Idaho Community Association Law: What Changed In 2025 And 2026

Idaho community association law has changed materially over the last two legislative sessions. The changes are especially important for newer homeowners associations, associations dealing with accessory dwelling units, and boards enforcing rental restrictions.

Three developments deserve particular attention.

NEW RULES FOR DEVELOPER CONTROL AND HOA GOVERNANCE

House Bill 361, enacted as Chapter 204 in 2025 and effective July 1, 2025, added new rules governing homeowners associations formed after July 1, 2025. Idaho Code section 55-3204A now establishes a statutory framework for the transition from declarant control to homeowner control.

The governing documents may provide for a period of declarant control during which the declarant may appoint and remove board members and officers. But the statute imposes two important transition points. Once 75 percent of the lots have been conveyed to owners other than the declarant or qualifying builders, at least one-third of the board positions must be offered for election by non-declarant owners within 180 days. Once 95 percent of the development is built and occupied, the declarant must begin the process of turning over full control and complete the transition within 12 months. An owner may seek injunctive relief if the declarant fails or refuses to comply after written notice.

The same legislation also imposes new board-composition and proxy rules. Except during declarant control, only one owner per lot may serve concurrently on the board. In associations with at least 20 residences, one owner may not hold proxies representing more than 50 percent of the total votes, and two people who live in the same household as their primary residence generally may not serve simultaneously on the board. These restrictions do not apply to associations with fewer than 20 residences or during declarant control. See Idaho Code §§ 55-3204A, 55-3204B.

The practical point is straightforward: developers and owners of new communities should build the statutory transition requirements into the project documents and governance calendar from the beginning. Existing communities should also confirm whether their governing documents and board practices remain consistent with the statute, particularly when a declaration is being amended or a new phase is being added.

IDAHO’S NEW ADU LAW LIMITS HOA RESTRICTIONS

Senate Bill 1354, enacted as Chapter 265 in 2026, took effect July 1, 2026. The legislation amended Idaho Code section 55-3212 and added new provisions to the Local Land Use Planning Act concerning accessory dwelling units, or ADUs.

For homeowners associations, the key change is that restrictive covenants may not be added, amended, or enforced in a manner that strictly prohibits qualifying internal accessory dwelling units. The legislation also establishes statewide land-use rules intended to make certain ADUs a permitted residential use under defined conditions.

The new law matters because it narrows the ability of an association to use its recorded covenants as an across-the-board prohibition on ADUs. At the same time, the legislation does not eliminate every form of association regulation. The final law retains room for reasonable regulation, and local building, fire, utility, setback, and similar requirements continue to matter. The precise application will depend on the type of ADU, the governing documents, and the applicable local regulations.

Boards should therefore review any covenant language that purports to prohibit ADUs categorically. Associations also should distinguish between a prohibited use, a reasonable development standard, and a local-government requirement. Those are not interchangeable.

THE IDAHO SUPREME COURT HAS GIVEN NEW CLARITY TO RENTAL RESTRICTIONS

In North Henry’s Lake Homeowners Association, Inc. v. Norton, decided in 2026, the Idaho Supreme Court affirmed a decision refusing to enforce a later-adopted short-term-rental restriction against owners whose property interests were not subject to the owners’ express written consent required by Idaho Code section 55-3211.

Section 55-3211 provides that an HOA may not add, amend, or enforce a covenant that limits or prohibits rental of property for any amount of time unless the owner of the affected property expressly agrees in writing at the time of the addition or amendment. The statute was enacted in 2022, but the Norton decision is significant because the Court treated the statutory text as unambiguous and applied it according to its terms.

For associations considering new short-term-rental restrictions, the lesson is important. A favorable member vote or a properly recorded amendment does not necessarily answer the statutory question. The association must also determine whether the affected owners provided the written consent required by section 55-3211. In Norton, the Court held that the statute protects the property at the time the restriction is added, rather than allowing the restriction to follow the property automatically through later transfers.

That holding deserves particular attention when an association is amending its CC&Rs today. The safest drafting approach is to address the statutory consent requirement expressly and to distinguish between restrictions that already apply and new restrictions being adopted. Associations should not assume that zoning, a municipal short-term-rental license, or general enforcement authority resolves the issue. The recorded declaration and section 55-3211 must be analyzed together.

WHAT ASSOCIATION BOARDS SHOULD DO NOW

The recent changes point to a broader trend in Idaho law: the Legislature and courts are increasingly defining the boundaries of association power with greater precision. For boards and developers, that makes careful document review more important, not less.

Associations should review their governing documents and operating practices against the current version of Idaho Code chapter 32, paying particular attention to developer-control provisions, board composition, proxy practices, ADU restrictions, and rental restrictions. Boards considering covenant amendments should also identify which statutory provisions apply to the proposed amendment before circulating it to the membership.

For developers, the better practice is to treat statutory compliance as part of the initial declaration and transition planning rather than as an issue to address after the association is operational. For existing associations, the immediate question is whether a current restriction was adopted and is being enforced in a manner permitted by current Idaho law.

Idaho’s community association statutes continue to evolve. The most important lesson from the recent changes is that a board should not assume a provision is enforceable simply because it appears in the recorded CC&Rs. Statutory limits can apply to both the content of the restriction and the manner in which it was adopted or enforced.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.