HB 1501 Summary

• Establishes an ombudsman's office for condominium associations within the Department of Commerce and Consumer Affairs to investigate complaints, resolve disputes, and provide education to unit owners and board members

• Creates an ombudsman's office special fund funded by administrative penalties, fines, and 100% of condominium education trust fund fees to cover operational costs without impacting the state general fund

• Requires all condominium association board members to complete educational classes through the ombudsman's office within three months of joining the board and every three years thereafter

• Replaces mandatory mediation and arbitration processes (sections 514B-161 and 514B-162) with dispute intervention requests to the ombudsman's office, allowing the ombudsman to investigate and issue binding decisions

• Increases the condominium education trust fund fee from $1.50 to $12.50 per unit annually (total of $25 per unit) and appropriates funds from the trust fund to establish and operate the ombudsman's office beginning January 1, 2024