With HOA collection bill dead, language revived in another bill

By David McGrath Schwartz

Monday, June 6, 2011 | 2:38 p.m.

A portion of a homeowner association bill languishing in committee got reborn in a bit of last-minute legislative maneuvering.

Senate Bill 174, which would cap fees for delinquent homeowner association dues at $3,300 per house, was virtually dead in the Senate Finance Committee.

But homeowner management company lobbyists took a related bill, Senate Bill 402, and added a portion of that language in a “conference committee,” a process typically used to clarify minor differences in bill language between the Assembly and Senate.

Now, the full Senate and Assembly have only to adopt a conference report on the bill, which usually happens in a voice vote, before going to the governor.

The language was not available immediately, said Garrett Gordon, a lobbyist for Lewis and Roca, a lobbying firm. He said homeowner-friendly provisions were being added.

But sources said it would still put the cap at $3,300 and make collection fees a “superpriority” — a legal dispute right now between investors and collection companies.

The proposal has been controversial all session, with investors and some consumer protection groups arguing the caps were too high.

Rutt Premsrirut, an investor and real estate broker fighting the legislation, said “the bill lacks transparency.” He called it a “backroom deal” brokered by powerful lobbyists.