SB 1027 Enacts provisions relating to homeowners' associations
Sponsor: Cierpiot
LR Number: 6356S.01I Fiscal Notes
Committee: Judiciary and Civil and Criminal Jurisprudence
Last Action: 3/1/2018 - Second Read and Referred S Judiciary and Civil and Criminal Jurisprudence Committee Journal Page: S467
Title: Calendar Position:
Effective Date: August 28, 2018

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Current Bill Summary


SB 1027 - This act specifies that the bylaws of a homeowners' association may specify the qualifications, powers and duties, terms of office, and manner of election and removal of executive board members and filling vacancies, but requires that elections for executive board members be conducted by an independent third-party, to be nominated by the existing executive board and approved by a majority of votes present at a meeting and any absentee ballots cast as provided by the association's rules. The act also specifies that the results of the election shall be examined and determined only in a meeting held in accordance with the requirements of the act.

This act specifies that homeowners' associations shall hold a meeting of unit owners at least annually, at a time, date, and place specified in the association's bylaws. Associations shall also hold special meetings if approved by the executive board, or upon request by 20% of unit owners or a lower percentage if specified in the bylaws.

The act enacts notice requirements for association meetings, including both timing and required content for the notice. The act requires meetings to be open to unit owners except during an executive session. Executive sessions shall be held only for purposes specified in the act, and final votes and actions shall not be taken during an executive session. Gatherings of board members in which no association business is conducted are not executive board meetings, but executive board members are prohibited from using electronic or other means to evade the open meeting requirements of this act.

Unit owners shall be given reasonable opportunity at any meeting to comment on matters affecting the community or association, subject to reasonable time limitations. If any materials are distributed to the executive board before the meeting, copies shall also be made available to unit owners, except for unapproved minutes and materials to be considered in executive session.

The act provides that unless the declaration or bylaws state otherwise, the executive board may meet by telephone, video, or other conferencing process as long as it meets certain notice requirements and does not infringe on unit owners' right to participate in the process as otherwise required by the act.

This act requires associations to keep financial records in sufficient detail to track revenue and expenditures, and specifies that association records shall be made reasonably accessible by unit owners and their authorized agents.

Records shall be made available to unit owners and authorized agents for examination and copying during reasonable business hours within 5 business days of a written request. Records may be withheld for certain purposes specified in the act. Associations may charge a reasonable fee for providing copies and for the actual cost of personnel assisting in or supervising the inspection. The act specifies that the right to copy the records includes electronic transmission. Associations are not obligated to compile, format, or synthesize information, and information provided under this provision shall not be used for commercial purposes.

This act contains provisions similar to provisions in SB 398 (2017).

ERIC VANDER WEERD