The proposed bill would update current statutes related to condominium and homeowners associations by introducing new requirements for budget development and approval. Specifically, it mandates that the board of directors create annual operating budgets based on prudent estimates of common expenses, make these budgets available for review at least 48 hours before board meetings, and hold informational meetings to address member questions prior to budget implementation. Additionally, the bill outlines procedures for managing unanticipated expenses and modifies definitions related to expenses and assessments to enhance clarity.

Moreover, the bill imposes restrictions on regular assessments, prohibiting increases greater than 10% from the previous fiscal year without member approval, and requires unit owners to ratify special assessments or financing by a majority vote. It asserts that non-compliance with these provisions would invalidate actions or assessments. The bill also introduces provisions for the board to develop an annual budget after the declarant control period, hold informal meetings with unit owners, and establish reserve accounts for long-term maintenance, all aimed at improving transparency and accountability within condominium associations.

Statutes affected:
Introduced Version: 33-1202, 33-1215, 33-1243, 33-1245, 33-1802, 33-1803, 33-1241, 33-1246, 33-1217, 33-1255, 33-1212, 6-801, 33-741, 33-1242, 33-1219, 33-1216, 33-1218, 33-1226, 33-1256, 33-1248, 33-1250, 33-1258, 33-1801
House Engrossed Version: 33-1202, 33-1215, 33-1243, 33-1245, 33-1802, 33-1803, 33-1241, 33-1246, 33-1217, 33-1255, 33-1212, 6-801, 33-741, 33-1242, 33-1219, 33-1216, 33-1218, 33-1226, 33-1256, 33-1248, 33-1258, 33-1801