Homeowners’ associations in NM are governed by the New Mexico Homeowner Association Act which went into effect on July 1st, 2013. It applies to all HOAs regardless of the establishment date with some exceptions (Section 13). All homeowners’ associations must record a notice of the association with the county clerk in the county in which the community is located. If an HOA fails to record notice, the ability to charge assessments, fines, or enforce liens will be suspended. This act does not apply to Condominium Associations.
Homeowners Association’s Rights and Responsibilities
The primary purpose of an HOA is to maintain the common elements of the community and protect homeowner property rights. To create a budget for maintenance costs, the association may charge regular assessments.
If an account becomes delinquent, the community association can charge additional fines and even place liens on the property. In extreme circumstances, the HOA may foreclose on the property despite on-time mortgage payments.
It is the responsibility of the board of directors to maintain detailed records for the association:
Declaration and bylaws.
Names of current association members.
Minutes of all meetings must be kept on record for at least five years.
Records of actions taken at meetings.
Current operating budget.
Current assessments – regular and special assessments.
Most recent audit if one exists.
Any current contracts with vendors.
Current insurance policies.
All records must be made reasonably available to association members. Copies must be made and sent upon request. The association may not charge homeowners for information except for the cost of making copies.
The board is responsible for creating and adopting an annual budget. Once a budget is adopted, a summary of the new budget must be sent to all homeowners.
If a community contains more than 100 units, an annual audit from a certified public accountant is required no more than 180 days after the end of the fiscal year. For communities under 100 units, an audit is not required but may be requested by a majority vote from homeowners.
Homeowners have the right to vote during board elections and to vote on amendments to the declaration or bylaws. Voting rights are not regulated by the Homeowners Association Act and will vary between communities.
Association members must be allowed reasonable access to all community documents including financial information. Copies of association documents can be made upon request to the board.
NM Homeowner Association Act
HOA rules in New Mexico vary widely. It is important to read and understand all community regulations before purchasing property in an HOA-managed community. Most homeowners’ associations require the signing of a contract upon purchase.
To ensure that your community association is being run following all state and local laws, it helps to have a professional on your side. CSM has a team of experienced professionals that have worked with communities in almost every state in the US. Specializing in HOA financial management, we can help your board of directors manage association finances, write and submit documents, and prepare for audits. If you have any questions regarding state HOA laws and regulations, give us a call at (865) 315-7505, contact us online or email us at email@example.com.