SB 561

This bill 1) makes various changes to a condominium association's obligation

to maintain records and allow a unit owner to inspect and copy those records; 2) gives

condominium unit owners a right to request an audit of the association's financial

records; 3) provides that a unit owner may inspect and copy records of an entity

controlled by the association to the same extent that the association may inspect and

copy those records; and 4) provides that, after the effective date of the bill, an

association may not organize or reorganize as a for-profit corporation.

Maintenance and inspection of association records

The bill provides that a condominium association must maintain all of the

following records (association records):

1. Minutes of meetings of the association and of the board of directors of the

association.

2. Records of actions taken without a meeting by the condominium unit owners

on behalf of the association or by the board of directors of the association.

3. Certain disclosure documents that the association is required under current

law to furnish to a seller of a condominium unit for the seller to provide to a

prospective purchaser of the unit.

4. Detailed, accurate records of the receipts and expenditures affecting the

common elements of the condominium.

5. Annual budgets prepared by the association.

6. Financial statements.

7. Bank statements and account statements, including statements for reserve

accounts.

8. Income and expense statements.

9. Insurance policies.

10. The most recent audit of the association's financial records, if any.

11. Contracts entered into by the association and any bids for those contracts.

12. Invoices and expense records.

The bill also provides that a unit owner may, with certain exceptions, inspect

and copy any association records created within the past six years. The association

may impose a reasonable charge for copies of any association records, including the

costs of labor and materials used to provide the copies, but may not charge an amount

that exceeds the estimated cost of production or reproduction of the copies or $50,

whichever is less.

Under the bill, an association for a condominium with 100 or more units (large

association) must maintain an Internet site on which the large association posts

current copies of association records that are subject to inspection and copying by

unit owners. The Internet site must include a protected electronic location that is

inaccessible to the general public and accessible only to unit owners and employees

of the large association. The bill provides that, upon a unit owner's written request,