Bill > HB2338

This bill requires any homeowners' association (HOA), which is an organization of property owners that manages or regulates a residential subdivision, that collects 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 any employees of a managing agent hired by the HOA. The required coverage amount for this bond must be at least the total amount of the HOA's reserve funds plus one-fourth of its total annual assessment income, with a minimum coverage of $10,000, and this requirement will go into effect on January 1, 2027.