The bill amends Chapter 34-36.1, known as "Condominium Law," to introduce new definitions and provisions aimed at improving governance and financial management within condominium associations. Key insertions include definitions for "annual budget," "capital expense," "common elements," "condominium fees," "deed-restricted unit," and "special assessment," which clarify the financial responsibilities of unit owners and the association.

The bill establishes limits on increases in monthly common expenses, stating that in associations where less than fifty percent (50%) of the units are deed-restricted units, increases may not exceed five percent (5%) of the previous year's monthly common expenses. It also limits special assessments for unforeseen costs not included in the approved annual budget for these associations, capping the assessment attributed to deed-restricted units at fifty percent (50%) of the full assessment and allowing owners of deed-restricted units the option to enter into a monthly payment plan.

Additionally, the bill mandates that any executive board formed after June 30, 2026, must include representation proportional to the number of deed-restricted and market-rate units, with fractional representation allocated to a market-rate owner. It requires all associations to register with the Department of Housing by December 31, 2026, and submit financial and operational documents within thirty (30) days of adoption or amendment.

The Department of Housing's powers are expanded to include the coordination of a central information depository regarding condominium associations and the investigation of complaints related to these associations. This legislation is set to take effect on July 1, 2026.

Statutes affected:
5825: 42-64.34-2