HI HB117

Amends Section 514B-106 to establish that violations of minimum replacement reserves fund balance requirements may constitute a breach of fiduciary duty owed by condominium boards and their officers or members.

Modifies Section 514B-148(b) to require condominium associations to maintain a minimum balance for replacement reserves funds based on the tax-assessed value of the project, unless the association's annual assessments are sufficient to add a specified percentage to the fund.

Provides that new condominium associations are not required to collect replacement reserves assessments until the fiscal year following their first annual meeting.

Allows board members to avoid liability for violations by written notice of disagreement or by rescinding or withdrawing the violating conduct within 45 days of the initial violation.

Effective date: September 1, 2025.