LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01013-R02- SB.docx 1 of 4 General Assembly Substitute Bill No. 1013 January Session, 2023 AN ACT CONCERNING COMMON INTEREST OWNERSHIP COMMUNITIES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (Effective from passage) Not later than February 1, 2024, the 1 Commissioner of Housing shall prepare and submit a report, in 2 accordance with the provisions of section 11-4a of the general statutes, 3 to the joint standing committee of the General Assembly having 4 cognizance of matters relating to real estate. Such report shall include 5 an assessment of the funding of reserves involving any common interest 6 community in this state. As used in this section, "common interest 7 community" has the same meaning as provided in section 47-202 of the 8 general statutes, as amended by this act. 9 Sec. 2. Section 47-261b of the general statutes is repealed and the 10 following is substituted in lieu thereof (Effective October 1, 2023): 11 (a) At least ten days before adopting, amending or repealing any rule, 12 the executive board shall give all unit owners notice of (1) The executive 13 board's intention to adopt, amend or repeal a rule and shall include with 14 such notice the text of the proposed rule or amendment, or the text of 15 the rule proposed to be repealed; and (2) the date on which the executive 16 board will act on the proposed rule, amendment or repeal after 17 considering comments from unit owners. 18 Substitute Bill No. 1013 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01013-R02- SB.docx } 2 of 4 (b) Following adoption, amendment or repeal of a rule, the 19 association shall give all unit owners notice of its action and include 20 with such notice a copy of any new or amended rule. 21 (c) Subject to the provisions of the declaration, an association may 22 adopt rules to establish and enforce construction and design criteria and 23 aesthetic standards. If an association adopts such rules, the association 24 shall adopt procedures for enforcement of those rules and for approval 25 of construction applications, including a reasonable time within which 26 the association shall act after an application is submitted and the 27 consequences of its failure to act. 28 (d) A rule regulating display of the flag of the United States shall be 29 consistent with federal law. In addition, the association may not prohibit 30 display, on a unit or on a limited common element adjoining a unit, of 31 the flag of this state, or signs regarding candidates for public or 32 association office or ballot questions, but the association may adopt 33 rules governing the time, place, size, number and manner of those 34 displays. 35 (e) Unit owners may peacefully assemble on the common elements to 36 consider matters related to the common interest community, but the 37 association may adopt rules governing the time, place and manner of 38 those assemblies. 39 (f) An association may adopt rules that affect the use of or behavior 40 in units that may be used for residential purposes, only to: 41 (1) Implement a provision of the declaration; 42 (2) Regulate any behavior in or occupancy of a unit which violates the 43 declaration or adversely affects the use and enjoyment of other units or 44 the common elements by other unit owners; or 45 (3) Restrict the leasing of residential units to the extent those rules are 46 reasonably designed to meet underwriting requirements of institutional 47 lenders that regularly make loans secured by first mortgages on units in 48 Substitute Bill No. 1013 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01013-R02- SB.docx } 3 of 4 common interest communities or regularly purchase those mortgages, 49 provided no such restriction shall be enforceable unless notice thereof is 50 recorded on the land records of each town in which any part of the 51 common interest community is located. Such notice shall be indexed by 52 the town clerk in the grantor index of such land records in the name of 53 the association. 54 (g) In the case of a common interest community that is not a 55 condominium or a cooperative, an association may not adopt or enforce 56 any rules that would have the effect of prohibiting any unit owner from 57 installing a solar power generating system on the roof of such owner's 58 unit, provided such roof is not shared with any other unit owner. An 59 association may adopt rules governing (1) the size and manner of 60 affixing, installing or removing a solar power generating system; (2) the 61 unit owner's responsibilities for periodic upkeep and maintenance of 62 such solar power generating system; and (3) a prohibition on any unit 63 owner installing a solar power generating system upon any common 64 elements of the association. 65 (h) No condominium association shall consist of less than fifty per 66 cent owner-occupied units, unless any such condominium association 67 adopts a rule that allows less than fifty per cent of such units to be 68 owner-occupied. 69 (i) No person shall own more than twenty-five per cent of all units in 70 a common interest community. 71 [(h)] (j) An association's internal business operating procedures need 72 not be adopted as rules. 73 [(i)] (k) Each rule of the association shall be reasonable. 74 Sec. 3. Subdivision (13) of section 47-202 of the general statutes is 75 repealed and the following is substituted in lieu thereof (Effective October 76 1, 2023): 77 (13) "Dealer" means a person who owns either six or more units, or 78 Substitute Bill No. 1013 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01013-R02- SB.docx } 4 of 4 [fifty] up to, but not exceeding, twenty-five per cent or more of all the 79 units, in a common interest community. 80 This act shall take effect as follows and shall amend the following sections: Section 1 from passage New section Sec. 2 October 1, 2023 47-261b Sec. 3 October 1, 2023 47-202(13) INS Joint Favorable Subst. APP Joint Favorable