Arkansas 2025 Regular Session

Arkansas House Bill HB1453 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Stricken language would be deleted from and underlined language would be added to present law.
2	2	ANS204 02/03/2025 11:25:52 AM ANS204
3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 HOUSE BILL 1453 3
6	6	4
7	7	By: Representative S. Meeks 5
8	8	6
9	9	7
10	10	For An Act To Be Entitled 8
11	11	AN ACT TO AMEND THE HORIZONTAL PROPERTY ACT; TO 9
12	12	REGULATE PROPERTY OWNERS' ASSOCIATIONS; AND FOR OTHER 10
13	13	PURPOSES. 11
14	14	12
15	15	13
16	16	Subtitle 14
17	17	TO AMEND THE HORIZONTAL PROPERTY ACT; 15
18	18	AND TO REGULATE PROPERTY OWNERS' 16
19	19	ASSOCIATIONS. 17
20	20	18
21	21	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
22	22	20
23	23	SECTION 1. Arkansas Code § 18-13-102(2), concerning the definition of 21
24	24	"co-owner" under the Horizontal Property Act, is amended to read as follows: 22
25	25	(2) "Co-owner" means a person, firm, corporation, partnership, 23
26	26	association, trust, or other legal entity, or any combination thereof, who 24
27	27	owns an apartment within the building or is a member of a property owners' 25
28	28	association; 26
29	29	27
30	30	SECTION 2. Arkansas Code § 18 -13-102(8), concerning the definition of 28
31	31	"person" under the Horizontal Property Act, is amended to read as follows: 29
32	32	(8) "Person" means an individual, firm, corporation, 30
33	33	partnership, association, trust, member of a property owners' association, or 31
34	34	other legal entity, or any combination thereof; 32
35	35	33
36	36	SECTION 3. Arkansas Code § 18 -13-102, concerning the definitions under 34
37	37	the Horizontal Property Act, is amended to add additional subdivisions to 35
38	38	read as follows: 36 HB1453
39	39
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41	41	(12) "Business day" means a Monday, Tuesday, Wednesday, 1
42	42	Thursday, or Friday that is not otherwise observed as an official state or 2
43	43	federal holiday; 3
44	44	(13) "Local government" means: 4
45	45	(A) A county; 5
46	46	(B) A city of the first class, a city of the second class, 6
47	47	or an unincorporated town; or 7
48	48	(C) Any other state entity or political subdivision of the 8
49	49	state or an agency, board, or commission of the state entity or political 9
50	50	subdivision of the state; and 10
51	51	(14) "Property owners' association" means an incorporated 11
52	52	nonprofit organization operating under recorded land agreements through which 12
53	53	each: 13
54	54	(A) Lot owner in a planned unit or other described land 14
55	55	area is automatically a member; and 15
56	56	(B) Lot is automatically subject to a charge for a 16
57	57	proportionate share of the expenses for the organization's activities and 17
58	58	services. 18
59	59	19
60	60	SECTION 4. Arkansas Code § 18 -13-108(b), concerning the administration 20
61	61	and bylaws of a horizontal property regime, is amended to read as follows: 21
62	62	(b) The bylaws must necessarily shall provide for at least the 22
63	63	following: 23
64	64	(1) Form of administration, indicating whether this shall be in 24
65	65	charge of an administrator or of a board of administration, or otherwise, and 25
66	66	specifying the powers, manner of removal, and, where proper, the compensation 26
67	67	thereof; 27
68	68	(2) Method of calling or summoning the co -owners to assemble, 28
69	69	that a majority of at least fifty -one percent (51%) is required to adopt 29
70	70	decisions, who is to preside over the meeting, and who will keep the minute 30
71	71	book wherein the resolutions shall be recorded; 31
72	72	(3) Care, upkeep, and surveillance of the building and its 32
73	73	general or limited common elements and services; 33
74	74	(4) Manner of collecting from the co -owners for the payment of 34
75	75	the common expenses; and 35
76	76	(5) Designation and dismissal of the personnel necessary for the 36 HB1453
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79	79	works and the general or limited common services of the building ; 1
80	80	(6) Establishment of any fee structure, expenses, and 2
81	81	assessments; and 3
82	82	(7) Manner of making changes to any fee structure, expenses, and 4
83	83	assessments. 5
84	84	6
85	85	SECTION 5. Arkansas Code § 18 -13-109 is amended to read as follows: 7
86	86	18-13-109. Modification of administration. 8
87	87	(a) The sole owner of the building or, if there is more than one (1), 9
88	88	the co-owners representing two -thirds (⅔) of the total value of the building 10
89	89	may, at any time, modify the system of administration, but each one of the 11
90	90	particulars set forth in § 18 -13-108 shall always be embodied in the bylaws 12
91	91	Any modifications to the system of administration or the bylaws of a 13
92	92	horizontal property regime organized under this subchapter shall be approved 14
93	93	using the procedures to adopt decisions under the bylaws of the horizontal 15
94	94	property regime. 16
95	95	(b) No such A modification made under subsection (a) of this section 17
96	96	may shall not be operative until it is embodied in a recorded instrument, 18
97	97	which shall be recorded in the same office and in the same manner as was the 19
98	98	master deed and original bylaws of the horizontal property regime involved. 20
99	99	21
100	100	SECTION 6. Arkansas Code § 18 -13-110 is amended to read as follows: 22
101	101	18-13-110. Book of receipts and expenditures — Examination — Annual 23
102	102	financial report — Audit. 24
103	103	(a) The administrator, the board of administration, or other form of 25
104	104	administration specified in the bylaws shall : 26
105	105	(1) keep Keep a book with a detailed account, in chronological 27
106	106	order, of the receipts and expenditures affecting the building and its 28
107	107	administration and specifying the maintenance and repair expenses of the 29
108	108	common elements and any other expenses incurred ; and 30
109	109	(2) Submit an annual financial report to co -owners. 31
110	110	(b) Both the book and the vouchers accrediting the entries made 32
111	111	thereupon All financial records shall be available for examination by all the 33
112	112	co-owners at convenient hours on working days that shall be set and announced 34
113	113	for general knowledge during a business day . 35
114	114	(c)(1) A property owners' association organized under this subchapter 36 HB1453
115	115
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117	117	is subject to audit by Arkansas Legislative Audit if the property owners' 1
118	118	association: 2
119	119	(A) Receives state funding; or 3
120	120	(B) Provides services that are traditionally performed by 4
121	121	a local government. 5
122	122	(2) A member of the General Assembly may request an audit of a 6
123	123	property owners' association organized under this subchapter after approval 7
124	124	by the Legislative Joint Auditing Committee. 8
125	125	9
126	126	SECTION 7. Arkansas Code § 18 -13-116(a)(1), concerning the liability 10
127	127	for expenses and assessments of a horizontal property regime, is amended to 11
128	128	read as follows: 12
129	129	(a)(1) The co-owners of the apartments and full-time residents are 13
130	130	bound to contribute pro rata, in the percentages computed according to § 18 -14
131	131	13-112, toward the expenses of administration and of maintenance and repair 15
132	132	of the general common elements and, in the proper case, of the limited common 16
133	133	elements of the building, and toward any other expense lawfully agreed upon 17
134	134	using the procedures to adopt decisions under the bylaws of the horizontal 18
135	135	property regime. 19
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