Bills · 2011-2012 Regular Session
length of declarant control; period for expanding condominiums; community manager requirements; requiring a written agreement between the declarant and the municipality, declarant warranties, and posting securities; requiring approval by the municipality of condominium instruments; and requiring certification of condominium financial statements.
- Introduced, stopped here
- Passes Senate, not reached
- Passes Assembly, not reached
- Governor signs, not reached
- Law, not reached
Unfamiliar terms? Glossary
What this bill does
Plain-language analysis by the nonpartisan Legislative Reference Bureau
Current law contains provisions that regulate the establishment and operation
of condominiums. A condominium is a form of property that includes separate units
that are owned and occupied by separate owners and common elements that,
generally, may be used by all unit owners and in which each unit owner has a
specified ownership interest. A condominium is governed by an association of the
unit owners with a board of directors elected by the unit owners. This bill makes a
number of changes to the condominium laws, including the following:
1. Under current law, a county may adopt an ordinance that requires review
by the county, or by a city, village, or town in the county, of condominium instruments
before they are recorded. The bill eliminates the ordinance requirement and
provides that condominium instruments may not be recorded unless they are
reviewed and approved by each city, village, or town (municipality) in which the
condominium is to be located.
2. The bill adds requirements for condominium declarants (the person who
establishes the condominium). A declarant must enter into an agreement with each
municipality in which the condominium is to be located that specifies the rights and
responsibilities of the declarant and the municipality. The agreement must address
zoning approvals, permit issuance, the completion schedule, and remedies in the
event of default. The agreement must include fair market value guarantees, utility
and water and sewer specifications, and a development plan with such details as
buildings and other structures, roadways, open space, and parking facilities. The
agreement must authorize the municipality to inspect the condominium
development during construction and must authorize the condominium association
to enforce the agreement. The bill also explicitly gives an association standing to
enforce the agreement between the declarant and the municipality.
3. In addition to the agreement requirement, a declarant must provide a
three-year warranty to each unit owner against defects in materials and
workmanship in the unit, and a three-year warranty to the association against
defects in materials and workmanship in the condominium outside of the units.
Before conveying the first unit to a purchaser, the declarant must post a bond or
letter of credit with each municipality with which the declarant has entered into an
agreement. The amount of bond or letter of credit must equal 10 percent of the
estimated construction or conversion costs and be in favor of the municipality for the
benefit of the association and any unit owner damaged by a defect in materials or
workmanship.
4. Under current law, a condominium declaration may authorize the
association to hire a manager to handle the day-to-day affairs of the condominium.
The bill provides that any person hired by an association as a manager must be
certified by the Certified Manager of Community Associations certification program
and must post a bond in an amount specified by the association board.