The bill amends the Horizontal Property Act to introduce new definitions and regulations concerning property owners associations in Arkansas. It defines "local government" to include counties, cities, and other state entities, and establishes a "property owners association" as a nonprofit organization with specific membership and financial criteria. Additionally, it outlines what constitutes "services traditionally performed by a local government," such as road maintenance and sewer services, which may be provided by these associations.

Furthermore, the bill mandates that property owners associations maintain detailed financial records and allows for an annual financial report audit if the association provides local government services. The audit can be conducted by the Arkansas Legislative Audit, contingent upon approval from the Legislative Joint Auditing Committee. This aims to enhance transparency and accountability within property owners associations, ensuring that their financial activities are subject to scrutiny.

Statutes affected:
HB 1660: 18-13-102