OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 61 Final Analysis
134th General Assembly
Click here for S.B. 61’s Fiscal Note
Primary Sponsors: Sens. Blessing and Antonio
Effective date: September 13, 2022
Effective Date:
Yosef Schiff, Attorney
SUMMARY
Condominiums and planned communities
 Authorizes the board of directors for a condominium unit owners association (UOA) and
planned community home owners association (HOA) to amend their declarations and
bylaws to remove unlawful discriminatory covenants without the majority vote of the
owners.
 Prohibits a majority of an UOA board of directors and HOA board of directors from
consisting of owners or representatives from the same unit (condominiums) or owners
or representatives from the same lot (planned communities) unless the board
specifically makes an exception before such a majority is in place.
 Requires UOA and HOA boards of directors to adopt budgets annually.
 Requires that the reserves included in a UOA budget be adequate to repair or replace
major capital items in the normal course of operations without special assessments,
unless an exception is applicable, and eliminates the requirement that the reserves be
at least 10% of the annual budget.
 Requires, for both condominiums and planned communities, that any waiver of the
reserve requirement be done annually in writing.
 Requires, generally, a UOA board or HOA board to maintain blanket fidelity, crime, or
dishonesty insurance coverage for any person who controls or disburses association
funds.
 Increases the amount of the fire and extended coverage insurance a UOA board must
maintain for all buildings and structures of the condominium property from at least 80%
of the property’s fair market value to at least 90% of the property’s replacement cost.
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 Expands the authority of UOA and HOA boards to take part in legal actions to include
land use proceedings and proceedings that involve two or more owners, impacts zoning,
or otherwise relates to matters affecting the property.
 Shifts, for condominium unit owners, the default for examining or copying certain
books, records, or minutes from permitting the condominium board to refuse
permission to requiring the permission of the UOA board.
 Requires an owner to obtain UOA or HOA board approval to examine or copy books,
records, or minutes that are more than five years old.
 Allows certain UOA or HOA notices to be sent by email.
 Makes the UOA lien for payment of specified expenses a continuing lien that allows
collection of amounts that accrue after the lien is filed.
 Permits a UOA board to charge and collect fees for social activities or charitable
contributions made on behalf of the UOA.
 Regulates the installation and use of solar energy collection devices on condominium
property and in planned communities.
New Community Authority Law
 Changes the date from December 31, 2021, to December 31, 2024, by which a new
community authority must be established for a developer with a 99-year renewable
lease of the land to qualify to carry out a new community development program under
the New Community Authority Law.
Recording fees
 Specifies that the fee the county recorder must collect for entering or indexing any
reference by separate recorded instrument includes any marginal reference or a
reference that was accomplished by a marginal reference but is now accomplished
through electronic means.
DETAILED ANALYSIS
Condominiums and planned communities
Overview and terminology
Condominium properties and planned communities contain many similarities in Ohio
Law. The act makes several changes to bring those laws into greater alignment and makes a
number of parallel changes to each. Condominium property is a form of real property
ownership under which each owner has an individual ownership interest in a unit with the right
to exclusive possession of that unit and an undivided ownership interest with the other unit
owners in the common elements of the condominium property. The unit owners association
(UOA) is the organization that administers the condominium property. It consists of all the
owners of units in the condominium property. A planned community is a community
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comprised of individual lots for which a deed, common plan, or declaration requires that
owners become members of a home owners association (HOA) that governs the community,
that owners or the HOA holds or leases property or facilities for the benefit of the owners, or
that owners support by membership or fees, property or facilities for all owners to use. The
home owners association (HOA) is comprised of owners of lots in a planned community and is
responsible for the administrative governance, maintenance, and upkeep of the planned
community. The declaration is the instrument that subjects the property to the Condominium
Law or Planned Community Law, as applicable. Both UOA and HOA authority is exercised by a
board of directors.1
Discriminatory covenants
Continuing Ohio and federal law prohibit housing discrimination based on race, color,
national origin, sex, religion, or familial status. As a result, provisions in deeds and other land
documents, such as planned community and condominium declarations, that aim to implement
such discrimination are unenforceable. If the documents were created prior to the enactment
of the federal and state law protections, sometimes the discriminatory provisions remain in the
documents, even though the discriminatory provisions are unenforceable.2
The act authorizes UOA and HOA boards of directors to remove such discriminatory
restrictive covenants from their declarations and bylaws without a vote of the HOA or UOA
owners. Under prior law, such an amendment required the vote of at least 75% of the HOA or
UOA owners. The act instead authorizes the UOA board to amend the declaration in any
manner necessary to delete as void, any provision within the declaration or bylaws, or in any
applicable restrictions or covenant, that prohibits or limits the conveyance, encumbrance,
rental, occupancy, or use of the property on the basis of race, color, national origin, sex,
religion, or familial status. Similarly, the act authorizes the HOA board to do the same but
requires the majority vote of the board.3
Composition of board of directors
The act limits who may be on UOA and HOA boards of directors. Under continuing law,
board members are elected by unit owners and lot owners from among the owners and their
spouses. The act prohibits a majority of board members from being elected from the same unit
or lot unless the board votes to allow such a majority before it is elected.4
1 R.C. 5311.01 and 5312.01, not in the act.
2 R.C. 4112.02(H) and 42 United States Code 3604, not in the act.
3 R.C. 5311.05(E)(1)(g) and 5312.05(C).
4 R.C. 5311.08(A)(1) and 5312.03(A)(1).
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Budgets
UOA budgets
Unless otherwise provided in the declaration or bylaws, under prior law, the
condominium board of directors was required to adopt and amend budgets for revenues,
expenditures, and reserves unless the declaration or bylaws provided otherwise. The act makes
this duty unconditional, removing prior law’s authority for the declaration or the bylaws to
provide otherwise. In addition, the act clarifies that the budget adopted is an estimated budget
and requires it to be adopted annually, making the requirement parallel to the Planned
Community Law’s budget requirements.
Under continuing law, the budget must generally include reserves in an amount
adequate to repair and replace major capital items in the normal course of operations without
the necessity of special assessments. Under prior law, the amount set aside annually for
reserves had to be at least 10% of the annual budget, but the reserve requirement could be
waived each year by majority vote of the unit owners.
The act eliminates the requirement that the reserves be at least 10% of the annual
budget. It also requires that waiver of the reserve requirement by a majority of the unit owners
be approved in writing and adds another exception to the reserve requirement. Under that
exception, a reserve is not required if the declaration or bylaws include language limiting the
board’s ability to increase assessments for common expenses without a vote of the unit
owners.5
HOA budgets
Under prior law, unless otherwise provided in the declaration or bylaws, the HOA board
of directors had to annually adopt and amend an estimated budget for revenues and
expenditures and collect assessments for common expenses from owners. The act makes these
duties mandatory with the board of directors, removing authority for the declaration or bylaws
to provide otherwise.
Continuing law requires the budget to include reserves in an amount adequate to repair
and replace major capital items in the normal course of operations without the necessity of
special assessments. The owners, exercising not less than a majority of the voting power of the
HOA, may annually waive this reserve requirement. The act requires the waiver to be in
writing.6
Insurance
Blanket fidelity, crime, or dishonesty insurance
The act requires the condominium board of directors, unless otherwise provided by the
declaration or bylaws, to maintain, as a common expense, blanket fidelity, crime, or dishonesty
5 R.C. 5311.081(A)(1).
6 R.C. 5312.06(A).
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insurance coverage for any person who controls or disburses association funds. Similarly, the
act requires that the HOA board of directors maintain, to the extent reasonably available and
applicable, the same coverage.
All of the following apply to this insurance:
 The coverage must be for the maximum amount of funds that will be in the custody of
the association or its designated agent at any one time, plus three months of operating
expenses.
 The insurance is to be the property of and for the sole benefit of the association, which
is the insured party.
 It must protect against any unauthorized taking or loss of association funds.
 It must include in its definition of “employee” the manager and the managing agent of
association funds.
 The insurance must include a provision requiring the insurer to provide a ten-day
written notice in the event of cancellation or substantial modification of the policy.7
Condominiums – fire and extended coverage insurance
The act increases the amount of the fire and extended coverage insurance the
condominium board must maintain for all buildings and structures of the condominium
property from not less than 80% of the property’s fair market value to at least 90% of the
property’s replacement cost.8
Legal actions
Unless otherwise provided in the declaration, continuing law allows a condominium
board to take part in a civil, criminal, or administrative action or proceeding that is in the name
of, or threatened against, the UOA, the board, or the condominium property. The Planned
Community Law has an analogous provision. The act expands the authority in both laws to
specifically include land use planning proceedings and proceedings that impact zoning.
Under prior law, the condominium board or HOA board also could take part in actions
that involved two or more owners and that related to matters affecting the property. The act
removes the requirement that both those requirements be met, and allows the board to take
part in an action that involves two or more unit owners (or owners) or that relates to matters
affecting the property.9
7 R.C. 5311.16(C) and 5312.06(B)(4).
8 R.C. 5311.16(B).
9 R.C. 5311.081(B)(2) and 5312.06(D).
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Examination or copying of records
UOA records – permission needed for certain records
Generally, any member of a UOA may examine and copy the books, records, and
minutes the UOA is required to keep. But, the condominium board may refuse to permit the
examination or copying of certain types of records. The act changes the default for examining
these records from permitting the condominium board to refuse to permit the examination or
copying to prohibiting the examination or copying unless the board gives its approval. This
change brings the Condominium Law in line with the continuing Planned Community Law.
The records subject to this restriction are the following:
1. Information that pertains to property-related personnel matters;
2. Certain records pertaining to litigation or other property-related matters;
3. Information that pertains to transactions currently under negotiation, or information
that is subject to confidentiality requirements in a contract;
4. Information that relates to enforcement of the association rules against other owners;
5. Information the disclosure of which is prohibited by law.10
UOA and HOA records – more than five years old
In addition, under the act, a unit owner needs condominium board approval, and an
owner needs HOA board approval, to examine or copy books, records, or minutes that date
back more than five years prior to the date of the request.11
Electronic notices
Notices to condominium unit owners
The act allows the condominium board of directors, without a vote of the unit owners,
to amend the declaration to permit notices to unit owners, that are required by the declaration
or bylaws, to be sent by email and, if returned undeliverable, by regular mail, provided the
condominium board has received the prior, written authorization from the owner.12
Notices to planned community owners regarding HOA meetings
The declaration and bylaws of a planned community must provide for the general
governance of the HOA, including the manner of giving notice of meetings. The act permits this
notice to be sent by email, provided the HOA has received prior, written authorization from the
owner.13
10 R.C. 5311.091 and 5312.07.
11 R.C. 5311.091 and 5312.07.
12 R.C. 5311.05(E)(1)(f).
13 R.C. 5312.02(B)(8).
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Notice relating to assessments for enforcement or damages
Unless otherwise provided in the declaration, continuing law permits the condominium
board to impose reasonable enforcement assessments for violations of the declaration, the
bylaws, and UOA rules, and reasonable charges for damage to the common elements or other
property. Prior to imposing such a charge, the board must give the unit owner a written notice
describing the damage or violation, the amount of the charge or assessment, and a statement
of the unit owner’s rights and the procedures involved.
Similarly, under continuing law, an HOA may asses an individual lot for specified
assessments and costs, including charges for damages and enforcement. Prior to imposing such
a charge or assessment, the HOA board must give the owner a similar written notice.
The act permits these types of notices to be by email to an email address previously
provided by the owner in writing.14
UOA lien for the payment of specified expenses
In a change that brings the Condominium Law in line with the Planned Community Law,
the act clarifies that the lien that the UOA has upon an owner’s interest in a unit and common
elements for the payment of specified expenses is a continuing lien. Consequently, amounts
that have accrued since the filing of the lien also may be collected.
Under continuing law, the e