The bill amends the "Condominium Law" to introduce new requirements for condominium associations regarding the maintenance and funding of common elements. Specifically, it mandates that associations with common elements requiring maintenance, repair, or replacement costs of at least $20,000 must conduct a reserve study. This study must itemize the common elements, estimate the timeline and costs for future maintenance, and be reviewed by a licensed engineer or architect.

Additionally, the bill stipulates that funds for these reserves must be deposited into a dedicated reserve financial account at a financial institution with a physical branch located in the county where the condominium is located. The reserve funds can only be used for the purposes identified in the reserve study.

Furthermore, during the period of declarant control, the executive board must include full funding of the reserve study expenses in the annual budget. For associations not under declarant control, this full funding must be adopted by January 1, 2027. Any provisions in the declaration or bylaws that limit the increase in annual assessments relative to the previous year are rendered void. The act is set to take effect upon passage, ensuring that condominium associations are better equipped to manage the financial responsibilities associated with maintaining their properties.

Statutes affected:
7609: 34-36.1-1.02