NASHVILLE, Tenn. (WTVF) — A bill requiring homeowners associations to carry crime insurance is heading to Gov. Bill Lee's desk following an investigation into a property management company accused of losing more than $1 million in HOA dues.
The legislation, sponsored by Rep. Caleb Hemmer, passed the House with bipartisan support today after clearing the Senate on Monday.
I started looking into Gasser Property Management last year. Dozens of communities across four counties formerly run by the company discovered money was missing. When owner Emery Gasser stopped answering the phone, the HOAs started filing police reports.
Despite more than $1 million in missing dues, some communities will not be made whole because their insurance policies denied their claims.
Hemmer's bill requires HOAs to take out a fidelity bond, a type of crime insurance. It protects the money paid to HOAs from scams and dishonest board members, employers, or property managers.
"This bill was brought by constituents who noticed your reporting and reached out, and I noticed the reporting as well. So, just having an ear to the ground to see what’s happening and then just trying to help people, that’s truly our job at the end of the day," Hemmer said.
Hemmer said his neighbors started calling him after the initial reporting aired.
"Very much appreciate NewsChannel 5 reporting on this issue and bringing it to light to so many communities," Hemmer said.
If Lee signs the bill, it will take effect at the start of next year. However, questions remain about who will enforce the law.
Neighbors said they are happy and call the bill a good first step, but they know it will not solve everything the investigation exposed, as HOAs still have to apply for the bonds. Neighbors said they will keep pushing for stricter oversight of property managers.
Meanwhile, there is an ongoing Tennessee Bureau of Investigation criminal investigation into Gasser.
If you have more information about this investigation or have experienced similar issues with your HOA, please email me at Amanda.Roberts@NewsChannel5.com
This story was reported on-air by Amanda Roberts and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
