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 "services traditionally performed by a local government," which encompasses essential services such as road maintenance, sewer, trash, and water services.

Furthermore, the bill mandates that property owners associations maintain detailed financial records and allows for an annual financial report audit. It specifies that these associations may be subject to review by the Arkansas Legislative Audit if they provide services typically associated with local governments, contingent upon approval from the Legislative Joint Auditing Committee. This aims to enhance transparency and accountability within property owners associations, ensuring they operate in the best interest of their members.

Statutes affected:
HB 1660: 18-13-102