Adds to existing law to provide for automatic dissolution of homeowner's associations.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 708 BY BUSINESS COMMITTEE AN ACT1 RELATING TO THE HOMEOWNER'S ASSOCIATION ACT; AMENDING CHAPTER 32, TITLE 55,2 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 55-3204C, IDAHO CODE, TO ES-3 TABLISH PROVISIONS REGARDING THE AUTOMATIC DISSOLUTION OF HOMEOWNER'S4 ASSOCIATIONS; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE5 DATE.6

Be It Enacted by the Legislature of the State of Idaho:7

SECTION 1. That Chapter 32, Title 55, Idaho Code, be, and the same is8 hereby amended by the addition thereto of a NEW SECTION, to be known and des-9 ignated as Section 55-3204C, Idaho Code, and to read as follows:10 55-3204C. AUTOMATIC DISSOLUTION OF HOMEOWNER'S ASSOCIATIONS. (1) Any11 homeowner's association that has been in existence for ten (10) years or12 more, pursuant to the date of filing of the articles of incorporation, as13 of July 1, 2026, shall automatically dissolve on July 1, 2029, unless its14 members vote against such dissolution pursuant to the provisions of this15 section. Any homeowner's association that has been in existence for less16 than ten (10) years as of July 1, 2026, or that is created after July 1, 2026,17 shall automatically dissolve after ten (10) years from the date of filing of18 the articles of incorporation unless its members vote against such dissolu-19 tion pursuant to the provisions of this section.20 (2) A homeowner's association shall hold a meeting of its membership21 before the automatic dissolution dates provided for in subsection (1) of22 this section to provide an opportunity for its members to vote against23 the automatic dissolution of the homeowner's association. A homeowner's24 association shall give notice to its members of the proposed meeting in ac-25 cordance with the provisions of section 30-30-505, Idaho Code. The notice26 shall state that the purpose, or one (1) of the purposes, of the meeting is27 to consider the automatic dissolution of the homeowner's association and28 shall contain or be accompanied by a copy or summary of a plan of dissolution.29 Automatic dissolution of a homeowner's association shall not occur if a ma-30 jority of the eligible voters vote against such automatic dissolution.31 (3) Unless otherwise provided for in the declaration or governing doc-32 uments, all common property, including common areas, limited common areas,33 other property or improvements owned or maintained by a homeowner's associa-34 tion, or property owned in common by the members of a homeowner's association35 shall remain dedicated to the common use of the members of the homeowner's36 association. The plan of dissolution shall provide for the disposition of37 the assets of a homeowner's association by transfer to a successor entity,38 the lot owners, or a local government.39 (4) If members of a homeowner's association do not vote against the au-40 tomatic dissolution of the homeowner's association, the homeowner's asso-41 ciation shall dissolve pursuant to the plan of dissolution. If members of a42

2 homeowner's association vote against the automatic dissolution of the home-1 owner's association, the homeowner's association shall continue under the2 same terms. Homeowner's associations shall automatically dissolve ten (10)3 years after the date of the first successful vote against automatic disso-4 lution. Automatic dissolution shall occur every ten (10) years thereafter5 while a homeowner's association is in existence unless and until the members6 fail to vote against such dissolution and the homeowner's association is au-7 tomatically dissolved as provided in this section.8

SECTION 2. An emergency existing therefor, which emergency is hereby9 declared to exist, this act shall be in full force and effect on and after10 July 1, 2026.11