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 areas," and "development rights." The legislation emphasizes consumer protections, including the requirement for a public offering statement and the right for purchasers to cancel agreements. It also clarifies the governance structure of associations, mandating that they operate as nonprofit corporations and adhere to corporate governance rules.

Significant changes include the establishment of voting procedures for community decisions, requiring a quorum for routine matters and a supermajority for significant changes. The bill outlines the process for exercising development rights, amending community documents, and managing common areas, while ensuring transparency and communication between the board and lot owners. Additionally, it introduces provisions for the enforcement of privileges related to unpaid dues and mandates that associations maintain comprehensive records accessible to lot owners. The bill is set to take effect on January 1, 2025, for new declarations, with existing communities subject to the new regulations starting January 1, 2026.

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)