HB 2524

83(R) - 2013
Business, Industry, & Commerce

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Negative
  • Neutral


Rene Oliveira

Bill Caption

Relating to unenforceable restrictive covenants regarding standby electric generators affecting residential homes.

Fiscal Notes

No fiscal implication to the State is anticipated. No fiscal implication to units of local government is anticipated.

Bill Analysis

Summary: HB 2524 would prohibit property owner associations (HOAs) from prohibiting home owners from operating and installing standby electric generators on their property. If a licensed entity installs the generator, then it would meet this legislation's threshold for acceptability. The HOAs would be able to require the generators to abide by certain requirements; however, these requirements must be reasonable. Furthermore, the requirement on location of the generator cannot exceed 10% of the cost, the requirement that electrical and fuel line installation and connection cannot exceed 20% of the cost, approval prior to installation cannot prohibit installation if the installation abides by the specified requirements, the application requirements cannot exceed other improvement requirements, and the burden of proof lies with the HOAs if they seek to claim that a homeowner is not abiding by the requirements.

Analysis: HB 2524 would overregulate HOAs and interfere with agreements between the association and homeowners. When a homeowner moves into a neighborhood with an HOA, the homeowner is agreeing to abide by the HOA's requirements. There is a contract between the HOA and the homeowner. The particulars of the contract should not be between the HOA, the homeowner, and the state government. If the homeowner does not agree with the requirements, this individual can address the concern with the HOA. HOAs have a fiduciary duty to their members to handle property improvements responsibly and in the best interest of the neighborhood. The law should not alter this relationship. If the HOA is unreasonable, then the homeowner can seek relief in the court system. We oppose HB 2524.