The bill amends the Horizontal Property Act to introduce new definitions and regulations concerning property owners associations in Arkansas. It defines "local government" and "property owners association," specifying that the latter is an incorporated nonprofit organization with at least 1,000 members, where lot owners are automatically members and subject to charges for the association's expenses. Additionally, the bill outlines "services traditionally performed by a local government," which includes road maintenance, sewer services, trash services, and water services, indicating that property owners associations may take on these responsibilities.

Furthermore, the bill mandates that property owners associations maintain detailed financial records and allows for an annual financial report audit. It stipulates that these records must be accessible to co-owners and introduces a provision for review by the Arkansas Legislative Audit for associations providing local government services, contingent upon approval from the Legislative Joint Auditing Committee. This enhances oversight and accountability for property owners associations, ensuring they operate transparently and in compliance with state regulations.

Statutes affected:
HB 1660: 18-13-102