The proposed bill establishes CHAPTER 36.2, the "Rhode Island Homeowners' Association Law," which aims to enhance the governance of homeowners associations (HOAs) in Rhode Island by promoting transparency, fairness, and accountability. It sets minimum standards for governance, including procedures for meetings, financial management, elections, and dispute resolution, with a strong emphasis on alternative dispute resolution methods to reduce conflicts. Key provisions require open board meetings, member participation, and specific conditions for amending governing documents, while also outlining the fiduciary responsibilities of board members and protocols for handling complaints and maintaining official records.

The bill mandates that associations maintain official records for at least seven years and prepare annual budgets that include reserves for capital expenditures and deferred maintenance. It establishes procedures for the recall of directors, prohibits compensation for board members, and outlines guidelines for member meetings. A significant feature is the introduction of a pre-suit mediation process for disputes, requiring mediation before legal action can be taken, with costs shared equally by the parties involved. The act includes compliance enforcement provisions, which will be enforced one year after passage, and a severability clause, ensuring that the law remains effective even if parts are invalidated. The act is set to take effect upon passage.