Bill > SB2326

This bill requires homeowners' associations (HOAs), which are organizations of property owners that manage and regulate residential subdivisions and collect money for common expenses, to obtain and maintain a blanket fidelity bond. This bond is essentially insurance that protects the HOA from financial losses due to theft or dishonesty by its officers, directors, employees, or the employees of any company hired to manage the HOA. The required coverage amount is the sum of the HOA's reserve funds plus one-quarter of its total annual assessment income, with a minimum coverage of $10,000, and this insurance can be purchased by the HOA's board of directors or its managing agent.