Oklahoma's pending HB2800 - too many problems created by this bill

The most recent version of HB2800 has 8 sections and focuses on document retention, homeowner notification, fee disclosures, financial transparency, and restrictions on community associations (HOAs for short). The original HB2800 contained significantly problematic language regarding short-term and long-term rentals, but that language has since been removed from the bill. HB2800 hasn't improved with age. You can read the current version here.

HB2800 still contains significantly problematic language, and if adopted into law it would create chaos, confusion, conflict, and worst, more attorney’s fees for Oklahoma HOAs, which are most often administered by volunteer, non-compensated community association boards and officers. Duplicative of existing law, conflicting with existing law, and even conflicting with itself, this is a bill that cannot be improved with revision because the reasons for adopting such a law escapes a plain reading of the bill.

After reading my analysis below about HB2800 you agree the bill is harmful to Oklahoma HOAs and those living within an HOA, I urge you to contact your state senator and representative to communicate your concerns about this bill. If you are a volunteer board member or officer, explain to your senator or representative how a bill like this will affect your non-compensated work serving your neighbors. Here is a link where you can find your legislator and there contact information: https://www.oklegislature.gov/findmylegislature.aspx

Section 1 → Document Access

Section 1 of this bill requires the “managing entity of a real estate development” to retain and provide electronic access to a number of governing documents. However, it is unclear who or what is a “managing entity of a real estate development.” This undefined term could include a developer, builder, manager, one or more board members, or an HOA’s attorney. Under existing law (60 O.S. §851 et seq.) the term “real estate development” could mean commercial HOAs. Further, all of these documents are all already available and housed, many for free to the public, at the county clerk’s offices and websites. Does reference to the county clerk’s office satisfy the law’s requirements?

Section 1 further requires the “managing entity” to provide access to these instrument following request within 3 business days, a patently unreasonable timeframe. Existing law (18 O.S. 1065) provides for a 5-day response period on records requests to incorporated HOAs, yet this new law requires copies to be provided within three days.

Section 1 goes on to reference more undefined terms, such as “all parties to a home transaction.” Do “all parties” refer to real estate professionals to a transaction such as realtors, closers, and home inspectors? Who knows, because the proposed law provides no clues, but given later requirements on title companies (See Section 7 below), one must wonder. Does this language mean Section 1 only applies to residential HOAs? Again, one must wonder.

Section 2 → Notification of Updates

Section 2 requires an owner’s association to notify all homeowners within their “jurisdiction” “via email” or postal mail of any adoption of updated covenants, conditions, and restrictions. However, it is unclear what is an ““owners association’s jurisdiction.” Further, the language “via email” assumes the existence of an email address and that homeowner under the “owners association’s jurisdiction” has provided that email to an association. Further, what if a homeowner receives their mail at a location other than the address within the HOA’s “jurisdiction?” Is the burden on the HOA to locate a mailing address? Each of this points to not only the significant questions generated by the bill’s terms but also highlights to unreasonable burden placed on non-compensated volunteers who will be impacted by this law if adopted.

Section 2 requires covenant amendment notification to be within 5 business days after “adoption.” However, “adoption” may occur weeks or even months before filing of a covenant amendment. It may take a week or more to count amendment ballots. It is unclear under the proposed law whether “adoption” occurs when the ballots are counted and it is known that a sufficient percentage was reached to file the amendment or if “adoption” occurs when the amendment is actually recorded.

Again, it is not clear in reading the bill what problem this section is intended to solve. In practice, the vast majority of covenant amendments are adopted following actual notice and a voting process by the property owners. Then, each lot owner has constructive notice of the amendment once it is recorded with the county clerk (16 O.S. §16). So, what issue is this language supposed to cure?

Section 3 → Fee Disclosure and Limits

Section 3 requires “all entities tasked with managing an owners association” to disclose “individual fees.” However, it is unclear again what “all entities tasked with managing an owners association” includes or means. While there appears to be some attempt to define what constitutes “individual fees,” the bill language is lacking as explained below.

Section 3 also puts a cap on these “individual fees” at $175.00. However, the bill excludes fines, assessments, and services from these “individual fees.” It is unclear what is covered under “services.” Is a clubhouse rental a “service” that must be disclosed and is to be capped at $175.00? Moreover, the hard cap on “individual fees” fails to account for regional cost differences, labor intensity, complexity, or even inflation. This could create further budget constraints on HOAs already struggling to keep up with operating expenses.

Section 3 requires “upon request of documents reporting the condition of a property for sale, a homeowner shall not be charged a fee for a report on said property.” However, it is unclear what this means. Does this language create a statutory right to receive an inspection report they didn’t pay for? Is the idea that an HOA must store and provide such information? If so, this could cause some financial burdens on smaller HOAs that may not have the resources to store and provide such information, if they are even able to obtain this information. This language needs significant clarification and if it is a serious consideration, likely needs to be relocated to the residential disclosure act.

 Section 4 → Financial Records and Good Standing

Section 4 requires owners associations to keep records with regard to the financial condition of the owners association. However, HOAs are likely already doing this as a matter of course. Incredibly, Section 4 includes “audits” in the required financial records; however, an audit is likely cost prohibitive for all but a few Oklahoma HOAs.

Section 4  says that upon written request, they must issue a “good standing” statement regarding dues and fines within 5 business days, with a maximum fee of $50.00. The same issues raised above equally apply to the cap and lack of definition in Section 4.

Section 5 → Fee Structure Documentation

Section 5 requires owners associations or their “managing entities” to describe the fee structure and any potential charges in a “document” for homeowners. However, it is still unclear what “managing entities” means and what it includes. Again, why would Oklahoma need a law to require what covenants and bylaws already provide? Would a dues and fine structure set out within covenants or bylaws, as they often are, discharge the law’s description mandate?

Section 6 → Fine Schedule and Updates

Section 6 requires owners associations or their “managing entities” to describe the schedule of fines for violations in “documents” for homeowners. Again, “managing entities” is not defined. It is not clear what “documents” means like is a board-adopted rule good enough?

Section 6 arbitrarily restricts fines updates to once per calendar year at an annual association meeting. Again, the language generates questions: does the law override governing documents and varying adoption procedures? Does the lack of due process requirements in the statute supplant such common provisions in governing documents? Does the governing body adopt the once annual fines update at the annual meeting or are we to assume any updates can only occur on the vote of the general membership? If the general membership, does it take a simple majority? While I am certainly in favor of clear statutory allowance for and governance of monetary penalties, the proposed law needs significant improvement.

Section 7 → Title Insurance and Document Delivery

Section 7  concerns amendment to current statute pertaining to title companies and them providing copies of governing documents.

AI still working on getting Oklahoma solar panel information correct

While there seems to have been a change and now somewhat better info on Oklahoma solar panel law, covenants, and HOAs from a Google "Oklahoma solar panel law" search since our March 6, 2025 blog post, the search still takes you to a website containing incorrect information about Oklahoma law. It's still a rodeo of incorrect information. The first image shows the corrected information on the Google page, but when you take the first info link, you get the same incorrect information as before. Which goes to further illustrate, Google searches for specific legal questions are risky, and if you need competent information seek a person competent to provide it.

First, the Google search:

Now the rodeo:

Oklahoma Statutes 60 O.S. 820.1 does not prohibit covenants or HOAs from restricting solar panels and a quick review of the cited statute has nothing to do with covenants or HOAs.

Corporate Transparency Act BOI Suspended - no more HOA board reporting

Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies...

Following more than a year of unnecessary chaos, work, and for some significant expense created for volunteer, non-compensated community association boards and officers, the CTA BOI reporting requirements are now just a recent nightmare, and hopefully will not be recurring.

No, Oklahoma does not have a law prohibiting covenants or HOAs from restricting solar panels

Some solar panel installers and even attorneys are representing that Oklahoma statutes prohibit the restriction of solar panels by restrictive covenants in residential neighborhoods. It isn't true, but even AI pushes the false narrative. What follows is the top line AI Overview for a Google search "Oklahoma solar panel law":

Regarding Oklahoma law prohibiting covenant restrictions on solar panels, the AI summary is completely false. It is true a bill was introduced in 2023 in the Oklahoma House that would have restricted covenants pertaining to solar panels - HB1023 - but HB1023 is still singing I’m only a bill since it failed to make it out of committee. Perhaps this post will help our AI friends push better information.

FINCEN BOI good news and bad news

For those keeping tabs on the back and forth regarding deadlines to report Beneficial Ownership Interests under the Corporate Transparency Act, particularly for community association entities, there's recent good and bad news. The bad news is that the deadlines are back in effect, albeit extended to what appears to be March 21, 2025. The good news is that Treasury may be taking a closer look at whether community associations are a high use entity for terrorism or money laundering, and possibly lessening the burden on HOA and condo associations.

More here.

More FINCEN updates - registration stay in effect pending appeal

From FINCEN:

Alert [December 27, 2024]: Impact of Ongoing Litigation – Deadline Stay – Voluntary Submission Only

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

The Corporate Transparency Act (CTA) plays a vital role in protecting the U.S. and international financial systems, as well as people across the country, from illicit finance threats like terrorist financing, drug trafficking, and money laundering. The CTA levels the playing field for tens of millions of law-abiding small businesses across the United States and makes it harder for bad actors to exploit loopholes in order to gain an unfair advantage.

On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction. Texas Top Cop Shop is only one of several cases that have challenged the Corporate Transparency Act (CTA) pending before courts around the country. Several district courts have denied requests to enjoin the CTA, ruling in favor of the Department of the Treasury. The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional. For that reason, the Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024 and separately sought of stay of the injunction pending that appeal.

On December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction entered in the case of Texas Top Cop Shop, Inc. v. Garland, pending the outcome of the Department of the Treasury’s ongoing appeal of the district court’s order. FinCEN immediately issued an alert notifying the public of this ruling, and recognizing that reporting companies may have needed additional time to comply with beneficial ownership reporting requirements, FinCEN extended reporting deadlines. On December 26, 2024, however, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s December 23, 2024 order granting a stay of the preliminary injunction. Accordingly, as of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not currently required to file beneficial ownership information with FinCEN.

BOI registrations stayed nationally per a 5th Circuit injunction

Great news: A 5th Circuit judge has issued a nationwide preliminary injunction on CTA BOI registrations. While the case does not involve HOA/condo board members, the ruling is expansive and covers all registrations. We'll see where this goes, but hopefully it sends BOI registrations by HOA and condo association boards into file 13. Read the court's decision is here.

HOA Legal Training Parts 1 & 2 - October 8 & 10

It's time for the next round of part 1 and part 2 of Oklahoma HOA legal training and issues discussion hosted by Neighborhood Alliance of Central Oklahoma. We're approaching 20 years of partnering with NACOK for these trainings!

Register here

Are HOAs FINCEN BOI reporting companies? (Part 2)

Regarding who must report Beneficial Owner Information for an incorporated HOA, FINCEN's FAQ has this to say:
D. 13. Who is the beneficial owner of a homeowners association?

A homeowners association (HOA) that meets the reporting company definition and does not qualify for any exemptions must report its beneficial owner(s). A beneficial owner is any individual who, directly or indirectly, exercises substantial control over a reporting company, or owns or controls at least 25 percent of the ownership interests of a reporting company.

There may be instances in which no individuals own or control at least 25 percent of the ownership interests of an HOA that is a reporting company. However, FinCEN expects that at least one individual exercises substantial control over each reporting company. Individuals who meet one of the following criteria are considered to exercise substantial control over the HOA:

the individual is a senior officer;
the individual has authority to appoint or remove certain officers or a majority of directors of the HOA;
the individual is an important decision-maker; or
the individual has any other form of substantial control over the HOA.

[Issued April 18, 2024]

Are HOAs FINCEN BOI reporting companies? (Part 1)

Note: FINCEN updated their FAQ on BOI today. Regarding HOAs, it says:
C. 10. Are homeowners associations reporting companies?

It depends. Homeowners associations (HOAs) can take different corporate forms. As with any entity, if an HOA was not created by the filing of a document with a secretary of state or similar office, then it is not a domestic reporting company. An incorporated HOA or other HOA that was created by such a filing also may qualify for an exemption from the reporting requirements. For example, HOAs designated as 501(c)(4) social welfare organizations may qualify for the tax-exempt entity exemption. An incorporated HOA that is not designated as a 501(c)(4) organization, however, may fall within the reporting company definition and therefore be required to report BOI to FinCEN.

[Issued April 18, 2024]

December 5, 2023 HOA Legal Issues video

Part 1 of the HOA Legal Issues online education from December 5, 2023 is now available.

HOA Legal Issues Seminar Slides - June 13, 2023 part 1

Looking for the slides from part 1 of the HOA Legal Issues Seminar hosted by Neighborhood Alliance? Here is the link: June 13, 2023 HOA NA Legal Issues - Part 1 13JUNE23

Part 2 slides will be posted soon along with the full videos of all four hours of training.

Matthew L. Winton
Oklahoma homeowner association lawyer

HOA Legal Issues Seminar Slides - Norman

For those attending the Norman HOA Legal Issues Seminar this past Tuesday and Thursday, here are the slides:

Download 2023 NA Legal Issues - Part 1

Download 2023 NA Legal Issues - Part 2

The videos will be posted on the Winton Law YouTube channel in the upcoming days, and the Oklahoma Community Association Handbook information is here.

Matthew L. Winton
Oklahoma community association attorney

Newly Updated Oklahoma Community Association Handbook

New Handbook Update - The Oklahoma Community Association Handbook, Oklahoma's only comprehensive resource on HOAs, condos, and community association law, operations, and management is now updated in the Third Edition. The 400+ page resource includes commentary, best practices, helpful HOA and condo forms, statutes and case law. Hardcopies of the Third Edition, Oklahoma Community Association Handbook are available by contacting office@wintonlaw.net and the ebook for your Kindle or other device is available at Smashwords.

HOA Legal Issues workshop part 2

Part 2 of this past week's HOA Legal Issues Workshop, presented by Matthew L. Winton, hosted by the Neighborhood Alliance of Central Oklahoma and sponsored by Michael Biddinger Real Estate.

HOA Legal Issues workshop part 1

Part 1 of this past week's HOA Legal Issues workshop. See all the posted HOA/condo videos on the Winton Law You Tube channel.

COHBA HOA/Developer Transition workshop - Slides

For those attending the 2022 Central Oklahoma Home Builder's Association HOA/Developer Transition workshop luncheon, I have made the slides used during my presentation available in the "Download" links below. Thank you to COHBA and Becky Ivins for hosting and allowing me the opportunity to share these community association and developer-helpful materials. Thanks also to Ken McBride of Chicago Title, Georgie Rasco of Central Oklahoma Neighborhood Alliance, and April Butler of Aria HOA Management for the great panel discussion. May the sun continue to shine on our Oklahoma community associations.

Matthew L. Winton

Download General HOA Condo presentation 25AUG22
Download 2022 COHBA Transition Issues luncheon 25AUG22

2022 Central Oklahoma Home Builder's Association, Developer's Luncheon: HOA Workshop

For Oklahoma developers, I will be presenting at an HOA workshop hosted by the Central Oklahoma Home Builder's Association at their OKC office. Calendar event is here. We will be discussing in depth developer transition issues: how to forecast and avoid problems, drafting the governing documents with transition in mind, and conducting the transition meeting.

Matthew L. Winton, HOA lawyer

This week HOA Legal Issues zoom parts 1 & 2

For over 15 years, Central Oklahoma Neighborhood Alliance and I have presented HOA Legal Issues seminars. This week parts 1 and 2 are conducted by zoom, are hosted by Michael Biddinger Real Estate, and you can register here.

Matthew L. Winton, HOA lawyer

HOA and Condo Association legal issues workshop slides part 1 and 2 June 14 and 16, 2022

Click the links below for the slides from the June 14 and 16 HOA/Condo legal issues workshop hosted by the Central Oklahoma Neighborhood Alliance and sponsored by Michael Biddinger Real Estate. As always, the discussion and questions were informative and relevant.

Download 2022 NA Legal Issues V.2 - Part 1

Download 2022 NA Legal Issues - Part 2

Matthew L. Winton

Oklahoma community association attorney