The bill amends the General Laws in Chapter 34-36.1 entitled "Condominium Law" to update the applicability of the chapter and the rights of secured lenders. Specifically, it clarifies that the chapter applies to all condominiums created within the state after July 1, 1982, and that condominiums created before this date may choose to be governed by the provisions of this chapter through a written agreement by the condominium association and all unit owners. The agreement must be recorded in the land evidence records. The bill also specifies that certain sections of the chapter apply to events and circumstances occurring after July 1, 1982, for condominiums created before that date, and outlines the applicability of the chapter to condominiums created as additional phases and to those created before June 19, 1991, with respect to foreclosure of condominium liens.
Additionally, the bill introduces new legal language regarding the rights of secured lenders, particularly in section 34-36.1-2.19. It allows the declaration to require approval from a specified number or percentage of mortgagees for certain actions of the unit owners or the association to be effective. However, it restricts such requirements from denying control over the association's general administrative affairs or from preventing the association from engaging in litigation, proceedings, or insurance matters. A new process is established for requesting approval from unit mortgagees, where a failure to deny approval in writing within 65 days of the request being mailed is deemed as approval. The bill would take effect upon passage.