General Assembly Substitute Bill No. 6620 January Session, 2011 *_____HB06620JUD___041511____* General Assembly Substitute Bill No. 6620 January Session, 2011 *_____HB06620JUD___041511____* AN ACT CONCERNING CONDOMINIUMS AND COMMON INTEREST OWNERSHIP COMMUNITIES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 47-278 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011): (a) A declarant, association, unit owner or any other person subject to this chapter may bring an action to enforce a right granted or obligation imposed by this chapter, the declaration or the bylaws. The court may award reasonable attorney's fees and costs. (b) Parties to a dispute arising under this chapter, the declaration or the bylaws [may] shall agree to resolve the dispute by any form of binding or nonbinding alternative dispute resolution, provided: (1) A declarant may agree with the association to do so only after the period of declarant control has expired; and (2) an agreement to submit to any form of binding alternative dispute resolution must be in a record authenticated by the parties. Sec. 2. Section 20-458 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011): (a) No contract between a person contracting to provide association management services and an association which provides for the management of the association shall be valid or enforceable unless the contract is in writing and: (1) Provides that the person contracting to provide management services shall be registered as provided in sections 20-450 to 20-462, inclusive, and shall obtain a bond as provided in section 20-460; and (2) Provides that the person contracting to provide management services shall not issue a check on behalf of the association or transfer moneys exceeding a specified amount determined by the association without the written approval of an officer designated by the association; and (3) Provides that the person contracting to provide management services shall not enter into any contract binding the association exceeding a specified amount determined by the association, except in the case of an emergency, without the written approval of an officer designated by the association. (b) No contract to provide management services [may be] shall: (1) Be sold or assigned to another person without the approval of a majority of the executive board of the association; or (2) Include any clause, covenant or agreement that indemnifies or holds harmless the person contracting to provide management services from or against any liability for loss or damage resulting from such person's negligence or intentional acts or omissions. Sec. 3. Subsection (b) of section 47-255 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011): (b) In the case of a [building that contains] common interest community having attached units that are divided either by horizontal boundaries described in the declaration, or by vertical boundaries that comprise or are located within common walls between units, the insurance maintained under subdivision (1) of subsection (a) of this section, to the extent reasonably available, shall include the attached units, and all improvements and betterments installed by [unit] owners of the attached units, unless the declaration limits the association's authority to insure all improvements and betterments or the executive board decides, after giving notice and an opportunity for unit owners to comment, not to insure such improvements and betterments. In the case of common interest communities containing more than twelve units, unless the association insures all improvements and betterments, the association shall: (1) Prepare and maintain a schedule of the standard fixtures, improvements and betterments in the units, including any standard wall, floor and ceiling coverings covered by the association's insurance policy; (2) Provide such schedule at least annually to the unit owners in order to enable unit owners to coordinate their homeowners insurance coverage with the coverage afforded by the association's insurance policy; and (3) Include such schedule in any resale certificate prepared pursuant to section 47-270. Sec. 4. Subsection (e) of section 47-257 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011): (e) If any common expense is caused by the wilful misconduct of, or failure to comply with a written maintenance standard promulgated by the association by, [or gross negligence of] any unit owner or tenant or a guest or invitee of a unit owner or tenant, the association may, after notice and hearing, assess the portion of that common expense in excess of any insurance proceeds received by the association under its insurance policy, whether that portion results from the application of a deductible or otherwise, exclusively against that owner's unit. This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2011 47-278 Sec. 2 October 1, 2011 20-458 Sec. 3 October 1, 2011 47-255(b) Sec. 4 October 1, 2011 47-257(e) This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2011 47-278 Sec. 2 October 1, 2011 20-458 Sec. 3 October 1, 2011 47-255(b) Sec. 4 October 1, 2011 47-257(e) JUD Joint Favorable Subst. JUD Joint Favorable Subst.