The bill amends the Horizontal Property Act to enhance the regulation of property owners associations in Arkansas. It introduces new definitions, including "local government" and "property owners association," which clarify the roles and responsibilities of these organizations. A property owners association is defined as an incorporated nonprofit organization with at least 1,000 members, where lot owners are automatically members and subject to charges for the association's services. Additionally, the bill specifies that services traditionally performed by local governments, such as road maintenance and sewer services, can be provided by property owners associations.

Furthermore, the bill mandates that property owners associations maintain detailed financial records and allows for an annual financial report audit if they provide services typically associated with local governments. The Arkansas Legislative Audit may review these associations, contingent upon approval from the Legislative Joint Auditing Committee. This aims to ensure transparency and accountability in the financial dealings of property owners associations, enhancing oversight and protecting the interests of the community members involved.

Statutes affected:
HB 1660: 18-13-102