Connecticut Senate Bill SB00119

Connecticut 2013 Regular Session

• Introduced: 1/11/13
• Refer: 1/11/13

Caption

An Act Concerning Approval By Condominium Unit Owners Of A Proposed Loan Agreement Which Includes An Assignment Of The Association's Right To Future Income As Security For The Loan.

Impact

The proposed amendments to section 47-261e of the general statutes reflect a significant shift in how financial decisions are made within condominium associations. By allowing a simple majority vote to approve loan agreements, it aims to facilitate easier access to funding for necessary improvements or operational needs. Supporters argue that this can lead to increased financial stability and community improvements, enabling associations to undertake projects that might otherwise be delayed or prevented due to the difficulty of gathering unanimous consent.

Summary

SB00119 is an act that modifies the approval process for loan agreements within condominium associations in common interest communities. Specifically, the bill stipulates that such loan agreements, which may involve assigning the association's right to future income as security for the loan, will be automatically approved unless a majority of unit owners vote against it. This change is intended to streamline the approval process and make it easier for condominium associations to secure financing by reducing the administrative burden associated with obtaining consensus from all unit owners.

Contention

However, the bill may not be without its controversies. Critics may express concerns that automatic approval could lead to a situation where the interests of a minority of unit owners are overlooked, especially if the association's decisions are made by those in the majority. Questions surrounding the adequacy of financial oversight and the potential for abuse of power by the association's board may arise. Opponents may argue that the bill dilutes the governance structure that is meant to protect all unit owners and ensure their interests are fairly represented in significant financial decisions.