Meetings at which the board will extablish the amount of the deductible for property insurance shall be noticed in the same manner as a budet meeting. The notice is no longer required to state the proposed deductible or the available funds and assessment authority relied upon by the board nor an estimate of any potential assessment amount against each unit.
Association Insurance (2)
The requirement that the association shall require
Unit owners to obatin and maintain liability and property insurance was deleted. As such, Condominium associations are not required to ask for evidence of unit owner policies and do no hav the authority to purchase paloicies on be half of owners and assess the cost against such owners. Finally, unit owner insurance policies are no longer required to name the association as an additional insured or loss payee.
Financial Reporting Requirements
The Division must adopt standards for presenting a summary of association
- reserves, including a good fatih estimate of disclosing the annual amount of reserve funds that would be neccessary for the association to fund reserves for each reserve item based on the straight-line accounting method.
- The disclosure in not applicable to reserves funded via the pooling method.
Financial Reporting Requirements
An Association that operates fewer than
75 units, regarless of the association's annual revenue, shall prepare a report of cash receipts and expenditures in lieu of financial statements.
This was changed from associations operating fewer than 50 units.
Election of Directors/Board of Directors
A person who is more than
90 days delinquent in any fee, fine, special or regular assessment is not eliglble for board membership.
Previously, this only included regular assessments.
Common expenses/Communication Services
If provided in the declaration, or pursuant to a contract entered into by the Board of Directors, the cost of communication services
is a common expense
The cost may be assessed on a per unti basis rather than a percentage basis if the declaration provides for other than an equal sharing of common expenses.
Assessments/Liability of First Mortgagee
The liability of a first mortgagee who acquires title to a unit by foreclosure or by deed in lieu of foreclosure for unpaid assessments due before acquiring title is the
lesser of 12 months past due assessments or 1% of the original mortgage debt.
Previously, the first mortgagee's liability wa the lesser of 6 months pas due assessments or 1% of the oriinal mortgage debt.
Assessments/Collection of Rent from Tenants
If a unit is occupied bya a tenant and the unit owner is delinquent, the association may make
written demand that the tenant pay future monetary obligations related to the unit to the association.
Fines/suspension of Use Rights
If a unit owner is delinquent for more than 90 days in paying a monetary obligation due to the association
the association may suspend the right of aunit owner or a unit's occupant, to use common elements, common facilities.
This subsction does not apply to limited common elements intended to be used only by that unit, common elements that must be used to access the unit, utility servces provided to the unit, parking spaces, or elevators.
Fines/Suspension of Use Rights
Tha association may levy reasonable fines against an owner for failure to comply with a provision of the Declaration, the associations Bylaws, or reasonable rules and regulations.
A fine may not be levied and a suspension for violations may not be imposed unless the association first provides at least 14 days written notcie and an opportunity for a hearing to the unti owner.
If reserves were not initially established by the devloper
funding of reserves is limited to the extent that the governing documents limit increase in assessements, including reserves.
Director/Officer/Committee Member Compensation
A director, officer or committee member may
not directly recieve any salary or compensation for the performance of duties as such and may not in any other way benefit financially from service to the association.
Prior to turnover, the board of directors controlled by the developer may not
levy a specail assessment unless a majority of the lot owners other than the develooper have approved the special assessment fy a majorty vote.