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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
963
BY
WAYS
AND
MEANS
COMMITTEE
AN
ACT
1
RELATING
TO
HOMEOWNER'S
ASSOCIATIONS;
AMENDING
SECTION
55
-
3204,
IDAHO
CODE,
2
TO
REVISE
PROVISIONS
REGARDING
THE
ADMINISTRATION
OF
AN
INCORPORATED
OR
3
UNINCORPORATED
HOMEOWNER'S
ASSOCIATION;
AMENDING
CHAPTER
32,
TITLE
55,
4
IDAHO
CODE,
BY
THE
ADDITION
OF
A
NEW
SECTION
55
-
3204C,
IDAHO
CODE,
TO
5
ESTABLISH
PROVISIONS
REGARDING
AUTOMATIC
CONVERSION
OF
HOMEOWNER'S
AS
-
6
SOCIATIONS
TO
JOINT
OWNERSHIP
ASSOCIATIONS;
AMENDING
CHAPTER
32,
TITLE
7
55,
IDAHO
CODE,
BY
THE
ADDITION
OF
A
NEW
SECTION
55
-
3214,
IDAHO
CODE,
8
TO
PROVIDE
FOR
JOINT
OWNERSHIP
ASSOCIATIONS;
AND
PROVIDING
AN
EFFECTIVE
9
DATE.
10
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
1
1
SECTION
1.
That
Section
55
-
3204,
Idaho
Code,
be,
and
the
same
is
hereby
12
amended
to
read
as
follows:
13
55
-
3204.
ADMINISTRATION
OF
AN
INCORPORATED
OR
UNINCORPORATED
HOME
-
14
OWNER'S
ASSOCIATION.
(1)
Board
meetings
must
be
open
to
the
members
of
the
15
homeowner's
association
and
any
representative
or
agent
designated
in
a
16
signed
writing
by
a
member
to
represent
the
member.
17
(2)
An
executive
session
at
which
members
of
the
homeowner's
associa
-
18
tion
are
excluded
may
be
held
upon
a
majority
vote
of
the
board
for
the
fol
-
19
lowing
purposes:
20
(a)
To
consider
matters
of
personnel,
hiring,
bid
review,
or
contract
21
negotiation;
22
(b)
To
consider
records
that
are
not
subject
to
disclosure
under
part
23
11,
chapter
30,
title
30,
Idaho
Code;
24
(c)
To
consult
with
an
attorney
for
the
purpose
of
obtaining
legal
ad
-
25
vice.
The
mere
presence
of
legal
counsel
at
a
board
meeting
shall
not
26
justify
entering
into
executive
session;
27
(d)
To
discuss
ongoing
or
potential
litigation,
mediation,
arbitra
-
28
tion,
or
administrative
proceedings;
or
29
(e)
To
discuss
sensitive
matters
related
to
an
individual
member's
30
property
or
assessments,
such
as
violations
or
delinquent
assessments.
31
(3)
All
homeowner's
associations,
whether
incorporated
or
unincorpo
-
32
rated,
shall:
33
(a)
Hold
a
meeting
of
the
membership
each
calendar
year.
Such
meeting
34
may
be
conducted
in
person
or,
with
the
approval
of
a
simple
majority
of
35
the
members,
through
an
electronic
or
hybrid
meeting
model;
36
(b)
Be
governed
by
the
provisions
of
sections
30
-
30
-
501
and
30
-
30
-
505,
37
Idaho
Code,
as
those
provisions
relate
to
notice
of
meetings
of
the
38
homeowner's
association.
The
board
may
adopt
a
process
for
members
to
39
choose
to
receive
notice
of
any
meeting
of
the
homeowner's
association
40
by
electronic
means
rather
than
by
mail.
All
dates
and
information
of
41
the
notice
must
remain
the
same
as
a
mail
notice;
42
2
(c)
Take
minutes
from
all
meetings
of
the
homeowner's
association,
in
-
1
cluding
membership
meetings
and
board
meetings,
and
preserve
such
min
-
2
utes
for
a
minimum
of
ten
(10)
years;
and
3
(d)
Determine
and
establish
the
amount
of
assessments
in
accordance
4
with
the
governing
documents
or,
in
the
event
the
governing
documents
5
do
not
include
such
language,
with
the
approval
of
a
majority
of
the
6
members
of
the
homeowner's
association.
7
(4)
At
a
meeting
of
the
membership,
to
constitute
a
quorum
on
a
matter,
8
ten
percent
(10%)
of
the
votes
entitled
to
be
cast
on
the
matter
shall
be
rep
-
9
resented
in
person,
by
proxy,
by
mailed
written
ballot,
by
absentee
ballot,
10
or
by
means
of
remote
communication
to
the
extent
authorized
by
the
board
of
1
1
directors.
12
(4)
(5)
At
an
annual
meeting
of
the
homeowner's
association,
board
mem
-
13
bers
shall
declare
any
conflict
of
interest
or
familial
relationship
that
14
exists
with
respect
to
such
board
member
and
any
person
or
entity
who
has
pre
-
15
viously
entered
into
or
seeks
to
enter
into
a
service
contract
with
the
home
-
16
owner's
association.
17
(5)
(6)
A
board
of
a
homeowner's
association
may
not
use
its
power
to
18
adopt
rules
governing
the
common
property
to
expand
the
provisions
of
the
re
-
19
strictive
covenants
as
they
relate
to
a
member's
property.
20
(6)
(7)
All
homeowner's
associations,
whether
incorporated
or
unincor
-
21
porated,
shall
be
governed
by
sections
30
-
30
-
502
and
30
-
30
-
608,
Idaho
Code,
22
as
those
sections
relate
to
the
removal
of
a
board
member
and
the
process
of
23
calling
a
special
meeting
for
such
removal.
24
(7)
(8)
Unincorporated
homeowner's
associations
shall
be
governed
by
25
bylaws
that
provide
for
at
least
the
following:
26
(a)
A
requirement
that
the
homeowner's
association
holds
at
least
one
27
(1)
meeting
each
calendar
year;
28
(b)
A
requirement
that
notice
of
any
meeting
of
the
homeowner's
associ
-
29
ation
be
published
and
distributed
to
all
members
of
the
homeowner's
as
-
30
sociation;
31
(c)
A
requirement
that
the
minutes
of
all
homeowner's
association
meet
-
32
ings
be
taken
and
preserved;
33
(d)
A
method
of
adopting
and
amending
fees;
and
34
(e)
A
provision
that
no
fees
or
assessments
of
the
homeowner's
asso
-
35
ciation
may
be
increased
unless
a
majority
of
all
members
of
the
home
-
36
owner's
association
vote
in
favor
of
the
increase.
37
(8)
(9)
If
a
homeowner's
association
violates
any
of
the
provisions
of
38
this
chapter
and
a
member
prevails
in
a
legal
action
to
protect
his
rights,
39
the
member
shall
be
entitled
to
an
award
of
reasonable
attorney's
fees.
40
SECTION
2.
That
Chapter
32,
Title
55,
Idaho
Code,
be,
and
the
same
is
41
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
42
ignated
as
Section
55
-
3204C,
Idaho
Code,
and
to
read
as
follows:
43
55
-
3204C.
JOINT
OWNERSHIP
ASSOCIATIONS
-
-
CONVERSION.
(1)
Any
home
-
44
owner's
association
that
has
been
in
existence
for
ten
(10)
years
or
more,
45
pursuant
to
the
date
of
the
filing
of
articles
of
incorporation
or
the
date
of
46
establishing
bylaws
for
unincorporated
homeowner's
associations,
as
of
Jan
-
47
uary
1,
2027,
shall
automatically
convert
to
a
joint
ownership
association
48
(JOA),
as
provided
in
section
55
-
3214,
Idaho
Code,
on
January
1,
2030,
unless
49
3
its
members
vote
against
such
conversion
pursuant
to
the
provisions
of
this
1
section.
Any
homeowner's
association
that
has
been
in
existence
for
less
2
than
ten
(10)
years
as
of
January
1,
2027,
or
that
is
created
after
January
1,
3
2027,
shall
automatically
convert
to
a
JOA
after
ten
(10)
years
from
the
date
4
of
the
filing
of
articles
of
incorporation
or
the
date
of
establishing
bylaws
5
for
unincorporated
homeowner's
associations
unless
its
members
vote
against
6
such
conversion
pursuant
to
the
provisions
of
this
section.
7
(2)
A
homeowner's
association
shall
hold
a
meeting
of
its
membership
8
before
the
automatic
conversion
dates
provided
for
in
subsection
(1)
of
this
9
section
to
provide
an
opportunity
for
its
members
to
vote
against
the
auto
-
10
matic
conversion
of
the
homeowner's
association
to
a
JOA.
A
homeowner's
as
-
1
1
sociation
shall
give
notice
to
its
members
of
the
proposed
meeting
in
accor
-
12
dance
with
the
provisions
of
section
30
-
30
-
505,
Idaho
Code.
The
notice
shall
13
state
that
the
purpose,
or
one
(1)
of
the
purposes,
of
the
meeting
is
to
con
-
14
sider
the
automatic
conversion
of
the
homeowner's
association
to
a
JOA
and
15
shall
contain
or
be
accompanied
by
a
copy
or
summary
of
a
plan
of
conversion,
16
including
a
summary
of
the
proposed
JOA
governing
documents
and
the
impacts
17
of
conversion.
The
plan
of
conversion
shall
provide
for
the
transfer
of
as
-
18
sets
and
liabilities
from
the
homeowner's
association
to
the
JOA,
including
19
transfer
of
title
to
all
common
property
and
transfer
of
all
financial
as
-
20
sets
to
the
JOA.
No
automatic
conversion
of
a
homeowner's
association
to
a
21
JOA
shall
occur
if
a
quorum
is
present
and
a
majority
of
the
votes
represented
22
and
voting
vote
against
such
conversion.
23
(3)
If
a
majority
of
the
members
of
a
homeowner's
association
do
not
24
vote
against
the
automatic
conversion
of
the
homeowner's
association
to
a
25
JOA,
the
homeowner's
association
shall
convert
to
a
JOA.
Such
vote
shall
con
-
26
stitute
authorization
to
amend
or
terminate
existing
governing
documents,
27
to
establish
a
JOA
by
filing
articles
of
incorporation
or
by
establishing
28
bylaws
for
unincorporated
JOAs,
and
to
transfer
common
property
and
assets
29
to
the
JOA.
Upon
incorporation
or
establishment
of
bylaws
for
unincorporated
30
JOAs,
all
covenants,
conditions,
and
restrictions
granting
the
association
31
authority
to
regulate
anything
other
than
preserving,
maintaining,
repair
-
32
ing,
and
managing
common
property
shall
be
terminated.
All
terms
necessary
33
to
preserving
common
easements,
maintenance
obligations,
or
other
related
34
items
shall
remain
in
effect
unless
expressly
amended.
All
common
property,
35
including
common
areas,
limited
common
areas,
other
property
or
improve
-
36
ments
owned
or
maintained
by
a
homeowner's
association,
or
property
owned
in
37
common
by
the
members
of
a
homeowner's
association
shall
remain
dedicated
to
38
the
common
use
of
the
members
of
the
JOA.
39
(4)
If
a
majority
of
the
members
of
a
homeowner's
association
vote
40
against
the
automatic
conversion
of
the
homeowner's
association
to
a
JOA,
41
the
homeowner's
association
shall
continue
under
the
same
terms.
Home
-
42
owner's
associations
shall
automatically
convert
to
JOAs
ten
(10)
years
43
after
the
date
of
the
first
successful
vote
against
automatic
conversion.
44
Automatic
conversion
shall
occur
every
ten
(10)
years
thereafter
while
a
45
homeowner's
association
is
in
existence
unless
and
until
the
members
fail
to
46
vote
against
such
conversion
and
the
homeowner's
association
is
automati
-
47
cally
converted
as
provided
in
this
section.
48
4
SECTION
3.
That
Chapter
32,
Title
55,
Idaho
Code,
be,
and
the
same
is
1
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
2
ignated
as
Section
55
-
3214,
Idaho
Code,
and
to
read
as
follows:
3
55
-
3214.
JOINT
OWNERSHIP
ASSOCIATIONS
-
-
CREATION.
(1)
A
joint
owner
-
4
ship
association
may
be
created
as
provided
in
this
section
in
lieu
of
a
home
-
5
owner's
association.
For
purposes
of
this
section,
a
"joint
ownership
asso
-
6
ciation"
or
"JOA"
means
any
incorporated
or
unincorporated
residential
as
-
7
sociation
in
which
membership
is
based
on
owning
or
possessing
an
interest
in
8
real
property
and
that
has
ownership
of
common
property
with
the
authority
to
9
preserve,
maintain,
repair,
and
manage
such
property.
Common
property
means
10
any
property
owned
by
the
JOA
that
is
available
to
all
members
of
the
commu
-
1
1
nity,
including
but
not
limited
to
private
roads,
parks,
open
spaces,
recre
-
12
ational
facilities,
and
water
rights.
13
(2)
A
JOA
shall
have
the
authority
to:
14
(a)
Levy
assessments
against
lots
for
the
actual
and
reasonable
costs
15
incurred
in
the
maintenance
and
management
of
common
property;
16
(b)
Obtain
insurance
for
common
property;
and
17
(c)
Enter
into
contracts
necessary
for
the
maintenance
and
management
18
of
common
property.
19
(3)
A
JOA
shall
not
have
the
authority
to
adopt
or
enforce
any
rules
reg
-
20
ulating
conduct
that
is
not
directly
related
to
common
property.
A
JOA
shall
21
not
have
the
authority
to
regulate
aesthetic
standards,
land
use
restric
-
22
tions
beyond
those
imposed
by
law,
or
private
covenants
unrelated
to
common
23
property.
24
SECTION
4.
This
act
shall
be
in
full
force
and
effect
on
and
after
Jan
-
25
uary
1,
2027.
26