HB 2656 Summary

• Shortens declarant control period in condominiums from 4 years to 2 years after declarants cease offering units for sale, or 60 days after bill's effective date if criteria already met.

• Requires declarants to terminate control by recording an instrument with the county recorder and notifying unit owners; failure to do so subjects declarants to civil penalties up to $500 per day.

• Imposes duties on declarants during control period including reasonable care in managing associations, establishing sound fiscal practices, maintaining financial records, and providing annual subsidy reports to unit owners.

• Protects declarant development and annexation rights after control terminates; declarants may amend declaration/plat without member approval and associations cannot restrict remaining development activities.

• Establishes that contracts with declarants or affiliates entered before transition must include termination provisions allowing associations to cancel without penalty with 30 days notice after elected board takes office.