency within homeowner's associations. It mandates that associations provide members with timely statements of their assessment accounts and prohibits charging fees for these statements. Furthermore, it stipulates that transfer fees can only be charged if explicitly stated in the governing documents and cannot benefit third parties. The bill emphasizes the importance of financial accountability and transparency, requiring associations to disclose fees annually and provide updated financial disclosures within specified timeframes. An emergency clause is included, making the act effective on July 1, 2025.

Statutes affected:
Bill Text: 55-3203, 55-3205