NASHVILLE, Tenn. (WKRN) — Gov. Bill Lee has signed new legislation to create an extra layer of protection for homeowners’ associations and homeowners who fall victim to theft or fraud by their HOA or the managing company.
The bill, sponsored by Sen. Jeff Yarbro (D-Nashville) and Rep. Caleb Hemmer (D-Nashville), will require HOAs to maintain a blanket fidelity bond, or a type of insurance that covers losses if someone handing HOA funds steals it or commits fraud.
It stems from allegations against Gasser Property Management Inc. that claim the company stole thousands of dollars from various HOAs it managed across Middle Tennessee. Hemmer told News 2 the Tennessee Bureau of Investigation is looking into the claims…