SENATE AMENDED
PRIOR PRINTER'S NOS. 2035, 2190, 3242,
3513 PRINTER'S NO. 3585
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1795
Session of
2021
INTRODUCED BY R. BROWN, RADER, HELM, M. MACKENZIE, CIRESI,
GAYDOS AND T. DAVIS, AUGUST 17, 2021
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, OCTOBER 24, 2022
AN ACT
1 Amending Title 68 (Real and Personal Property) of the
2 Pennsylvania Consolidated Statutes, in general provisions
3 relating to condominiums, further providing for definitions;
4 in management of the condominium, further providing for
5 executive board members and officers, for bylaws and, for <--
6 meetings, FOR QUORUMS AND FOR VOTING AND PROXIES; in general <--
7 provisions relating to cooperatives, further providing for
8 definitions; in creation, alteration and termination of
9 cooperatives, further providing for master associations; in
10 management of cooperatives, further providing for bylaws and, <--
11 for meetings, FOR QUORUMS AND FOR VOTING AND PROXIES; in <--
12 general provisions relating to planned communities, further
13 providing for definitions; in creation, alteration and
14 termination of planned communities, further providing for
15 master associations; and, in management of planned community,
16 further providing for bylaws and, for meetings, FOR QUORUMS <--
17 AND FOR VOTING AND PROXIES.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Section 3103 of Title 68 of the Pennsylvania
21 Consolidated Statutes is amended by adding definitions to read:
22 § 3103. Definitions.
23 The following words and phrases when used in this subpart and
24 in the declaration and bylaws shall have the meanings given to
1 them in this section unless specifically provided otherwise or
2 unless the context clearly indicates otherwise:
3 * * *
4 "IMMEDIATE FAMILY." A PARENT, SPOUSE, CHILD, BROTHER OR <--
5 SISTER.
6 "Independent reviewer." A person who is selected by the
7 declarant or a majority of the unit owners EXECUTIVE BOARD of a <--
8 condominium and satisfies all of the following:
9 (1) Holds a certificate issued by the Commonwealth as a
10 certified public accountant, is licensed to practice law in
11 this Commonwealth AND SPECIALIZES IN CONDOMINIUMS OR REAL <--
12 ESTATE LAW or is a vote management system.
13 (2) Is not a unit owner, directly or indirectly.
14 (3) Has no immediate family relationship with the
15 declarant, a unit owner or a THE condominium manager. <--
16 (4) Has no financial interest shared with the declarant,
17 a unit owner or a THE condominium manager. <--
18 (5) If compensated by the declarant, a director, the
19 association or a THE condominium manager, has disclosed the <--
20 terms of the compensation to all unit owners at a scheduled
21 meeting.
22 * * *
23 "Vote management system." A third-party vendor who operates
24 a digital or subscription service that securely manages the
25 conduct of elections and voting procedures.
26 * * *
27 Section 2. Section 3303(d) and (e) of Title 68 are amended
28 and the section is amended by adding a subsection to read:
29 § 3303. Executive board members and officers.
30 * * *
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1 (d) Election of members during transfer of declarant
2 control.--
3 (1) Not later than 60 days after conveyance of 25% of
4 the units to unit owners other than a declarant, not less
5 than 25% of the members of the executive board shall be
6 elected by unit owners other than the declarant.
7 (2) Not later than 60 days after conveyance of 50% of
8 the units to unit owners other than a declarant, not less
9 than 33 1/3% of the members of the executive board shall be
10 elected by unit owners other than the declarant.
11 (3) A vote by a unit owner must be submitted by the unit <--
12 owner to an independent reviewer who shall tally the results
13 of the election and certify the results to the declarant, the
14 executive board and unit owners. In order to be eligible to
15 vote in the election, a unit owner shall be in good standing
16 with the association. If a third-party vendor conducts the
17 election, the executive board may SHALL present the official <--
18 election results based on the certified election report from
19 the independent reviewer at a meeting of the unit owners and
20 shall enter the results in the meeting records. The executive
21 board shall ensure that all mailings relating to the election
22 use the return address of the third-party vendor that
23 conducts the election. All votes by unit owners under this
24 paragraph shall be submitted to the independent reviewer in
25 either an electronic or a paper format. If votes are
26 submitted in an electronic format, the association shall
27 provide reasonable accommodations to a unit owner who does
28 not have access to electronic means to submit the unit
29 owner's vote. This paragraph shall only apply to a
30 condominium with at least 100 500 units. If a condominium has <--
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1 more than 100 units and less than 500 units, the association <--
2 may opt out of IN TO the requirements under this paragraph by <--
3 a majority vote of unit owners. A VOTE OF AT LEAST 51% OF THE <--
4 VOTES COLLECTED FROM THE UNIT OWNERS IN PERSON,
5 ELECTRONICALLY OR BY ABSENTEE BALLOT WHICH ARE IN FAVOR OF
6 THE REQUIREMENTS UNDER THIS PARAGRAPH.
7 (e) Election of members and officers following declarant
8 control.--
9 (1) Not later than the termination of any period of
10 declarant control, the unit owners shall elect an executive
11 board of at least three members at least a majority of whom
12 must be unit owners, except that the executive board may
13 consist of two members, both of whom must be unit owners, if
14 the condominium consists of two units. The executive board
15 shall elect the officers. The persons elected shall take
16 office upon election.
17 (2) In the event that the election of the executive
18 board by the unit owners fails to take place not later than
19 the termination of a period of declarant control as provided
20 in this section, then a special meeting of the unit owners
21 may be called for such purpose by any member of the executive
22 board elected by the unit owners or, if there is no such
23 member of the executive board, the unit owners entitled to
24 cast at least 10% of the votes in the association.
25 (3) A vote by a unit owner must be submitted by the unit
26 owner to an independent reviewer who shall tally the results
27 of the election and certify the results to the executive
28 board and unit owners. In order to be eligible to vote in the
29 election, a unit owner shall be in good standing with the
30 association. If a third-party vendor conducts the election, <--
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1 the THE executive board may SHALL present the official <--
2 election results based on the certified election report from
3 the independent reviewer at a meeting of the unit owners and
4 shall enter the results in the meeting records. The executive <--
5 board shall ensure that all mailings relating to the election
6 use the return address of the third-party vendor that
7 conducts the election. All votes by unit owners under this
8 paragraph shall be submitted to the independent reviewer in
9 either an electronic or a paper format. If votes are <--
10 submitted in an electronic format, the association shall
11 provide reasonable accommodations to a unit owner who does
12 not have access to electronic means to submit the unit
13 owner's vote. ACCORDANCE WITH THE APPROVED METHODS OF VOTING <--
14 AS PROVIDED IN THIS SUBPART. This paragraph shall only apply
15 to a condominium with at least 100 500 units. If a <--
16 condominium has more than 100 units and less than 500 units, <--
17 the association may opt out of IN TO the requirements under <--
18 this paragraph by amending the association's bylaws by a <--
19 majority vote of unit owners. A VOTE OF AT LEAST 51% OF THE <--
20 VOTES COLLECTED FROM THE UNIT OWNERS IN PERSON,
21 ELECTRONICALLY OR BY ABSENTEE BALLOT WHICH ARE IN FAVOR OF
22 THE REQUIREMENTS UNDER THIS PARAGRAPH.
23 * * *
24 (g) Removal of member of executive board.--Notwithstanding
25 any provision of the declaration or bylaws to the contrary, the
26 unit owners, by a two-thirds vote of all persons present and
27 entitled to vote at any meeting of the unit owners at which a
28 quorum is present, may remove any member of the executive board
29 with or without cause, other than a member appointed by the
30 declarant, provided notice of the intention to remove a member
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1 of the executive board is given with the notice of the meeting
2 at which such removal is considered, AS PROVIDED UNDER SECTION <--
3 4303(G) (RELATING TO EXECUTIVE BOARD MEMBERS AND OFFICERS).
4 Section 3. Sections 3306(a)(3) and (6) and 3308, 3308 AND <--
5 3309(A) of Title 68 are amended to read:
6 § 3306. Bylaws.
7 (a) Mandatory provisions.--The bylaws of the association
8 must provide for:
9 * * *
10 (3) The qualifications, powers and duties, terms of
11 office and manner of electing executive board members and
12 officers and removing executive board members and officers
13 under section 3303(g) (relating to executive board members
14 and officers) and filling vacancies.
15 * * *
16 (6) The method of amending the bylaws. The following
17 apply:
18 (i) The bylaws may be amended only by vote, vote by <--
19 proxy or agreement of unit owners of units to which at
20 least:
21 (A) fifty-one percent of the votes are collected <--
22 from unit owners in person, electronically or by
23 absentee ballot WHICH ARE IN FAVOR OF THE AMENDMENT <--
24 IN THE ASSOCIATION ARE ALLOCATED; <--
25 (B) any larger majority as specified in the
26 bylaws; or
27 (C) a smaller number MAJORITY as specified in <--
28 the bylaws if all of the units are restricted
29 exclusively to nonresidential use.
30 (ii) The vote may be taken only at a scheduled
20210HB1795PN3585 - 6 -
1 meeting AND FOLLOWING NOTICE TO THE UNIT OWNERS as <--
2 provided under section 3308 (relating to meetings) that
3 was advertised seven 14 days in advance to the unit <--
4 owners. Absentee voting shall be permitted to unit owners
5 provided that the ballots must be submitted to an
6 independent reviewer within five days after BY THE <--
7 COMMENCEMENT OF the scheduled meeting.
8 * * *
9 § 3308. Meetings.
10 (a) In-person association meetings TIMING AND NOTICE.--The <--
11 bylaws must require that in-person meetings of the association <--
12 be held at least once each year and provide for special
13 meetings. The bylaws must specify which of the association's
14 officers, not less than ten nor more than 60 days in advance of
15 any meeting, shall cause notice to be hand delivered or sent
16 prepaid by United States mail to the mailing address of each
17 unit or to any other mailing address designated in writing by
18 the unit owner. THE NOTICE OF A MEETING MAY BE DELIVERED BY <--
19 ELECTRONIC MEANS IF THE UNIT OWNER HAS AGREED IN WRITING TO
20 ACCEPT THE NOTICE BY ELECTRONIC MEANS OR WHERE THE BYLAWS PERMIT
21 ELECTRONIC NOTICES. The notice of [any] an in-person meeting <--
22 must state the time and place of the meeting and the items on
23 the agenda, including the general nature of any proposed
24 amendment to the declaration or bylaws, any budget or assessment
25 changes and, where the declaration or bylaws require approval of
26 unit owners, any proposal to remove an executive board member or
27 officer.
28 (a.1) Virtual association meetings.-- <--
29 (1) The bylaws must require that notice of virtual
30 meetings of the association be given by:
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1 (i) First class or express mail, postage prepaid, or
2 courier service, charges prepaid, to the mailing address
3 of each unit or to any other mailing address designated
4 in writing by the unit owner. Notice under this
5 subparagraph shall be deemed to have been given to a unit
6 owner when deposited in the United States mail or with a
7 courier service for delivery to the unit owner.
8 (ii) Facsimile transmission, e-mail or other
9 electronic communication to the unit owner's facsimile
10 number or address for e-mail or other electronic
11 communications supplied by the unit owner for the purpose
12 of notice. Notice under this subparagraph shall be deemed
13 to have been given to the unit owner when sent.
14 (2) (Reserved).
15 (B) DELIVERY OF NOTICE.--THE BYLAWS MUST REQUIRE THAT NOTICE <--
16 OF VIRTUAL MEETINGS OF THE ASSOCIATION BE GIVEN BY:
17 (1) FIRST CLASS OR EXPRESS MAIL, POSTAGE PREPAID, OR
18 COURIER SERVICE, CHARGES PREPAID, TO THE MAILING ADDRESS OF
19 EACH UNIT OR TO ANY OTHER MAILING ADDRESS DESIGNATED IN
20 WRITING BY THE UNIT OWNER. NOTICE UNDER THIS PARAGRAPH SHALL
21 BE DEEMED TO HAVE BEEN GIVEN TO A UNIT OWNER WHEN DEPOSITED
22 IN THE UNITED STATES MAIL OR WITH A COURIER SERVICE FOR
23 DELIVERY TO THE UNIT OWNER.
24 (2) FACSIMILE TRANSMISSION, E-MAIL OR OTHER ELECTRONIC
25 COMMUNICATION TO THE UNIT OWNER'S FACSIMILE NUMBER OR ADDRESS
26 FOR E-MAIL OR OTHER ELECTRONIC COMMUNICATIONS SUPPLIED BY THE
27 UNIT OWNER, PROVIDED THAT THE UNIT OWNER HAS AGREED IN
28 WRITING TO ACCEPT THE NOTICE BY ELECTRONIC MEANS OR WHERE THE
29 BYLAWS EXPRESSLY PERMIT MEANS OF DELIVERING ELECTRONIC
30 NOTICE. NOTICE UNDER THIS PARAGRAPH SHALL BE DEEMED TO HAVE
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1 BEEN GIVEN TO THE UNIT OWNER WHEN SENT.
2 (b) (C) Use of remote technology.--Except as otherwise <--
3 provided in the bylaws, an individual may participate in a
4 meeting of the executive board or association by means of a
5 conference telephone or other remote electronic technology,
6 including the Internet, which allows participants in the meeting
7 to hear each other. Participation in a meeting as authorized
8 under this subsection shall be deemed in-person attendance at
9 the meeting.
10 (c) Election sessions.--The bylaws must require that a <--
11 special session of the association be held not later than seven
12 days before the election of an executive board member or officer
13 of the association to allow the unit owners to meet each
14 candidate for an executive board position or officer position. A
15 special session under this subsection may be held virtually or
16 in person. Each candidate for an executive board position or
17 officer position with the association shall have equal time to
18 address the unit owners during a special session under this
19 subsection.
20 (d) Recorded meeting.--If a meeting of the association will
21 be recorded via audio or video, an announcement shall be made at
22 the commencement of the meeting that the meeting will be
23 recorded. A recorded meeting under this subsection shall be
24 available to unit owners for a period of six months after the
25 date of the meeting.
26 (D) PRE-ELECTION SESSIONS.--THE BYLAWS MUST REQUIRE THAT, IN <--
27 THE EVENT THAT THERE ARE MORE CANDIDATES THAN OPEN POSITIONS ON
28 THE EXECUTIVE BOARD, THEN, UPON REQUEST OF ONE OR MORE OF THE
29 CANDIDATES, THE ASSOCIATION SHALL HOLD A SPECIAL SESSION AT
30 LEAST SEVEN DAYS BEFORE THE ELECTION OF AN EXECUTIVE BOARD
20210HB1795PN3585 - 9 -
1 MEMBER TO ALLOW THE UNIT OWNERS TO MEET EACH CANDIDATE FOR AN
2 EXECUTIVE BOARD POSITION. EACH CANDIDATE FOR AN EXECUTIVE BOARD
3 POSITION SHALL HAVE EQUAL TIME TO ADDRESS THE UNIT OWNERS DURING
4 A SPECIAL SESSION UNDER THIS SUBSECTION.
5 (E) RECORDED MEETING.--UNLESS THE BYLAWS PROVIDE OTHERWISE,
6 MEETINGS OF THE ASSOCIATION MAY BE RECORDED BY THE EXECUTIVE
7 BOARD VIA AUDIO OR VIDEO TECHNOLOGY, PROVIDED THAT AN
8 ANNOUNCEMENT IS MADE BY THE PRESIDING OFFICER AT THE
9 COMMENCEMENT OF THE