HB 2118
In CommitteeHouse
Community restrictions
Concerning common interest community restrictions.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill prevents property owners' associations from imposing stricter rules on how owners use their units, lots, or apartments than existed at the time the owner bought the property—unless the owner agrees in writing. It also requires associations to record exceptions upon request and clarifies how these protections apply to future owners and lenders.
- Associations (including homeowners', condominium, and apartment owners’ associations) cannot enforce stricter rules on how owners use their property than existed when the owner bought it—unless the owner gives written consent.
- Owners can request that their specific use rights be recorded in county land records to protect those rights against future rule changes.
- New restrictions only apply to future owners if they did not inherit ownership from the prior owner or acquire the property through foreclosure.
- The law protects the right to rent property, develop it legally, and use it for residential, agricultural, or commercial purposes—as long as those uses were allowed when the owner bought the property.
- The law does not apply to rules required by federal, state, or local law, or to rules not enforced by the association.
Who is affected
- Current unit/lot/apartment owners in common interest communities — Homeowners in common interest communities (like condos, townhomes, or planned neighborhoods) who bought their property before the bill takes effect; they retain the right to use their property as it was allowed when they purchased it, unless they agree in writing to new rules.
- Future buyers in common interest communities — Future buyers of units, lots, or apartments in common interest communities; they may be bound by newer, stricter rules if they buy after the rules change and they do not share ownership with the prior owner or acquire the property through foreclosure.
- Property owners' associations — Homeowners' associations, condominium associations, and apartment owners' associations; they must follow new rules about enforcing restrictions and may need to record exceptions upon request by owners.
- Lenders/financial institutions — Lenders who acquire property through foreclosure; they gain the right to claim the same use protections as the prior owner under certain conditions.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Current owners gain strong, legally enforceable protection against retroactive tightening of use restrictions—preserving their reasonable expectations at time of purchase, especially critical for retirees, fixed-income households, and those who rely on existing rental income or home-based businesses to afford housing.
HousingPeopleRef: Sec. 1(1)(a), Sec. 2(1)(a), Sec. 3(1)(a), Sec. 4(1)(a)Explicit protection of rental rights—including for any duration—strengthens housing supply and affordability, especially in high-cost areas where short-term and long-term rentals help owners offset mortgage payments, support aging in place, or provide temporary housing for family members.
HousingPeopleRef: Sec. 1(6)(b), Sec. 2(6)(b), Sec. 3(6)(b), Sec. 4(6)(b)Protecting lawful development and use rights (e.g., adding ADUs, solar panels, home offices) supports climate resilience and economic opportunity—particularly for moderate-income households seeking to adapt homes for remote work, caregiving, or small business operations.
HousingPeopleRef: Sec. 1(6)(c), Sec. 2(6)(c), Sec. 3(6)(c), Sec. 4(6)(c)The exception for owners who share ownership with prior owners (e.g., family transfers, joint tenancy) and lenders acquiring via foreclosure helps preserve intergenerational equity and supports housing stability during economic distress or inheritance transitions.
HousingLean peopleRef: Sec. 1(2), Sec. 2(2), Sec. 3(2), Sec. 4(2)Mandating recording of use exceptions in county land records improves transparency and reduces future disputes—though the burden falls on owners, it creates a public record that can aid title clarity and reduce litigation risk over time.
HousingLean peopleRef: Sec. 1(1)(b), Sec. 2(1)(b), Sec. 3(1)(b), Sec. 4(1)(b)
Potential Concerns (5)
Future buyers in common interest communities may be locked into stricter rules if they purchase after new restrictions are adopted and they do not inherit ownership or acquire via foreclosure—creating a two-tiered system where earlier buyers retain broader rights while later buyers face more limitations, undermining predictability and equity in property rights.
HousingPeopleRef: Sec. 1(2), Sec. 2(2), Sec. 3(2), Sec. 4(2)The requirement that owners proactively request and pay for recording of use exceptions places administrative burden and out-of-pocket cost on individual owners—especially seniors, low-income households, or those unfamiliar with title processes—potentially leaving many unaware or unable to secure the protection the bill purports to provide.
HousingLean peopleRef: Sec. 1(1)(b), Sec. 2(1)(b), Sec. 3(1)(b), Sec. 4(1)(b)While the bill protects the right to rent, it does not prevent associations from imposing other restrictions (e.g., short-term rental fees, occupancy limits, or insurance requirements) that could effectively nullify rental flexibility—particularly for owners relying on short-term or vacation rentals to afford housing or supplement income.
HousingLean peopleRef: Sec. 1(6)(b), Sec. 2(6)(b), Sec. 3(6)(b), Sec. 4(6)(b)The sunset date of January 1, 2028 creates regulatory uncertainty: owners and associations may delay investments or legal compliance due to the bill’s temporary nature, and future legislatures may repeal or weaken the protections—undermining long-term planning and property value stability.
HousingLean peopleRef: Sec. 1(5), Sec. 2(5), Sec. 3(5), Sec. 4(5)The exemption for rules “not subject to enforcement by an association” creates a loophole: associations can delegate enforcement to third parties (e.g., property managers, private contractors), effectively circumventing the law’s core restriction on new rules—reducing enforceability and diluting protections.
HousingPeopleRef: Sec. 1(3)(a), Sec. 2(3)(a), Sec. 3(3)(a), Sec. 4(3)(a)
Who Is Most Affected
Current owners benefit significantly: they retain use rights as defined at purchase, especially protecting rental income and home-based activities. However, those who rely on informal or unrecorded permissions (e.g., verbal board approvals for pets or modifications) may face disputes if those permissions were never formally documented.
Future buyers face a two-tiered system: those buying after new restrictions are adopted lose the grandfathered rights of earlier buyers unless they inherit or foreclose. This may reduce housing affordability and mobility, especially for first-time buyers priced out of older, more permissive communities.
Associations face increased administrative costs (e.g., tracking historical restrictions, responding to recording requests) and reduced flexibility to update rules for safety, sustainability, or market changes. Large, well-resourced associations may adapt more easily than small, volunteer-run boards—potentially accelerating consolidation or dissolution of smaller associations.
Lenders gain explicit protection for foreclosed properties, preserving use rights of prior owners—supporting portfolio stability and reducing risk in distressed markets. However, this primarily benefits institutional lenders, not community banks or credit unions with smaller portfolios.