Connecticut Senate Bill SB00212

Connecticut 2023 Regular Session

• Introduced: 1/17/23
• Refer: 1/17/23

Caption

An Act Requiring Condominium Reserve Fund Allocations.

Impact

The enactment of SB00212 would bring significant changes to the financial practices of condominium associations. It establishes a requirement for associations to evaluate their financial needs and adequately prepare for future costs related to property maintenance. This measure could enhance the stability of condominium finances by ensuring that funds are available for unexpected expenses, which could ultimately lead to protecting property values and improving living conditions for residents.

Summary

SB00212, known as the Act Requiring Condominium Reserve Fund Allocations, mandates condominium associations to perform reserve fund studies and allocate a certain percentage of their annual assessments into their reserves. The bill emphasizes the importance of financial planning within condominium management to ensure long-term sustainability and covers potential future repairs and maintenance needs. By requiring formal studies, the bill aims to provide a standard approach to managing funds in condominium developments across the state.

Contention

During discussions surrounding SB00212, some stakeholders expressed concerns regarding the potential financial burden that such requirements might impose on condominium associations, especially smaller ones. Critics argue that while the intent behind the bill is sound, it could lead to increased fees for residents, which may be challenging for some members of the community. Proponents, on the other hand, maintain that the long-term benefits of well-funded reserves will outweigh any short-term costs and that adequate reserves can prevent more significant financial distress in the future.