HOUSE BILL 259
54th legislature - STATE OF NEW MEXICO - second session, 2020
Sheryl Williams Stapleton and Linda M. Trujillo and
Jim R. Trujillo and Daymon Ely
RELATING TO HOMEOWNER ASSOCIATIONS; PROHIBITING HOMEOWNER ASSOCIATIONS FROM FORECLOSING BASED ON ASSESSMENTS, FINES OR PENALTIES IMPOSED BY THE ASSOCIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 47-16-18 NMSA 1978 (being Laws 2019, Chapter 30, Section 10) is amended to read:
"47-16-18. ENFORCEMENT OF COVENANTS--DISPUTE RESOLUTION.--
A. Each association and each lot owner and the owner's tenants, guests and invitees shall comply with the Homeowners Association Act and the association's community documents.
B. Unless otherwise provided for in the community documents, the association may, after providing written notice and an opportunity to dispute an alleged violation other than failure to pay assessments:
(1) levy reasonable fines for violations of or failure to comply with any provision of the community documents; and
(2) suspend, for a reasonable period of time, the right of a lot owner or the lot owner's tenant, guest or invitee to use common areas and facilities of the association.
C. Prior to imposition of a fine or suspension, the board shall provide an opportunity to submit a written statement or for a hearing before the board or a committee appointed by the board by providing written notice to the person sought to be fined or suspended fourteen days prior to the hearing. Following the hearing or review of the written statement, if the board or committee, by a majority vote, does not approve a proposed fine or suspension, neither the fine nor the suspension may be imposed. Notice and a hearing are not required for violations that pose an imminent threat to public health or safety.
D. If a person against whom a violation has been alleged fails to request a hearing or submit a written statement as provided for in Subsection C of this section, the fine or suspension may be imposed, calculated from the date of violation.
E. A lot owner or the association may use a process other than litigation used to prevent or resolve disputes, including mediation, facilitation, regulatory negotiation, settlement conferences, binding and nonbinding arbitration, fact-finding, conciliation, early neutral evaluation and policy dialogues, for complaints between the lot owner and the association or if such services are required by the community documents.
F. Unless the accumulated assessments and dues exceed twenty-five thousand dollars ($25,000) at the time of filing, no association shall file, maintain or prosecute an action seeking to foreclose based on dues, assessments, fines or penalties imposed by the association. Nothing in this subsection precludes an association from seeking another remedy available at law."
SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2020.
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