HB 2442 Summary

• Redefines "assessment" in condominiums and planned communities as charges to fund anticipated common expenses based on approved annual or supplemental budgets, rather than periodic shares of actual expenses.

• Requires boards to develop annual operating budgets based on reasonably prudent estimates of necessary common expenses and make proposed budgets available to owners at least 48 hours before approval.

• Mandates budget ratification by unit owners or members if assessment increases exceed the consumer price index percentage change, with a 72-hour advance notice meeting required to explain the budget.

• Restricts reserve account spending to authorized purposes only and prohibits reducing reserve allocations to cover unbudgeted expenses without prior member approval; requires special assessment or financing approval by majority vote before implementation.

• Limits assessment increases to 10 percent above the prior year without member approval and prohibits association litigation against third parties without prior majority member vote, except for document enforcement or collection purposes.