HB 1406 Summary

• Requires sellers to provide purchasers with homeowners association disclosures at least 10 days before closing, including governing documents, assessment amounts, board member contact information, and capital improvement projections; allows a maximum $250 fee for providing unpaid assessment statements.

• Permits condominium declarations and homeowners association governing documents to be amended with consent of 75% of co-owners or members (with declarant consent required within 7 years of original recording), and requires 95% approval to convey common areas or dissolve the condominium.

• Establishes grievance resolution procedures for disputes between co-owners and condominium associations, and between members and homeowners associations, requiring notice, negotiation, and mediation or arbitration before legal proceedings can begin.

• Requires board meetings to have written notice 48 hours in advance, be open to members (except executive sessions), and maintain written records of attendance, matters discussed, and individual votes without secret balloting.

• Creates homeowners association study committee with 4 House and 4 Senate members (no more than 2 from same party) to study homeowners associations and dispute resolution methods; committee expires January 1, 2017.