The bill requires that, before the executive board of a unit owners' association (HOA) in a common interest community brings suit against a developer or builder on behalf of unit owners, the board must:
- Notify all unit owners and the developer or builder against whom the lawsuit is being considered;
- Call a meeting at which the executive board and the developer or builder will have an opportunity to present relevant facts and arguments; and
- Obtain the approval of a majority of the unit owners after giving them detailed disclosures about the lawsuit and its potential costs and benefits.
(Note: This summary applies to this bill as introduced.)