1 | 1 | | 24 LC 48 1067 |
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2 | 2 | | House Bill 1308 |
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3 | 3 | | By: Representatives Holly of the 116 |
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4 | 4 | | th |
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5 | 5 | | , Bell of the 75 |
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6 | 6 | | th |
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7 | 7 | | , Hutchinson of the 106 |
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8 | 8 | | th |
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9 | 9 | | , Glaize of the |
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10 | 10 | | 67 |
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11 | 11 | | th |
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12 | 12 | | , and Park of the 107 |
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13 | 13 | | th |
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14 | 14 | | |
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15 | 15 | | A BILL TO BE ENTITLED |
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16 | 16 | | AN ACT |
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17 | 17 | | To amend Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to |
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18 | 18 | | 1 |
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19 | 19 | | regulation of specialized land transactions, so as to provide for protections for homeowners,2 |
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20 | 20 | | condominium owners, and property owners in community associations; to provide for a short3 |
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21 | 21 | | title; to provide for definitions; to require declarants, developers, or other establishing entities4 |
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22 | 22 | | to provide for budgets and reserve account funding for maintenance of community amenities;5 |
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23 | 23 | | to require performance and maintenance bonds for community amenities; to implement6 |
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24 | 24 | | requirements and procedures for turnover and transition from declarants, developers, or other7 |
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25 | 25 | | establishing entities to property owners comprising the community association; to provide8 |
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26 | 26 | | for civil causes of action for violations; to provide for civil penalties for violations and the9 |
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27 | 27 | | recovery of litigation costs; to provide for related matters; to provide for an effective date and10 |
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28 | 28 | | applicability; to repeal conflicting laws; and for other purposes.11 |
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29 | 29 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12 |
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30 | 30 | | SECTION 1.13 |
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31 | 31 | | Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to regulation of14 |
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32 | 32 | | specialized land transactions, is amended by adding a new article to read as follows:15 |
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33 | 33 | | H. B. 1308 |
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34 | 34 | | - 1 - 24 LC 48 1067 |
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35 | 35 | | "ARTICLE 816 |
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36 | 36 | | 44-3-260.17 |
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37 | 37 | | This article shall be known and may be cited as the 'Community Association Transparency18 |
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38 | 38 | | and Protection Act.'19 |
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39 | 39 | | 44-3-261.20 |
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40 | 40 | | As used in this article, the term:21 |
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41 | 41 | | (1) 'Amenities' mean retention and detention systems or common area facilities.22 |
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42 | 42 | | (2) 'Common area facilities' means clubhouses; golf courses; swimming pools; tennis23 |
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43 | 43 | | courts, basketball courts, and other recreational courts; sidewalks; cart paths; nature trails;24 |
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44 | 44 | | street lighting; accent lighting; or any other facility that is intended to be communally25 |
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45 | 45 | | shared by property owners as recorded in the plat last filed at the time of inception.26 |
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46 | 46 | | (3) 'Community association' means a nongovernmental association of participating27 |
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47 | 47 | | members in a delineated geographic area comprising a neighborhood, condominium,28 |
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48 | 48 | | cooperative, or group of homeowners or property owners, including, but not limited to,29 |
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49 | 49 | | a homeowners' association, condominium association, and property owners' association.30 |
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50 | 50 | | (4) 'Condominium association' means an organization or corporation formed pursuant31 |
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51 | 51 | | to the Georgia Condominium Act for the purpose of exercising the powers of an32 |
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52 | 52 | | association of any condominium under such act.33 |
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53 | 53 | | (5) 'Homeowners' association' means an organization or corporation of homeowners or34 |
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54 | 54 | | declarants or developers of a particular subdivision, planned community, or condominium35 |
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55 | 55 | | that makes and enforces rules for the properties within its jurisdiction and has an elected36 |
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56 | 56 | | board of directors that enforces and oversees the organization's governing documents.37 |
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57 | 57 | | (6) 'Inception' means the first property sale of said community to a member or future38 |
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58 | 58 | | member of the community association who is not a declarant, developer, or other39 |
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59 | 59 | | establishing entity.40 |
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60 | 60 | | H. B. 1308 |
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61 | 61 | | - 2 - 24 LC 48 1067 |
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62 | 62 | | (7) 'Members other than the declarant, developer, or other establishing entity' shall not41 |
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63 | 63 | | include builders, contractors, or others who purchase a parcel for the purpose of42 |
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64 | 64 | | constructing improvements thereon for resale.43 |
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65 | 65 | | (8) 'Property owners' association' means a corporation formed pursuant to the Georgia44 |
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66 | 66 | | Property Owners' Association Act for the purpose of exercising the powers of an45 |
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67 | 67 | | association of property owners under such act.46 |
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68 | 68 | | (9) 'Retention and detention systems' means any storm-water management system,47 |
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69 | 69 | | method, or structure that is designed to provide storm-water storage or release for surface48 |
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70 | 70 | | runoff as recorded in the plat last filed at the time of inception.49 |
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71 | 71 | | (10) 'Turnover and transition' means the relinquishment of control by a declarant,50 |
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72 | 72 | | developer, or other establishing entity of the amenities and community association51 |
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73 | 73 | | voluntarily or by operation of law whereby the property owners comprising the property52 |
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74 | 74 | | jurisdiction of the community association take control of such amenities and community53 |
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75 | 75 | | association.54 |
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76 | 76 | | 44-3-262.55 |
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77 | 77 | | (a) At the establishment of a community association by a declarant, developer, or other56 |
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78 | 78 | | establishing entity, and prior to the turnover and transition, such declarant, developer, or57 |
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79 | 79 | | other establishing entity shall establish a two-year operating and expense budget for any58 |
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80 | 80 | | construction and ongoing maintenance or replacement of amenities. Such budget shall be59 |
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81 | 81 | | verified by a real estate appraiser licensed pursuant to Chapter 39A of Title 40 and60 |
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82 | 82 | | established using a good-faith method of estimation for all such construction and ongoing61 |
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83 | 83 | | maintenance or replacement expenses and shall include a reserve fund account as provided62 |
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84 | 84 | | for in subsection (b) of this Code section for such construction and ongoing maintenance63 |
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85 | 85 | | or replacement of such amenities. Such budget shall be maintained as a record by such64 |
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86 | 86 | | declarant, developer, or other establishing entity, and all such records shall be provided to65 |
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87 | 87 | | H. B. 1308 |
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88 | 88 | | - 3 - 24 LC 48 1067 |
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89 | 89 | | the unit or property owners upon creation of such community association and upon66 |
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90 | 90 | | turnover and transition.67 |
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91 | 91 | | (b) The reserve fund account provided for in subsection (a) of this Code section shall be68 |
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92 | 92 | | fully funded by such declarant, developer, or other establishing entity, and shall include69 |
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93 | 93 | | capital for all items that have a construction or ongoing maintenance or replacement70 |
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94 | 94 | | expense that exceeds or will exceed $10,000.00 over the two-year period. All funds in the71 |
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95 | 95 | | reserve account shall be maintained by the declarant, developer, or other establishing entity72 |
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96 | 96 | | in a separate account to be held in trust upon inception and until turnover and transition.73 |
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97 | 97 | | (c) The amount to be maintained in the reserve fund account by the declarant, developer,74 |
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98 | 98 | | or other establishing entity shall be computed using a formula based upon estimated75 |
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99 | 99 | | remaining useful life and estimated replacement cost or ongoing maintenance expense of76 |
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100 | 100 | | each reserve item. The declarant, developer, or other establishing entity may adjust77 |
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101 | 101 | | replacement reserve assessments annually to take into account any changes in estimates or78 |
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102 | 102 | | extension of the useful life of an item caused by new construction or maintenance or79 |
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103 | 103 | | replacement.80 |
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104 | 104 | | (d) The establishment of the operating and expense budget, the maintenance of the reserve81 |
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105 | 105 | | fund account, and any adjustments in such reserve fund account shall be managed by an82 |
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106 | 106 | | independent certified public accountant who is licensed by this state who shall certify83 |
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107 | 107 | | whether activities concerning such budget, fund, or adjustments are in conformance with84 |
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108 | 108 | | the purposes of this Code section. The declarant, developer, or other establishing entity85 |
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109 | 109 | | shall make such activities, records, and certifications open to public inspection.86 |
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110 | 110 | | 44-3-263.87 |
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111 | 111 | | (a)(1) Prior to the conveyance of the first property that is or shall be subject to88 |
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112 | 112 | | membership in a community association, a declarant, developer, or other establishing89 |
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113 | 113 | | entity shall post a performance bond with the governing authority of the city or county90 |
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114 | 114 | | with jurisdiction, with the community association as successor in interest to such bond,91 |
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115 | 115 | | H. B. 1308 |
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116 | 116 | | - 4 - 24 LC 48 1067 |
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117 | 117 | | for 125 percent of the cost of the construction and build-out of amenities. The amount92 |
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118 | 118 | | affixed to the cost of the construction and build-out of amenities shall be verified by a93 |
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119 | 119 | | real estate appraiser licensed under Chapter 39A of Title 43 where such verification shall94 |
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120 | 120 | | be based on the plat which was last filed at the time of inception as well as other95 |
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121 | 121 | | architectural and construction planning documents and economic forecasts.96 |
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122 | 122 | | (2) Prior to the conveyance of the first property that is or shall be subject to membership97 |
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123 | 123 | | in a community association, a declarant, developer, or other establishing entity shall post98 |
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124 | 124 | | a maintenance bond with the governing authority of the city or county with jurisdiction,99 |
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125 | 125 | | with the community association as successor in interest to such bond, for a maintenance100 |
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126 | 126 | | term of at least 24 months beginning at inception.101 |
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127 | 127 | | (b) The bonds required under subsection (a) of this Code section shall be issued by a102 |
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128 | 128 | | person licensed to do such business in this state and who shall appear on the list of certified103 |
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129 | 129 | | companies as issued by the United States Department of the Treasury.104 |
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130 | 130 | | (c)(1) The construction and build-out of amenities shall be complete and fully105 |
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131 | 131 | | operational, and turnover and transition shall occur, within two years after inception,106 |
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132 | 132 | | otherwise the performance bond is forfeited.107 |
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133 | 133 | | (2) In the case of forfeiture the governing authority of the city or county shall pay over108 |
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134 | 134 | | funds from the bonds to the clerk of superior court of the county having jurisdiction, who109 |
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135 | 135 | | shall segregate the funds pending proper petition for the clerk to pay over such funds to110 |
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136 | 136 | | the community association as the successor in interest, and such funds shall then be used111 |
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137 | 137 | | as provided for by the superior court for the purposes of this article.112 |
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138 | 138 | | (3) If no proper petition as provided for in paragraph (2) of this subsection is made113 |
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139 | 139 | | within two years after such funds have been paid over to the clerk of superior court, then114 |
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140 | 140 | | such funds shall be paid into the general funds of the city or county with jurisdiction.115 |
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141 | 141 | | H. B. 1308 |
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142 | 142 | | - 5 - 24 LC 48 1067 |
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143 | 143 | | 44-3-264.116 |
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144 | 144 | | Not more than 90 days after turnover and transition, the declarant, developer, or other117 |
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145 | 145 | | establishing entity shall deliver to the condominium association, at the declarant's,118 |
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146 | 146 | | developer's, or other establishing entity's expense, all property, information, and reports of119 |
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147 | 147 | | the unit owners and of the condominium association which is held or controlled by the120 |
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148 | 148 | | declarant, developer, or other establishing entity, including, but not limited to:121 |
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149 | 149 | | (1) The original or a photocopy of the recorded declaration of condominiums and all122 |
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150 | 150 | | amendments thereto. If a photocopy is provided, it shall be certified by affidavit of the123 |
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151 | 151 | | declarant, developer, or other establishing entity or by their officer or agent as being a124 |
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152 | 152 | | complete copy of the actual recorded declaration;125 |
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153 | 153 | | (2) A certified copy of the articles of incorporation of the condominium association or,126 |
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154 | 154 | | if the condominium association was established prior to the Georgia Condominium Act127 |
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155 | 155 | | and is not incorporated, copies of the documents creating the condominium association;128 |
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156 | 156 | | (3) A copy of the bylaws and amendments thereto;129 |
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157 | 157 | | (4) The minute books, including all minutes, and other books and records of the130 |
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158 | 158 | | condominium association, if any;131 |
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159 | 159 | | (5) Any house rules and regulations that have been promulgated;132 |
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160 | 160 | | (6) Resignations of officers and members of the board of directors who are required to133 |
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161 | 161 | | resign because the declarant, developer, or other establishing entity is required to134 |
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162 | 162 | | relinquish control of the condominium association;135 |
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163 | 163 | | (7) The financial records, including financial statements of the condominium association,136 |
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164 | 164 | | and source documents from the incorporation of the condominium association through137 |
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165 | 165 | | the date of turnover and transition. Such records shall be audited by an independent138 |
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166 | 166 | | certified public accountant licensed by this state for the period from the incorporation of139 |
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167 | 167 | | the condominium association or from the period covered by the last audit if an audit has140 |
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168 | 168 | | been performed for each fiscal year since incorporation by an independent certified public141 |
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169 | 169 | | accountant licensed by this state. All financial statements must be prepared in accordance142 |
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170 | 170 | | H. B. 1308 |
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171 | 171 | | - 6 - 24 LC 48 1067 |
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172 | 172 | | with generally accepted accounting principles and must be audited in accordance with143 |
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173 | 173 | | generally accepted auditing standards. The accountant performing the audit shall144 |
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174 | 174 | | examine, to the extent necessary, supporting documents and records, including the cash145 |
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175 | 175 | | disbursements and related paid invoices to determine if expenditures were for146 |
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176 | 176 | | condominium association purposes and the billings, cash receipts, and related records to147 |
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177 | 177 | | determine that the declarant, developer, or other establishing entity was charged and paid148 |
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178 | 178 | | the proper amounts of assessments. Audits required by this paragraph shall be paid for149 |
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179 | 179 | | by the declarant, developer, or other establishing entity;150 |
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180 | 180 | | (8) All condominium association funds or the control thereof;151 |
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181 | 181 | | (9) All tangible personal property that is property of the condominium association, which152 |
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182 | 182 | | is represented by the declarant, developer, or other establishing entity to be part of the153 |
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183 | 183 | | common elements or which is ostensibly part of the common elements, and an inventory154 |
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184 | 184 | | of that property;155 |
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185 | 185 | | (10) A copy of the plans and specifications utilized in the construction or remodeling of156 |
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186 | 186 | | improvements and the supplying of equipment to the condominium and in the157 |
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187 | 187 | | construction and installation of all mechanical components serving the improvements and158 |
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188 | 188 | | the site with a certificate in affidavit form of the declarant, developer, or other159 |
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189 | 189 | | establishing entity, or their agent or an architect or engineer authorized to practice in this160 |
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190 | 190 | | state, that such plans and specifications represent, to the best of his or her knowledge and161 |
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191 | 191 | | belief, the actual plans and specifications utilized in the construction and improvement162 |
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192 | 192 | | of the condominium association property and for the construction and installation of the163 |
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193 | 193 | | mechanical components serving the improvements. If the condominium property has164 |
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194 | 194 | | been declared a condominium more than three years after the completion of construction165 |
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195 | 195 | | or remodeling of the improvements, the requirements of this paragraph shall not apply;166 |
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196 | 196 | | (11) The names and addresses of all contractors, subcontractors, and suppliers utilized167 |
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197 | 197 | | in the construction or remodeling of the improvements and in the landscaping of the168 |
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198 | 198 | | condominium or condominium association property which the declarant, developer, or169 |
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199 | 199 | | H. B. 1308 |
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200 | 200 | | - 7 - 24 LC 48 1067 |
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201 | 201 | | other establishing entity had knowledge of at any time in the development of the170 |
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202 | 202 | | condominium;171 |
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203 | 203 | | (12) Insurance policies;172 |
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204 | 204 | | (13) Copies of any certificates of occupancy that may have been issued for the173 |
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205 | 205 | | condominium property;174 |
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206 | 206 | | (14) Any other permits applicable to the condominium property which have been issued175 |
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207 | 207 | | by governmental bodies and are in force or were issued within one year prior to the date176 |
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208 | 208 | | the unit owners other than the declarant, developer, or other establishing entity took177 |
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209 | 209 | | control of the condominium association;178 |
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210 | 210 | | (15) All written warranties of the contractor, subcontractors, suppliers, and179 |
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211 | 211 | | manufacturers, if any, that built the condominium property or condominium association180 |
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212 | 212 | | properties that are still effective;181 |
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213 | 213 | | (16) A roster of unit owners and their addresses and telephone numbers, if known, as182 |
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214 | 214 | | shown on the declarant's records;183 |
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215 | 215 | | (17) Leases of the common elements and other leases to which the condominium184 |
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216 | 216 | | association is a party;185 |
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217 | 217 | | (18) Employment contracts or service contracts in which the condominium association186 |
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218 | 218 | | is one of the contracting parties or service contracts in which the condominium187 |
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219 | 219 | | association or the unit owners have an obligation or responsibility, directly or indirectly,188 |
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220 | 220 | | to pay some or all of the fee or charge of the person or persons performing the service;189 |
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221 | 221 | | (19) All other contracts to which the condominium association is a party;190 |
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222 | 222 | | (20) A turnover and transition inspection report included in the official records, under191 |
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223 | 223 | | seal of an architect or engineer authorized to practice in this state, attesting to required192 |
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224 | 224 | | maintenance, useful life, and replacement costs of common elements, including, but not193 |
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225 | 225 | | limited to, the roof, structure, fireproofing and fire protection systems, elevators, heating194 |
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226 | 226 | | and cooling systems, plumbing, electrical system, swimming pool or spa and equipment,195 |
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227 | 227 | | H. B. 1308 |
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228 | 228 | | - 8 - 24 LC 48 1067 |
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229 | 229 | | seawalls, pavement and parking areas, drainage systems, painting, and irrigation systems;196 |
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230 | 230 | | and197 |
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231 | 231 | | (21) A copy of the certificate of a surveyor and mapper recorded, or the recorded198 |
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232 | 232 | | instrument, that transfers title to a unit in the condominium which is not accompanied by199 |
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233 | 233 | | a recorded assignment of the declarant's, developer's, or other establishing entity's rights200 |
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234 | 234 | | in favor of the grantee of such unit, whichever occurred first.201 |
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235 | 235 | | 44-3-265.202 |
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236 | 236 | | (a) In addition to the requirements set forth in Code Section 44-3-227, homeowners'203 |
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237 | 237 | | association or property owners' association members other than the declarant, developer,204 |
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238 | 238 | | or other establishing entity are entitled to elect at least one member of the board of205 |
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239 | 239 | | directors of the homeowners' association or property owners' association if 50 percent of206 |
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240 | 240 | | the parcels in all phases of the community which will ultimately be operated by the207 |
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241 | 241 | | homeowners' or property owners' association have been conveyed to the members.208 |
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242 | 242 | | (b) Members of the homeowners' association or property owners' association other than209 |
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243 | 243 | | the declarant, developer, or other establishing entity are entitled to elect at least a majority210 |
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244 | 244 | | of the members of the board of directors of the homeowners' association or property211 |
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245 | 245 | | owners' association when the earlier of the following events occurs:212 |
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246 | 246 | | (1) Ninety days after 90 percent of the parcels in all phases of the community that will213 |
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247 | 247 | | ultimately be operated by the homeowners' association or property owners' association214 |
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248 | 248 | | have been conveyed to the members;215 |
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249 | 249 | | (2) Such other percentage of the parcels has been conveyed to the members or such other216 |
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250 | 250 | | date or event has occurred as is set forth in the governing documents in order to comply217 |
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251 | 251 | | with the requirements of any governmentally chartered entity with regard to the mortgage218 |
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252 | 252 | | financing of parcels;219 |
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253 | 253 | | (3) Upon the declarant, developer, or other establishing entity abandoning or deserting220 |
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254 | 254 | | its responsibility to maintain and complete the amenities or infrastructure as disclosed in221 |
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255 | 255 | | H. B. 1308 |
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256 | 256 | | - 9 - 24 LC 48 1067 |
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257 | 257 | | the governing documents. For purposes of this paragraph, there is a rebuttable222 |
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258 | 258 | | presumption that the declarant, developer, or other establishing entity has abandoned and223 |
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259 | 259 | | deserted the property if the declarant, developer, or other establishing entity has unpaid224 |
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260 | 260 | | assessments for a period of more than two years;225 |
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261 | 261 | | (4) Upon the declarant, developer, or other establishing entity filing a petition seeking226 |
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262 | 262 | | protection under Chapter 7 of the United States Bankruptcy Code;227 |
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263 | 263 | | (5) Upon the declarant, developer, or other establishing entity losing title to the property228 |
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264 | 264 | | through a foreclosure action or the transfer of a deed in lieu of foreclosure, unless the229 |
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265 | 265 | | successor owner has accepted an assignment of the declarant's, developer's, or other230 |
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266 | 266 | | establishing entity's rights and responsibilities first arising after the date of such231 |
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267 | 267 | | assignment; or232 |
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268 | 268 | | (6) Upon a receiver for the declarant, developer, or other establishing entity being233 |
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269 | 269 | | appointed by a superior court and not being discharged within 30 days after such234 |
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270 | 270 | | appointment, unless the court determines within 30 days after such appointment that235 |
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271 | 271 | | transfer of control would be detrimental to the association or its members.236 |
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272 | 272 | | (c) The declarant, developer, or other establishing entity is entitled to elect at least one237 |
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273 | 273 | | member of the board of directors of the homeowners' association or property owners'238 |
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274 | 274 | | association as long as the declarant, developer, or other establishing entity holds for sale239 |
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275 | 275 | | in the ordinary course of business at least 5 percent of the parcels in all phases of the240 |
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276 | 276 | | community.241 |
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277 | 277 | | (d) After the declarant, developer, or other establishing entity relinquishes control of the242 |
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278 | 278 | | homeowners' association or property owners' association, the declarant, developer, or other243 |
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279 | 279 | | establishing entity may exercise the right to vote on any matter in the same manner as any244 |
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280 | 280 | | other member, except for purposes of reacquiring control of the homeowners' association245 |
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281 | 281 | | or property owners' association or selecting the majority of the members of the board of246 |
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282 | 282 | | directors.247 |
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283 | 283 | | H. B. 1308 |
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284 | 284 | | - 10 - 24 LC 48 1067 |
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285 | 285 | | (e) At such time that the members of the homeowners' association or property owners'248 |
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286 | 286 | | association are entitled to elect at least a majority of the board of directors of the249 |
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287 | 287 | | homeowners' association or property owners' association, the declarant, developer, or other250 |
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288 | 288 | | establishing entity, at the declarant's, developer's, or other establishing entity's expense, and251 |
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289 | 289 | | not later than 90 days thereafter, shall deliver the following documents to the board of252 |
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290 | 290 | | directors of the association:253 |
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291 | 291 | | (1) All deeds to common property owned by the homeowners' association or property254 |
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292 | 292 | | owners' association;255 |
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293 | 293 | | (2) The original of the association's declarations of covenants and restrictions;256 |
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294 | 294 | | (3) A certified copy of the articles of incorporation of the association;257 |
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295 | 295 | | (4) A copy of the bylaws;258 |
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296 | 296 | | (5) The minute books, including all minutes;259 |
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297 | 297 | | (6) The books and records of the association;260 |
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298 | 298 | | (7) Policies, rules, and regulations, if any, which have been adopted;261 |
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299 | 299 | | (8) Resignations of directors who are required to resign because the declarant is required262 |
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300 | 300 | | to relinquish control of the association;263 |
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301 | 301 | | (9) The financial records of the association from the date of incorporation through the264 |
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302 | 302 | | date of turnover;265 |
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303 | 303 | | (10) All association funds and control thereof;266 |
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304 | 304 | | (11) All tangible property of the association;267 |
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305 | 305 | | (12) A copy of all contracts which may be in force with the association as one of the268 |
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306 | 306 | | parties;269 |
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307 | 307 | | (13) A list of the names and addresses and telephone numbers of all contractors,270 |
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308 | 308 | | subcontractors, or others in the current employ of the association;271 |
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309 | 309 | | (14) Any and all insurance policies in effect;272 |
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310 | 310 | | (15) Any permits issued to the association by governmental entities;273 |
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311 | 311 | | (16) Any and all warranties in effect;274 |
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312 | 312 | | H. B. 1308 |
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313 | 313 | | - 11 - 24 LC 48 1067 |
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314 | 314 | | (17) A roster of current homeowners and property owners and their addresses and275 |
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315 | 315 | | telephone numbers and section and lot numbers;276 |
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316 | 316 | | (18) Employment and service contracts in effect;277 |
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317 | 317 | | (19) All other contracts in effect to which the association is a party; and278 |
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318 | 318 | | (20) The financial records, including, but not limited to, financial statements of the279 |
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319 | 319 | | association and source documents from the incorporation of the association through the280 |
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320 | 320 | | date of turnover and transition. The records shall be audited by an independent certified281 |
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321 | 321 | | public accountant licensed by this state for the period from the incorporation of the282 |
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322 | 322 | | association or from the period covered by the last audit, if an audit has been performed283 |
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323 | 323 | | for each fiscal year since incorporation by an independent certified public accountant284 |
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324 | 324 | | licensed by this state. All financial statements shall be prepared in accordance with285 |
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325 | 325 | | generally accepted accounting principles and shall be audited in accordance with286 |
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326 | 326 | | generally accepted auditing standards. The certified public accountant performing the287 |
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327 | 327 | | audit shall examine to the extent necessary supporting documents and records, including288 |
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328 | 328 | | the cash disbursements and related paid invoices to determine if expenditures were for289 |
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329 | 329 | | association purposes and the billings, cash receipts, and related records of the association290 |
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330 | 330 | | to determine that the declarant was charged and paid the proper amounts of assessments. 291 |
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331 | 331 | | Audits required by this paragraph shall be paid for by the declarant, developer, or other292 |
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332 | 332 | | establishing entity.293 |
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333 | 333 | | 44-3-266.294 |
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334 | 334 | | (a) For a community proposed or represented to have amenities, the plat for the initial295 |
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335 | 335 | | phase of the development shall identify an area encompassing 25 percent of the proposed296 |
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336 | 336 | | buildable lots with installed and approved infrastructure sufficient to fully support the297 |
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337 | 337 | | houses or residential units proposed for construction in such area. Such area shall be298 |
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338 | 338 | | clearly delineated on the plat as 'not approved for construction or building permits.' Only299 |
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339 | 339 | | after the governing jurisdiction in which the property is located has issued the applicable300 |
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340 | 340 | | H. B. 1308 |
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341 | 341 | | - 12 - 24 LC 48 1067 |
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342 | 342 | | certificate of occupancy for those areas or amenities requiring such a certificate and has301 |
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343 | 343 | | otherwise approved those areas or amenities not requiring a certificate of occupancy, shall302 |
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344 | 344 | | the final plat for said area be approved by the governing jurisdiction. For large multiphase303 |
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345 | 345 | | projects, the governing jurisdiction shall have the discretion to shift the requirement to a304 |
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346 | 346 | | later phase that upon completion achieves no more than 50 percent of the planned fully305 |
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347 | 347 | | built out project.306 |
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348 | 348 | | (b)(1) Where a community includes amenities for which the community association will307 |
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349 | 349 | | assume maintenance and responsibility or where a community association shall be308 |
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350 | 350 | | established to govern all community association maintenance of property outside of all309 |
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351 | 351 | | dwelling units, the requirements in paragraphs (2) through (7) of this subsection, in310 |
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352 | 352 | | addition to any other requirements established by this article or the community311 |
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353 | 353 | | association's rules and regulations, shall be met.312 |
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354 | 354 | | (2) A prerequisite to the transfer of the declarant's, developer's, or other establishing313 |
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355 | 355 | | entity's responsibilities to the community association shall require that not more than 60314 |
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356 | 356 | | days prior to the date of turnover and transition the community association shall request,315 |
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357 | 357 | | and the governing jurisdiction with enforcement action of the property shall perform, an316 |
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358 | 358 | | inspection of the amenities to be maintained by the community association. The317 |
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359 | 359 | | inspection shall identify those areas that do not meet the governing jurisdiction standards.318 |
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360 | 360 | | (3) Prior to the inspection, the declarant, developer, or other establishing entity shall319 |
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361 | 361 | | have identified the amenities and shall prepare a form affidavit in the manner provided320 |
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362 | 362 | | in this Code section, which shall be executed by the declarant, developer, or other321 |
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363 | 363 | | establishing entity and design professionals certifying the sufficiency and workability of322 |
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364 | 364 | | the facilities set forth in the affidavit. The declarant, developer, or other establishing323 |
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365 | 365 | | entity shall provide a copy of the certification affidavit to the governing jurisdiction with324 |
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366 | 366 | | enforcement action over the property after signature of its officers and that of the325 |
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367 | 367 | | community association authorized representative or officer as is set forth in this Code326 |
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368 | 368 | | section. The community association shall not delay execution of the certification327 |
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369 | 369 | | H. B. 1308 |
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370 | 370 | | - 13 - 24 LC 48 1067 |
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371 | 371 | | affidavit except for good cause shown or may be liable for civil penalties provided in this328 |
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372 | 372 | | article.329 |
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373 | 373 | | (4) The declarant, developer, or other establishing entity shall correct and bear the cost330 |
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374 | 374 | | of any substandard conditions identified by the inspection by the governing jurisdiction331 |
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375 | 375 | | or any other source prior to the transfer of the infrastructure, common areas, and332 |
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376 | 376 | | amenities or control responsibilities from the declarant, developer, or other establishing333 |
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377 | 377 | | entity to the community association. In lieu of making the corrections, the declarant,334 |
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378 | 378 | | developer, or other establishing entity may provide a bond to the community association335 |
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379 | 379 | | in an amount sufficient to correct the identified deficiencies.336 |
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380 | 380 | | (5) At least 60 days prior to turnover and transition, the declarant, developer, or other337 |
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381 | 381 | | establishing entity shall provide the executed certification affidavit to the governing338 |
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382 | 382 | | jurisdiction with enforcement action over the property of the community association, with339 |
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383 | 383 | | a copy to the community association, which affidavit shall attest and certify that the items340 |
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384 | 384 | | to be turned over under this article are fully completed as designed or modified to provide341 |
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385 | 385 | | equivalent functional performance, or have deficiencies remaining to be completed as342 |
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386 | 386 | | specifically identified in the affidavit.343 |
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387 | 387 | | (6) Failure of the declarant, developer, or other establishing entity to provide the required344 |
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388 | 388 | | certification affidavit shall subject the declarant, developer, or other establishing entity345 |
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389 | 389 | | to the civil penalties provided under this article. Said affidavit shall be maintained by the346 |
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390 | 390 | | governing body as a public record and shall be subject to disclosure under Article 4 of347 |
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391 | 391 | | Chapter 18 of Title 50, relating to open records.348 |
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392 | 392 | | (7) The declarant, developer, or other establishing entity shall provide the certification349 |
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393 | 393 | | affidavit to the local governing body with enforcement action over the property prior to350 |
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394 | 394 | | the turnover and transition, which shall provide as follows:351 |
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395 | 395 | | 'This certification affidavit is for (name of community as reflected in the community352 |
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396 | 396 | | plat last filed at the time of the first property sale of said community to a member or353 |
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397 | 397 | | future member of the community association who was not a declarant, developer, or354 |
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398 | 398 | | H. B. 1308 |
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399 | 399 | | - 14 - 24 LC 48 1067 |
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400 | 400 | | other establishing entity). I certify that the below listed items as recorded in the plat355 |
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401 | 401 | | last filed at the time of inception are fully completed as designed or modified to provide356 |
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402 | 402 | | equivalent functional performance or have deficiencies remaining to be completed as357 |
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403 | 403 | | specifically identified below.358 |
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404 | 404 | | (a) With respect to common areas of the community for which the community359 |
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405 | 405 | | association or other entity (other than individual residential property owners) is360 |
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406 | 406 | | responsible to assume maintenance responsibility:361 |
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407 | 407 | | (1) All recreational areas are complete and operational;362 |
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408 | 408 | | (2) Swimming pools and facilities requiring Board of Health approval have been363 |
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409 | 409 | | certified acceptable by the Health Department;364 |
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410 | 410 | | (3) Swimming pools have a fence with a self-closing and positive latching gate. 365 |
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411 | 411 | | The fence is constructed outside of the deck area and has an unclimbable space;366 |
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412 | 412 | | (4) All storm-water management facilities, including, but not limited to, piping, as367 |
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413 | 413 | | well as nonstructural system components, including, but not limited to, detention368 |
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414 | 414 | | ponds, swales, and ditches are constructed and operating as intended with all369 |
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415 | 415 | | construction sediment and debris removed, and no observable or known370 |
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416 | 416 | | maintenance requirements existing; and371 |
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417 | 417 | | (5) Sidewalks in the public and community association owned areas are complete372 |
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418 | 418 | | and constructed in accordance with standards;373 |
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419 | 419 | | (b) With respect to a clubhouse or common area buildings and structures:374 |
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420 | 420 | | (1) All permanent street numbers are displayed;375 |
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421 | 421 | | (2) All proposed disability parking and accessibility is complete;376 |
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422 | 422 | | (3) All handrails and guardrails are installed properly;377 |
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423 | 423 | | (4) All exit signs and emergency lights are installed and working properly;378 |
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424 | 424 | | (5) All planned and required fire extinguishers are mounted;379 |
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425 | 425 | | (6) All required fire alarms and sprinkler systems are installed per code and are380 |
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426 | 426 | | functioning properly; and381 |
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427 | 427 | | H. B. 1308 |
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428 | 428 | | - 15 - 24 LC 48 1067 |
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429 | 429 | | (7) A written warranty has been provided;382 |
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430 | 430 | | (c) With respect to common or private property subject to restrictions to avoid383 |
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431 | 431 | | negative impact to the public or environment:384 |
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432 | 432 | | (1) All areas with slopes of 40 percent or greater subject to the steep slope385 |
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433 | 433 | | ordinance have been defined by a properly recorded easement;386 |
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434 | 434 | | (2) All buffers, setbacks, and easements have been properly recorded and are387 |
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435 | 435 | | clearly identifiable; and388 |
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436 | 436 | | (3) All temporary erosion control measures have been removed;389 |
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437 | 437 | | (d) With respect to other items:390 |
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438 | 438 | | (1) All conditions of zoning have been complied with; and391 |
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439 | 439 | | (2) All construction and other areas subject to erosion have been stabilized with392 |
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440 | 440 | | appropriate vegetation or other acceptable measures; and393 |
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441 | 441 | | (e) Deficiencies that currently exist and that will require action before use or394 |
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442 | 442 | | maintenance at routine level may be achieved are as follows: (list and describe such395 |
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443 | 443 | | deficiencies)'396 |
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444 | 444 | | 44-3-267.397 |
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445 | 445 | | Prior to the declarant, developer, or other establishing entity relinquishing control of the398 |
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446 | 446 | | community association pursuant to this article or other law, actions taken by members of399 |
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447 | 447 | | the board of directors designated by the declarant, developer, or other establishing entity400 |
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448 | 448 | | are considered actions taken by the declarant, developer, or other establishing entity and401 |
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449 | 449 | | the declarant, developer, or other establishing entity is responsible to the community402 |
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450 | 450 | | association and its members for all such actions.403 |
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451 | 451 | | 44-3-268.404 |
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452 | 452 | | If, during the period prior to the time that the declarant, developer, or other establishing405 |
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453 | 453 | | entity relinquishes control of the community association pursuant to this article or other406 |
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454 | 454 | | H. B. 1308 |
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455 | 455 | | - 16 - 24 LC 48 1067 |
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456 | 456 | | law, any provision of this article or any rule promulgated thereunder is violated by the407 |
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457 | 457 | | community association, then the declarant, developer, or other establishing entity shall be408 |
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458 | 458 | | responsible for such violation and subject to civil penalties as provided for in this article.409 |
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459 | 459 | | 44-3-269.410 |
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460 | 460 | | Any community association shall have a cause of action in the superior court of the county411 |
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461 | 461 | | of the community association. Civil penalties for violations of this article by a declarant,412 |
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462 | 462 | | developer, or other establishing entity shall be not less than $500.00 and up to $5,000.00413 |
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463 | 463 | | per violation at the discretion of the court, in addition to any other remedies available at414 |
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464 | 464 | | law to the community association. A community association may recover the cost of415 |
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465 | 465 | | litigation, including, but not limited to, court costs and reasonable attorney's fees, from a416 |
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466 | 466 | | declarant, developer, or other establishing entity for the enforcement of this article."417 |
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467 | 467 | | SECTION 2.418 |
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468 | 468 | | This Act shall become effective on January 1, 2025, and shall apply to all property included419 |
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469 | 469 | | on a plat first filed on or after such date.420 |
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470 | 470 | | SECTION 3.421 |
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471 | 471 | | All laws and parts of laws in conflict with this Act are repealed.422 |
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472 | 472 | | H. B. 1308 |
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473 | 473 | | - 17 - |
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