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 facing financial hardship to enter into monthly payment plans for special assessments, with payments not exceeding one-twelfth of the special assessment.

Additionally, it introduces requirements for boards proposing annual budgets that result in fee increases greater than 50%, necessitating a substitute budget that excludes discretionary expenditures. The substitute budget must be proposed at the budget meeting before the adoption of the annual budget, and unit owners may adopt it if approved by a majority of voting interests.

The bill establishes that any executive board formed after June 30, 2027, must include members proportionate to the number of deed-restricted and market-rate units, ensuring fair representation. It also requires all associations to register with the executive office of housing and submit essential documents, such as annual budgets and financial records, within specified timeframes to promote transparency.

Furthermore, the act aims to limit increases in monthly common expenses and restrict special assessments to unforeseen costs not included in the approved annual budget for associations where the minority of the units are deed-restricted units. The act is set to take effect on July 1, 2026, providing time for compliance with the new regulations.

Statutes affected:
2900: 42-167-3