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OLR Bill Analysis
sSB 1013
AN ACT CONCERNING COMMON INTEREST OWNERSHIP
COMMUNITIES.
SUMMARY
This bill makes various changes to the Common Interest Ownership
Act (CIOA, see BACKGROUND ) and addresses related issues.
It requires a condominium association to have at least 50% owner-
occupied units unless the association adopts a rule allowing for less than
50% to be owner occupied. Also, it prohibits a person (e.g., an individual
or entity) from owning more than 25% of all units in a common interest
community.
The bill correspondingly redefines the term “dealer” in CIOA as a
person who owns at least six units or up to 25% of all units in a common
interest community, rather than at least 50% of the units as under
current law. By law, dealers must issue public offering statements when
offering units for sale (CGS §§ 47-263 & 47-270).
Lastly, the bill requires the housing commissioner to report to the
Insurance and Real Estate Committee by February 1, 2024, on common
interest communities’ reserve funding.
EFFECTIVE DATE: October 1, 2023, except the provision requiring
the housing commissioner to report on reserve funding is effective upon
passage.
BACKGROUND
Common Interest Ownership Act
CIOA governs condominiums and other common interest
communities formed in Connecticut on and after January 1, 1984 (CGS
§ 47-200 et seq.). Certain CIOA provisions (including those amended by 2023SB-01013-R000342-BA.DOCX
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this bill) also apply to common interest communities created in
Connecticut before January 1, 1984, but do not invalidate existing
provisions of the communities’ governing instruments. Common
interest communities created before that date can amend their
governing instruments to conform to portions of CIOA that do not
automatically apply (CGS §§ 47-214, -216 & -218).
COMMITTEE ACTION
Insurance and Real Estate Committee
Joint Favorable Substitute
Yea 8 Nay 4 (03/14/2023)