Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1453 3
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By: Representative S. Meeks 5
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For An Act To Be Entitled 8
AN ACT TO AMEND THE HORIZONTAL PROPERTY ACT; TO 9
REGULATE PROPERTY OWNERS' ASSOCIATIONS; AND FOR OTHER 10
PURPOSES. 11
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Subtitle 14
TO AMEND THE HORIZONTAL PROPERTY ACT; 15
AND TO REGULATE PROPERTY OWNERS' 16
ASSOCIATIONS. 17
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
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SECTION 1. Arkansas Code § 18-13-102(2), concerning the definition of 21
"co-owner" under the Horizontal Property Act, is amended to read as follows: 22
(2) "Co-owner" means a person, firm, corporation, partnership, 23
association, trust, or other legal entity, or any combination thereof, who 24
owns an apartment within the building or is a member of a property owners' 25
association; 26
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SECTION 2. Arkansas Code § 18 -13-102(8), concerning the definition of 28
"person" under the Horizontal Property Act, is amended to read as follows: 29
(8) "Person" means an individual, firm, corporation, 30
partnership, association, trust, member of a property owners' association, or 31
other legal entity, or any combination thereof; 32
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SECTION 3. Arkansas Code § 18 -13-102, concerning the definitions under 34
the Horizontal Property Act, is amended to add additional subdivisions to 35
read as follows: 36 HB1453
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(12) "Business day" means a Monday, Tuesday, Wednesday, 1
Thursday, or Friday that is not otherwise observed as an official state or 2
federal holiday; 3
(13) "Local government" means: 4
(A) A county; 5
(B) A city of the first class, a city of the second class, 6
or an unincorporated town; or 7
(C) Any other state entity or political subdivision of the 8
state or an agency, board, or commission of the state entity or political 9
subdivision of the state; and 10
(14) "Property owners' association" means an incorporated 11
nonprofit organization operating under recorded land agreements through which 12
each: 13
(A) Lot owner in a planned unit or other described land 14
area is automatically a member; and 15
(B) Lot is automatically subject to a charge for a 16
proportionate share of the expenses for the organization's activities and 17
services. 18
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SECTION 4. Arkansas Code § 18 -13-108(b), concerning the administration 20
and bylaws of a horizontal property regime, is amended to read as follows: 21
(b) The bylaws must necessarily shall provide for at least the 22
following: 23
(1) Form of administration, indicating whether this shall be in 24
charge of an administrator or of a board of administration, or otherwise, and 25
specifying the powers, manner of removal, and, where proper, the compensation 26
thereof; 27
(2) Method of calling or summoning the co -owners to assemble, 28
that a majority of at least fifty -one percent (51%) is required to adopt 29
decisions, who is to preside over the meeting, and who will keep the minute 30
book wherein the resolutions shall be recorded; 31
(3) Care, upkeep, and surveillance of the building and its 32
general or limited common elements and services; 33
(4) Manner of collecting from the co -owners for the payment of 34
the common expenses; and 35
(5) Designation and dismissal of the personnel necessary for the 36 HB1453
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works and the general or limited common services of the building ; 1
(6) Establishment of any fee structure, expenses, and 2
assessments; and 3
(7) Manner of making changes to any fee structure, expenses, and 4
assessments. 5
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SECTION 5. Arkansas Code § 18 -13-109 is amended to read as follows: 7
18-13-109. Modification of administration. 8
(a) The sole owner of the building or, if there is more than one (1), 9
the co-owners representing two -thirds (⅔) of the total value of the building 10
may, at any time, modify the system of administration, but each one of the 11
particulars set forth in § 18 -13-108 shall always be embodied in the bylaws 12
Any modifications to the system of administration or the bylaws of a 13
horizontal property regime organized under this subchapter shall be approved 14
using the procedures to adopt decisions under the bylaws of the horizontal 15
property regime. 16
(b) No such A modification made under subsection (a) of this section 17
may shall not be operative until it is embodied in a recorded instrument, 18
which shall be recorded in the same office and in the same manner as was the 19
master deed and original bylaws of the horizontal property regime involved. 20
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SECTION 6. Arkansas Code § 18 -13-110 is amended to read as follows: 22
18-13-110. Book of receipts and expenditures — Examination — Annual 23
financial report — Audit. 24
(a) The administrator, the board of administration, or other form of 25
administration specified in the bylaws shall : 26
(1) keep Keep a book with a detailed account, in chronological 27
order, of the receipts and expenditures affecting the building and its 28
administration and specifying the maintenance and repair expenses of the 29
common elements and any other expenses incurred ; and 30
(2) Submit an annual financial report to co -owners. 31
(b) Both the book and the vouchers accrediting the entries made 32
thereupon All financial records shall be available for examination by all the 33
co-owners at convenient hours on working days that shall be set and announced 34
for general knowledge during a business day . 35
(c)(1) A property owners' association organized under this subchapter 36 HB1453
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is subject to audit by Arkansas Legislative Audit if the property owners' 1
association: 2
(A) Receives state funding; or 3
(B) Provides services that are traditionally performed by 4
a local government. 5
(2) A member of the General Assembly may request an audit of a 6
property owners' association organized under this subchapter after approval 7
by the Legislative Joint Auditing Committee. 8
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SECTION 7. Arkansas Code § 18 -13-116(a)(1), concerning the liability 10
for expenses and assessments of a horizontal property regime, is amended to 11
read as follows: 12
(a)(1) The co-owners of the apartments and full-time residents are 13
bound to contribute pro rata, in the percentages computed according to § 18 -14
13-112, toward the expenses of administration and of maintenance and repair 15
of the general common elements and, in the proper case, of the limited common 16
elements of the building, and toward any other expense lawfully agreed upon 17
using the procedures to adopt decisions under the bylaws of the horizontal 18
property regime. 19
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