The bill amends Louisiana law regarding common interest ownership properties, specifically the Planned Community Act, by introducing new definitions and regulations for the creation, alteration, and termination of planned communities. It replaces the term "Homeowners Association" with "Planned Community" and provides detailed definitions for terms such as "assessment," "common area," and "development right." The legislation emphasizes consumer protections, including the requirement for a public offering statement and the right for purchasers to cancel agreements. It also establishes governance structures for associations, requiring adherence to corporate governance rules, quorum votes for administrative matters, and supermajority votes for significant changes.

Additionally, the bill outlines the rights and responsibilities of lot owners and associations, including the establishment of class voting, the transfer of ownership interests, and the procedures for exercising development rights. It mandates that associations maintain comprehensive records, submit annual budgets, and ensure transparency in financial dealings. The bill also clarifies the enforcement of privileges related to unpaid dues and establishes a structured order for applying payments. Importantly, it specifies that existing planned communities are not required to amend their documents to comply with the new provisions, while the law will take effect on January 1, 2025, for new communities and January 1, 2026, for those established before this date.

Statutes affected:
SB23 Original: 9:7(B)(3), 9:3132(1)
SB23 Engrossed: 9:7(B)(3), 9:3132(1)
SB23 Enrolled: 9:7(B)(3), 9:3132(1)
SB23 Act : 9:7(B)(3), 9:3132(1)