The proposed bill would update current statutes governing condominium and homeowners associations by introducing new requirements for budget development and member engagement. Specifically, it mandates that the board of directors create an annual operating budget based on prudent estimates of common expenses, which must be made available for member review at least 48 hours prior to the approval meeting. Additionally, the bill allows for the establishment of reserve accounts for long-term maintenance, prohibits unauthorized spending from these accounts, and requires an informational meeting before the budget is implemented. It also stipulates that any special assessments or financing must be ratified by a majority vote of the members, and failure to comply with these budget provisions would render related actions invalid.

Furthermore, the bill modifies definitions related to assessments, clarifying that they pertain to charges for anticipated common expenses based on approved budgets. It limits regular assessment increases to a maximum of 10% from the previous year without member approval and introduces guidelines for addressing unanticipated expenses through supplemental budget amendments. The bill also removes outdated provisions regarding budget ratification processes and ensures that penalties for late charges are reasonable and clearly defined. Overall, these updates aim to enhance transparency, accountability, and communication between the board and unit owners, ensuring that financial decisions reflect the community's consent.

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