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AB129

New Rules for Homeowners' Association Bidding

Last scannedAug 22, 2026, 1:27 AM

In one sentence

This law requires homeowners' associations to get at least three bids for projects costing a certain percentage of their annual budget, unless waiting would cause property damage or injury.

What it does

  • Requires associations in communities with fewer than 1,000 units to get at least three bids if a project costs 3% or more of the annual budget.
  • Requires associations in communities with 1,000 or more units to get at least three bids if a project costs 1% or more of the annual budget.
  • Allows an association to skip getting bids only if waiting would cause property damage or risk injury.
  • Mandates that all bids must be opened and read aloud during a meeting of the executive board.
  • Requires associations to give the contract to the bidder with the lowest price who meets the project requirements.

Who it affects

  • Homeowners' associations in common-interest communities
  • Executive boards of homeowners' associations

Limits and unknowns

  • The law does not define exactly what counts as an 'undue delay' that allows skipping bids.
  • The text provided does not state a specific date when these new rules will start taking effect.

Plain language

Terms to know

Common-interest community
A group of homes or units that share ownership of some areas and are managed by an association.
Association project
Work to fix, replace, restore, or maintain shared parts of the property, or hiring professional services like lawyers, engineers, or accountants for the group.

Official record

Sources

Source attached

Official summary

Revises provisions governing bidding procedures for a homeowners' association. (BDR 10-818)