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 1660 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; TO REQUIRE AN 10
AUDIT FOR CERTAIN PROPERTY OWNERS ASSOCIATIONS; AND 11
FOR OTHER PURPOSES. 12
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Subtitle 15
TO AMEND THE HORIZONTAL PROPERTY ACT; TO 16
REGULATE PROPERTY OWNERS ASSOCIATIONS; 17
AND TO REQUIRE AN AUDIT FOR CERTAIN 18
PROPERTY OWNERS ASSOCIATIONS. 19
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
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SECTION 1. Arkansas Code § 18 -13-102, concerning the definitions under 23
the Horizontal Property Act, is amended to add additional subdivisions to 24
read as follows: 25
(12) "Local government" means: 26
(A) A county; 27
(B) A city of the first class, a city of the second class, 28
or an unincorporated town; or 29
(C) Any other state entity or political subdivision of the 30
state or an agency, board, or commission of the state entity or political 31
subdivision of the state; 32
(13) "Property owners association" means an incorporated 33
nonprofit organization operating under recorded land agreements through which 34
each: 35
(A) Lot owner in a planned unit or other described land 36 HB1660
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area is automatically a member; 1
(B) Lot is automatically subject to a charge for a 2
proportionate share of the expenses for the organization's activities and 3
services; and 4
(C) Incorporated nonprofit organization has at least one 5
thousand (1,000) members; and 6
(14)(A) "Services traditionally performed by a local government" 7
means services provided to members of a property owners association. 8
(B) "Services traditionally performed by a local 9
government" includes without limitation: 10
(i) Road maintenance; 11
(ii) Sewer services; 12
(iii) Trash services; and 13
(iv) Water services. 14
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SECTION 2. Arkansas Code § 18 -13-110 is amended to read as follows: 16
18-13-110. Book of receipts and expenditures — Examination — Annual 17
financial report — Audit. 18
(a) The administrator, the board of administration, or other form of 19
administration specified in the bylaws shall keep a book with a detailed 20
account, in chronological order, of the receipts and expenditures affecting 21
the building and its administration and specifying the maintenance and repair 22
expenses of the common elements and any other expenses incurred. 23
(b) Both the book and the vouchers accrediting the entries made 24
thereupon All financial records shall be available for examination by all the 25
co-owners at convenient hours on working days that shall be set and announced 26
for general knowledge. 27
(c)(1) A property owners association organized under this subchapter 28
may be subject to review by Arkansas Legislative Audit if the property owners 29
association provides services traditionally performed by a local government. 30
(2) A review under subdivision (c)(1) of this section shall be 31
conducted by Arkansas Legislative Audit only after approval by the 32
Legislative Joint Auditing Committee. 33
(3) This subsection does not limit the authority of the 34
Legislative Auditor to conduct an audit under § 10 -4-401 et seq. 35
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