Connecticut Senate Bill SB01208

Connecticut 2011 Regular Session

• Introduced: 3/17/11
• Refer: 3/17/11

Caption

An Act Concerning Financial Reporting By Condominium And Common Interest Community Associations.

Impact

One major impact of SB01208 is the shift towards stricter accountability for associations, particularly those formed before 1984, by ensuring they maintain distinct financial records for different accounts. The bill successfully addresses concerns over fund commingling and ensures that the financial activities of various entities associated with the community are transparent. By requiring monthly reports that are accessible to unit owners, the bill encourages more informed participation and oversight from the community.

Summary

SB01208, titled 'An Act Concerning Financial Reporting By Condominium And Common Interest Community Associations', aims to enhance financial oversight and transparency for condominium and other common interest community associations. The bill specifically mandates that each executive board develop separate monthly financial reports for any associated entities, such as taxing districts or recreational facilities, and delineate financial aggregates, including beginning and ending cash balances and specifics on cash received and dispersed. This requirement is designed to promote accountability within associations and protect the financial interests of unit owners.

Contention

Despite the anticipated benefits of enhanced financial transparency, there are notable points of contention regarding the necessity and implementation of these requirements. Some argue that the new reporting obligations could impose additional administrative burdens on small associations, particularly those with limited resources to comply with such oversight. Critics express concerns that the financial record-keeping mandates may be too onerous, potentially discouraging the establishment and maintenance of some associations, whereas proponents argue that the long-term benefits of financial clarity will outweigh the temporary inconvenience.