ND SB2394

Creates a new chapter in North Dakota Century Code establishing governance requirements for homeowner and property owner associations, including mandatory bylaws covering board structure, member meetings, written inquiry processes, annual budgets, and reserve funds

Requires association boards to consist of at least three members, meet quarterly, and adopt annual budgets at least 14 days before the fiscal year begins that include estimated revenues, classified expenses, and reserve accounts

Mandates formal reserve funds for capital expenditures and deferred maintenance, calculated based on estimated useful life and replacement costs, covering items like roof replacement, building maintenance, and pavement resurfacing exceeding $10,000

Requires two board member signatures for any expenditure over $10,000 and mandates associations consult legal counsel at least once every seven years to review compliance

Obligates both associations and individual members to maintain adequate insurance covering replacement costs, with association insurance updated annually for inflation