The bill amends Louisiana law regarding common interest ownership properties, specifically the Planned Community Act, by introducing new definitions and regulations for the governance of planned communities. It replaces the term "Homeowners Association" with "Planned Community" and clarifies various terms such as "association," "common area," and "lot." The legislation emphasizes the importance of electronic communication in governance and establishes that associations must adhere to corporate governance rules. Key provisions include the requirement for a quorum vote for routine administrative matters and a supermajority vote for significant decisions, such as altering property boundaries. The bill applies to both existing and future planned communities but does not mandate changes to existing community documents unless desired.

Additionally, the bill outlines the governance structure of associations, mandating that they operate as nonprofit corporations and detailing the powers and responsibilities of the board of directors. It requires transparency in meetings, voting procedures, and financial management, including the submission of annual budgets for ratification by lot owners. The legislation also enhances consumer protections by requiring detailed public offering statements and establishing rights for purchasers, such as the ability to cancel contracts if the statements are not provided. Overall, the bill aims to improve the operational framework of planned communities while safeguarding the rights of both lot owners and associations.

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)