HB1660
To Amend The Horizontal Property Act; To Regulate Property Owners Associations; And To Require An Audit For Certain Property Owners Associations.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1660 proposes amendments to the Horizontal Property Act to increase regulation and oversight of certain property owners associations (POAs) in Arkansas. It defines a 'property owners association' specifically as an incorporated nonprofit organization with at least 1,000 members where lot owners are automatically enrolled and subject to fees. The bill also defines 'services traditionally performed by a local government' to include road maintenance, sewer, trash, and water services. It mandates that financial records of these associations be available for examination by co-owners. Furthermore, it authorizes the Arkansas Legislative Audit to review POAs that provide these government-like services, provided that the Legislative Joint Auditing Committee approves such an audit. The bill does not restrict the existing investigative authority of the Legislative Auditor.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are the individual lot owners and members of large property owners associations (with 1,000 or more members) that provide essential services. These individuals benefit from increased financial transparency, guaranteed access to association financial records, and the potential for state-level oversight to ensure accountability in the management of funds and services like road maintenance and utilities.
Who Might Suffer?
The primary entities negatively impacted are the boards and administrative bodies of large property owners associations. These groups may face increased administrative burdens, costs associated with maintaining rigorous financial record-keeping, and the possibility of state-mandated audits by the Arkansas Legislative Audit, which could result in increased scrutiny of their operational and fiscal practices.
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