The proposed bill seeks to amend current statutes governing the termination of declarant control in homeowners' associations (HOAs) and condominiums. It would shorten the termination timeline from four years to two years after all units are sold by the declarant and require that declarant control ends 90 days after 75% of units are conveyed to non-declarant owners. The bill also mandates that the termination of control is effective upon the declarant recording an instrument in the County Recorder's office and notifying unit owners. Additionally, it introduces new responsibilities for declarants, such as managing the association with reasonable care and providing annual reports, while imposing penalties for non-compliance.

Moreover, the bill would repeal outdated provisions and insert new language to clarify the definition of "assessment" and the rights and responsibilities of both declarants and unit owners. It establishes a clear process for electing a board of directors post-declarant control and ensures that contracts with the declarant include termination clauses. By removing obsolete language and integrating new provisions, the bill aims to enhance transparency, accountability, and the overall governance of HOAs, thereby strengthening the rights of unit owners while maintaining certain rights for the declarant.

Statutes affected:
Introduced Version: 33-1202, 33-1243, 33-1245, 33-1255, 33-1802, 33-1803, 33-1820, 33-1241, 33-1246, 33-1217, 33-1230, 33-1212, 6-801, 32-2183, 33-741, 33-1242, 33-1250, 33-1248, 33-1258, 33-1801, 32-2199.01