Legislative Update: Homeowners’ Associations
In 2021 the Legislature enacted Miss. Code Ann. §§79-11-751 to -759, entitled Regulation of Homeowners Associations Management Agents and the Management of Association Assets. This legislation was enacted in response to the alleged embezzlement of money from multiple homeowners’ associations by an association management company. Among other things, the legislation imposed additional requirements on boards of directors of homeowners’ associations to review and approve bank statements and transfers of funds. Many homeowners’ associations complained that the limitations were too restrictive and interfered with their ability to conduct routine business. In HB 933, the Legislature made changes to the 2021 statutes to delete the requirement that approval of transfers of funds by boards be in writing, require boards to review only the most recent reconciliations of its operating and reserve accounts, allow a board to get insurance rather than a fidelity bond, and allow a board rather than the members of the association to vote not to require a fidelity bond.