SANTA FE, N.M., Feb. 5, 2016 (GLOBE NEWSWIRE) -- Associa, the industry's leading community management company including offices in Santa Fe and Albuquerque, joined other industry partners and New Mexico homeowners in opposing legislation approved today by the House Government, Elections and Indian Affairs Committee. House Bill (H.B.) 129, if it becomes law, would increase the dues paid by homeowners living in community associations.
Under current New Mexico law, homeowners' associations (HOAs) are required to provide prospective buyers a disclosure packet that details the financial health of the association, the rules of the association, and any current money owed or violations on the property they wish to purchase. This information is critical for home buyers to ensure that they are fully informed about the rules and costs of living in a community association. Associations or their managers are permitted to charge a reasonable fee to produce this information. H.B. 129 would establish an arbitrary fee cap that would prevent recovery of the costs of preparing disclosure packets. As a result, associations will have to raise their dues on all their members, essentially a tax increase for homeowners.
"The fee cap proposed under this bill is little more than unnecessary government price-fixing in the free market," explained John Krueger, Associa's vice president of government affairs. "And, worse, it would not save money but simply shift disclosure costs from the seller to all the other homeowners in an association." He added, "Practically speaking, association members will now receive a bill when their neighbor sells their home."
In residential real estate transactions, the cost of a disclosure packet is one of the smallest costs on a closing statement, often one percent or less. In contrast, items like realtor commissions, title costs, and insurance can total up to 80 percent of closing costs. Krueger suggested, "If legislators are truly interested in providing consumer relief, they should explore reducing those significant costs."
Building and managing successful communities for more than 35 years, Associa is the worldwide leader in community management with over 9,000 employees operating more than 170 branch offices in the United States, Mexico, Canada, the United Arab Emirates and South Africa. Based in Dallas, Texas, our industry expertise, financial strength, and innovation meet the unique needs of clients across the world with customized services and solutions designed to help communities achieve their vision. To learn more about Associa and its charitable organization, Associa Cares, go to www.associaonline.com or www.associacares.com.
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