The proposed bill seeks to modernize the statutes governing the termination of declarant control in condominium and planned community homeowners' associations (HOAs). Key updates include a reduction in the time frame for declarant control termination from four years to two years after the cessation of sales, or 90 days after 75% of units are sold. The bill mandates that declarants must record an instrument to relinquish control and notify unit owners, while also introducing penalties for non-compliance. It outlines the declarant's responsibilities during the control period, such as maintaining the association and providing annual financial reports, and establishes a clear process for transitioning control to an elected board.

Additionally, the bill repeals outdated legal language and replaces it with new provisions that enhance transparency and accountability within HOAs. It clarifies the rights of declarants regarding development and annexation, while ensuring that any restrictions on the elected board's authority will expire, thus empowering unit owners. The introduction of civil penalties for both declarants and associations for non-compliance further strengthens governance. Overall, these changes aim to protect the interests of unit owners and ensure that the operational authority of HOAs aligns with contemporary standards and practices.

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