Part 2 – Changes to WUCIOA for All Communities
Everybody’s talking about how the “WUCIOA for All” bill (SB 5796) will make WUCIOA applicable to all pre-existing communities, but even WUCIOA communities are in for some changes. Contact your community’s attorney for a full list that may be more applicable to you, but here are a handful of the changes.
First, while WUCIOA originally identified voting ballots as records to be disclosed to Owners, ballots for most votes can now stay confidential. Presently, unredacted ballots are an association record for owners to view and copy, which, as you might suspect, has created conflicts for many communities. We still recommend that associations keep ballot records, but boards and managers will be able to confidently redact owner information before disclosing them.
Another positive change is all associations will need to provide resale certificates before a sale. This is already a requirement contained in the governing documents for many communities, but making the requirement statutory should fill in the gaps, especially for HOAs. However, it also means more work for managers, as all communities will now need to provide resale certificates. The buyer probably receives the biggest benefit under this scheme with a side benefit to the association, because a sale of property cannot occur without the association providing a delinquency information, which better ensures that all parties are aware of any outstanding liabilities. Additionally, owners will provide contact information, so boards and managers know who owns and who is living in their communities. These changes should make communities run more seamlessly.
However, some things will make life more difficult for many communities, unless the statute is amended before 2028. One example is the requirement to provide Owners with significant advance notice of Board Meetings. WUCIOA communities are now required to provide 14 days’ notice of a meeting, must provide all materials to Owners that are provided to Boards, and must provide Owners with an opportunity to participate in the meeting to discuss whatever they want regardless of the agenda topics. Moreover, “emergency” board meetings are no longer allowed. The legislature removed the “emergency” exception from the requirement to provide owners notice, replacing it with a requirement that owners be provided notice “in a manner that is practicable and appropriate under the circumstances.” If this seems ambiguous to you, we agree!
Another disappointment is that owners must still “consent” to receive electronic (e-mail or text) notice, and Owners can keep their email addresses confidential. This change requires additional steps for associations and managers and increases the risk of liability, so make sure to blind carbon copy (“bcc”) when sending out community-wide emails! Stay tuned for additional articles on the impact, issues, and best practices for navigating WUCIOA for All and start planning!
