Substitute House Bill No. 7027, also known as Public Act No. 25-146, introduces several amendments to existing laws regarding condominium deposits, rental charges, and the establishment of a working group to define "affordable housing." Key changes include the definition of "actual costs" related to condominium construction, which now encompasses various expenses such as demolition, permit fees, and design costs, while explicitly excluding sale and marketing costs. The bill allows for the use of earnest money deposits for construction improvements, provided certain conditions are met, including the purchaser being an accredited investor. Additionally, it mandates that any purchase agreement allowing such use must include a specific disclosure regarding the potential application of funds.

The bill also modifies rental payment procedures by requiring landlords to provide receipts for cash payments and to furnish occupants with a detailed ledger upon request, showing all charges and payments. Furthermore, it establishes a working group tasked with developing a uniform statutory definition of "affordable housing," which will include various stakeholders and is expected to report its findings by January 1, 2026. Other minor amendments include changes to the title of the Commissioner of Health Strategy. Overall, the act aims to enhance transparency in condominium transactions and rental agreements while addressing the need for a consistent definition of affordable housing.

Statutes affected:
Raised Bill: 47-271
HSG Joint Favorable: 47-271
File No. 239: 47-271
Public Act No. 25-146: 47-271