New Mexico HOA Act

If you are wondering whether or not there is such a thing in New Mexico, there isn’t.  But Mimi Stewart, District 21 Representative for Bernalillo since 1995, is considering introducing this much debated bill in the 2013 legislative session.  The HOA Act passed in the New Mexico House in the 2011 session but failed to get approval in the Senate as a result of an 11th hour Republican filibuster that stopped the HOA Act and other Democratic initiatives.

Here are some of the important points covered by the 2011 proposed legislation:

  • Creates and establishes homeowner associations as nonprofit corporations.
  • Defines the quorum required for meetings of the association and board.
  • Limits the amount of time a declarant can exercise control over the board consistent with uniform laws on the subject.
  • Sets forth the Duty of Care owed by board members to parcel owners.
  • Requires all board meetings to be open to HOA members.
  • Establishes notice procedures for board and association meetings.
  • Provides for board member removal.
  • Provides for management company and contractor removal.
  • Allows for financial review or audit upon request by a majority of parcel owners.
  • Requires disclosure of all financial and other records to members.
  • Requires voting shares for all parcels to be set forth in the association’s governing documents.
  • Regulates proxy and absentee voting.
  • Limits when association and board meeting agendas can be amended.
  • Requires a neutral third party or group of volunteers to count the association members votes.
  • Allows alternative dispute resolution for disputes between members and their association.
  • Provides for an award of attorney fees and costs in any civil action between a member and the association.
  • Prohibits counties and municipalities from restricting use of water conservation measures.
  • Agreements to restrict the use of water conservation measures are void and unenforceable.
  • Requires real estate brokers or sellers to provide a disclosure statement or resale certificate to purchasers and dictates that the Real Estate Commission educate brokers of this requirement.
  • Compels all nonprofit corporations to file bylaws with the PRC.

If Ms. Stewart decides to introduce this bill in 2013, there might be some changes in order to obtain more support from the professional real estate community.

Here is a link to a draft of the legislation:  New Mexico HOA Act Draft

Tom Simon, CMCA, AMS, PCAM

2 comments to New Mexico HOA Act

  • Jeff Tidmore

    Tom, give me your thoughts when you have time on the proposed legislation. Interesting concept to say the least. Will be interesting to see if it gets to the floor for a vote. Looks like it puts realtors, property managers and assoations in a new and some what difficult position in some instances if members of a HOA has a dispute. Would like your thoughts. Jeff

  • Jeff, Thanks for the question. Communities that were formed under the New Mexico Condominium Act such as the one that you belong to, have lived by similar rules for many years. The HOA Act is meant to apply only to Homeowner Associations. Such organizations have not had much in the way of controls for owners who resell a unit. The developer must disclose certain things when they sell a home in an HOA but the buyer who resells is not under the same rules. I learned today that the HOA Act (SB-30) was approved by both houses of the NM Legislature and awaits the Governor’s signature. My view is that the Governor should sign the bill so that members of HOA’s can have some more protections. If signed we will be studying this new law carefully so that we can be ready to assist HOA’s in its implementation. I hope to interview the sponsor, Tim Keller, in a radio program that I’ll be hosing on March 31. Stay tuned for more details. –Tom Simon

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