IDAHO — Idaho Attorney General Raúl Labrador announced court settlements with two Idaho homeowners' associations and an HOA management company on the basis that homeowners were charged illegal transfer fees.
According to a press release from the Attorney General's Office, the illegal fees violated both the Idaho Homeowners Association Act and the Idaho Consumer Protection Act. The fees weren't disclosed in their governing documents, according to the homeowners.
Idaho law states that HOAs are required to clearly disclose transfer fees in their conditions, covenants, and restrictions. Additionally, management companies do not have authority to charge transfer fees.
"Idaho families work hard to buy a home, and they deserve to know every cost before they sign," Attorney General Labrador stated.
"Hidden fees collected without legal authority violate Idaho law, and we will hold HOAs and the companies that manage them accountable."
The press release continues on, saying that Pristine Springs Homeowners Association of Ada County, Armstrong Park Homeowners Association of Kootenai County, and Park Pointe Management Services of Ada County all signed Assurances of Voluntary Compliance (AVC).
An AVC is a legally binding agreement between a state Attorney General and an individual or business accused of violating the law, or that may potentially violate the law.
The Attorney General's Office says it will monitor the fee practices of all three entities.
Armstrong Park and Park Pointe Management are required to refund all homeowners improperly charged a transfer fee within a designated time limit.
