The bill amends several sections of the General Laws in Chapter 34-36.1, known as "Condominium Law," to enhance governance and transparency within condominium associations. Key insertions include definitions for "annual budget," "capital expense," "special assessment," and "non-discretionary expenses," which clarify financial responsibilities and expectations for unit owners. The bill mandates that associations allow owners of deed-restricted units or those declaring financial hardship to enter into monthly payment plans for special assessments, with payments not exceeding one-twelfth of the assessment.

Additionally, the bill requires condominium boards to present substitute budgets when proposing annual budgets that exceed a 50% increase from the previous year's condominium fees, promoting transparency and communication with unit owners. It establishes a requirement for executive boards formed after June 30, 2027, to include members in proportion to the number of deed-restricted and market-rate units, ensuring fair representation.

The bill also mandates that all associations register with the executive office of housing and submit essential documents, such as annual budgets, board lists, financial records, and governing documents, to enhance operational transparency. Furthermore, it aims to limit increases in monthly common expenses and special assessments in associations where deed-restricted units are in the minority. The act provides a framework for the executive office of housing to investigate complaints related to condominium associations and to offer mediation services in disputes prior to legal action. The act is set to take effect on July 1, 2026.

Statutes affected:
7853: 42-167-3