HB 5980 Summary

• Amends the Condominium Act to require bylaws provide for designation of persons to administer condominium projects and maintain detailed financial records specifying operating expenses.

• Requires bylaws include an indemnification clause for the board of directors with 10 days' notice to co-owners before payment, excluding coverage for willful and wanton misconduct or gross negligence.

• Mandates bylaws require mediation of disputes, claims, and grievances between co-owners or with the association, unless parties elect arbitration with written consent.

• Permits parties to petition courts after mediation if they do not agree to arbitration, and prohibits court petitions only when parties have elected binding arbitration.

• Applies mediation and arbitration requirements only to condominium projects established on or after May 9, 2002, with the act taking effect 90 days after enactment.