New Mexico 2020 Regular Session Status: Passed House

HB 259 — HOMEOWNER ASSOCIATION FORECLOSURES

Last action — action postponed indefinitely

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2020 Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

94 added · 32 removed

Plain-language change summary

The latest version of Bill HB 259 introduces a new provision that defines certain practices by homeowner associations as unfair or deceptive, specifically addressing abusive behaviors. This means the bill now sets specific standards for homeowner associations, making them accountable under the Unfair Practices Act, which could help protect property owners from unfair treatment. Additionally, earlier proposals to prohibit associations from foreclosing based on unpaid assessments or fines have been removed, indicating a shift in focus towards regulating practices rather than outright bans on foreclosure actions. This change matters because it balances the interests of homeowner associations with the rights of homeowners, promoting fairness while still allowing associations to enforce their rules.

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HOUSE BILL 259 54 TH LEGISLATURE- STATE OF NEW MEXICO - SECOND SESSION , 2020 INTRODUCED BY Sheryl Williams Stapleton and Linda M.
HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR HOUSE BILL 259 54 TH LEGISLATURE- STATE OF NEW MEXICO - SECOND SESSION , 2020 4 6 8 10 AN ACT RELATING TO HOMEOWNER ASSOCIATIONS;
Trujillo and Jim R.
CREATING THE UNFAIR OR DECEPTIVE TRADE PRACTICE OF ABUSIVE HOMEOWNER ASSOCIATION PRACTICES;
Trujillo and Daymon Ely 7 9 AN ACT RELATING TO HOMEOWNER ASSOCIATIONS;
REQUIRING THAT CERTAIN PROVISIONS OF THE HOMEOWNER ASSOCIATION ACT COMPLY WITH THE UNFAIR PRACTICES ACT.
PROHIBITING HOMEOWNER ASSOCIATIONS FROM FORECLOSING BASED ON ASSESSMENTS, FINES OR PENALTIES IMPOSED BY THE ASSOCIATION.
16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
e t 17 SECTION 1.
SECTION 1.
Section 47-16-6 NMSA 1978 (being Laws 2013, w l n d 18 Chapter 122, Section 6) is amended to read:
Section 47-16-18 NMSA 1978 (being Laws 2019, e t 17 Chapter 30, Section 10) is amended to read:
= = 19 "47-16-6.
w l n d 18 "47-16-18.
DUTIES OF A HOMEOWNER ASSOCIATION.-- a l i a e r 20 A.
ENFORCEMENT OF COVENANTS--DISPUTE = = 19 RESOLUTION.-- a l i a e r 20 A.
The association shall exercise any powers a t m m 21 conferred to the association in the community documents.
Each association and each lot owner and the a t m m 21 owner's tenants, guests and invitees shall comply with the d r e 22 Homeowners Association Act and the association's community c e s k 23 documents.
d r e 22 B.
The association shall have a lien on a lot for c e s k 23 any assessment levied against that lot or for fines imposed e a n b 24 against that lot's owner from the time the assessment or fine u [ becomes due.
If an assessment is payable in installments, the .217445.3 HJC/HB 259 full amount of the assessment shall be a lien from the time the first installment becomes due.
The association's lien may be foreclosed in like manner as a mortgage on real estate.
C.
Recording the declaration constitutes notice recorded in the office of the county clerk in the county or counties in which any part of the real property is located and perfection of the lien.
D.
Upon written request by a lot owner, the association shall furnish a recordable statement setting forth the amount of unpaid assessments against the lot owner's lot.
The statement shall be furnished within ten business days after receipt of the request and is binding on the association and the board.
E.
The provisions of Subsection B of this section shall comply with Section 3 of this 2020 act." SECTION 2.
Section 47-16-18 NMSA 1978 (being Laws 2019, e e 17 Chapter 30, Section 10) is amended to read:
e e n d 18 "47-16-18.
ENFORCEMENT OF COVENANTS--DISPUTE = = l ] 19 RESOLUTION.-- a l r i 20 A.
Each association and each lot owner and the t e a t owner's tenants, guests and invitees shall comply with the m m 21 e d [Homeowners] Homeowner Association Act and the association's r e 22 c e r c 23 community documents.
Unless otherwise provided for in the community u [ documents, the association may, after providing written notice .216682.2 and an opportunity to dispute an alleged violation other than failure to pay assessments:
Unless otherwise provided for in the community u [ documents or Section 3 of this 2020 act , the association may, .217445.3 - 2 - HJC/HB 259 after providing written notice and an opportunity to dispute an alleged violation other than failure to pay assessments:
If a person against whom a violation has been t e a t alleged fails to request a hearing or submit a written m m 21 e d r e 22 statement as provided for in Subsection C of this section, the c e r c 23 fine or suspension may be imposed, calculated from the date of e a n b 24 violation.
If a person against whom a violation has been t e a t alleged fails to request a hearing or submit a written m m 21 e d statement as provided for in Subsection C of this section, the r e 22 c e r c 23 fine or suspension may be imposed, calculated from the date of e a n b 24 violation.
A lot owner or the association may use a process .216682.2 - 2 - 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.
A lot owner or the association may use a process .217445.3 - 3 - HJC/HB 259 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.
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.
In addition to the provisions of this section, an association shall comply at a minimum with the provisions of Section 3 of this 2020 act." SECTION 3.
Nothing in this subsection precludes an association from seeking another remedy available at law." SECTION 2.
A new section of the Unfair Practices Act is enacted to read:
EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2020.
"[NEW MATERIAL] ABUSIVE HOMEOWNER ASSOCIATION PRACTICES-- PROHIBITION.-- A.
e e 17 - 3 - e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .216682.2
Abusive homeowner association practices shall constitute an unfair or deceptive trade practice consisting of:
e e 17 (1) failing to provide timely notice of a fee, e e n d 18 fine, assessment or penalty;
or = = l ] 19 (2) assessing an unconscionable fee, fine, a l r i 20 assessment or penalty.
t e a t B.
Failing to provide timely notice of a fee, fine, m m 21 e d assessment or penalty consists of not providing actual notice r e 22 c e r c 23 of the fee, fine, assessment or penalty within thirty days of e a n b 24 its imposition.
If a homeowner association fails to provide u [ notice of a fee, fine, assessment or penalty pursuant to this .217445.3 - 4 - HJC/HB 259 subsection, the homeowner association shall:
(1) not be able to pursue collection of the fee, fine, assessment or penalty;
and (2) remove the imposed fee, fine, assessment or penalty from a lot owner's balance.
C.
As used in this section:
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(1) "homeowner association" means an incorporated or unincorporated entity upon which maintenance and operational responsibilities are imposed and to which authority is granted in the declaration;
and (2) "lot owner" means a person or group of persons holding title to a lot, including a declarant." - 5 - 15 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .217445.3
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Action History

  1. action postponed indefinitely

  2. Sent to Senate Judiciary Committee

  3. passed House

  4. DO NOT PASS, replaced with committee substitute

  5. DO PASS committee report adopted

  6. referred to House Local Government, Land Grants & Cultural Affairs Committee & House Judiciary Committee

  7. printed

  8. withdrawn from committee

  9. not printed House Rules and Order of Business Committee

Sponsors

  • Daymon Ely · Primary
  • Jim R. Trujillo · Primary
  • Linda M. Trujillo · Primary
  • Sheryl Williams Stapleton · Primary

Sponsorship breakdown

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4 sponsors · 0 co-sponsors · 108 not signed on

Sponsors (4)

  • Ely, Daymon
  • Trujillo, Jim R.
  • Trujillo, Linda M.
  • Stapleton, Sheryl Williams

Co-sponsors (0)

None.

Not signed on (108)

108 members have not signed on to this bill.

Show all 108 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

housing
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Frequently asked questions

Who sponsors HB 259?
HB 259 is sponsored by Ely, Daymon, Trujillo, Jim R., Trujillo, Linda M., and Stapleton, Sheryl Williams.
What is the current status of HB 259?
This bill died with 2020 Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 259?
Track HB 259 free on One Click Politics — get push/email alerts when it moves.

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