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Lawmakers gave second-round approval March 3 to a bill that would provide a mechanism for a dissolved Home Owners Association (HOA) to achieve reinstatement.
LB304, introduced by Lincoln Sen. Matt Hansen, would adopt the Municipal Custodianship for Dissolved Homeowners Associations Act. The bill would allow a municipality to be appointed custodian over a dissolved HOA.
Hansen said the bill would allow a municipality to take over maintenance of any common areas that previously had been maintained by the HOA.
“These dissolved HOAs present problems to the municipalities,” he said, adding that there are currently 26 dissolved HOAs in Lincoln.
An Urban Affairs Committee amendment, adopted 26-0, made technical changes to the bill. The amendment also established a $100 fee for an HOA seeking reinstatement after being dissolved for more than five years and limited the bill’s provisions to HOAs located within the city limits of a municipality.
The bill advanced to select file on a 27-0 vote.