The proposed bill would update current statutes governing condominiums and homeowners associations by introducing new requirements for the development and approval of annual operating budgets. Specifically, it mandates that the board of directors create budgets based on prudent estimates of common expenses and make these proposed budgets available for member review at least 48 hours prior to board meetings for approval. Additionally, the bill allows for the establishment of reserve accounts for long-term maintenance, prohibiting the board from using these funds without member authorization. It also outlines procedures for handling unanticipated expenses and requires member ratification for special assessments or financing, asserting that non-compliance with these provisions would invalidate board actions or assessments.

Key changes include a redefinition of "Assessment" to clarify that it pertains to charges for anticipated common expenses based on approved budgets, rather than just periodic assessments against each unit. The term "Common expense liability" is updated to reflect the allocation of common expenses to each unit as defined in the declaration. The bill also introduces guidelines for reserve accounts, limits on regular assessments requiring majority approval for increases over ten percent, and provisions for late payment charges with specific limits. Overall, these updates aim to enhance transparency, accountability, and member involvement in the financial management of condominiums and planned communities.

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