Senate File 518 - Introduced SENATE FILE 518 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SF 44) (COMPANION TO HF 432 BY COMMITTEE ON COMMERCE) A BILL FOR An Act relating to access by certain entities to specific 1 records and documents maintained by a unit owners 2 association. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1053SV (2) 90 ko/ns
S.F. 518 Section 1. NEW SECTION . 499C.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. Bylaws means the instruments, however denominated, that 4 contain the procedures for conducting the affairs of a unit 5 owners association or an executive board regardless of the form 6 in which the association is organized, including any amendments 7 to such instruments. 8 2. Common element means: 9 a. For a cooperative under chapter 499A or a horizontal 10 property regime under chapter 499B, all portions of the common 11 interest community other than the units. 12 b. For a planned community, any real estate within the 13 planned community which is owned or leased by the unit owners 14 association, other than a unit. 15 c. For all common interest communities, any other interests 16 in real estate for the benefit of unit owners identified in the 17 declaration. 18 3. a. Common interest community means real estate 19 described in a declaration with respect to which a person, 20 by virtue of the persons ownership of a unit, is obligated 21 to pay for a share of real estate taxes, insurance premiums, 22 maintenance, or improvement of, or services or other expenses 23 related to, common elements, other units, or other real estate 24 described in the declaration. Common interest community 25 includes a planned community, a cooperative under chapter 499A, 26 and a horizontal property regime under chapter 499B. 27 b. Common interest community does not include: 28 (1) A covenant that requires the owners of separate parcels 29 of real estate to share costs or other obligations related to a 30 wall, driveway, well, or other similar structure, unless all 31 such owners consent in writing to the creation of a common 32 interest community. 33 (2) Real estate described in paragraph a if all units are 34 owned by a single owner. 35 -1- LSB 1053SV (2) 90 ko/ns 1/ 5
S.F. 518 (3) Real estate described in paragraph a that is managed 1 by the original developer of the real estate. 2 4. Declarant means a person or group of persons who, 3 as the record title owner of real estate, by a declaration, 4 creates a common interest community. 5 5. Declaration means the instrument, however denominated, 6 that creates a common interest community, including any 7 amendments to the instrument. 8 6. Executive board means the body, regardless of name, 9 designated in the declaration or bylaws to act on behalf of a 10 unit owners association. 11 7. Planned community means a common interest community 12 that is not solely a cooperative under chapter 499A or solely 13 a horizontal property regime under chapter 499B, and includes 14 property owner or homeowner associations. A cooperative under 15 chapter 499A or a horizontal property regime under chapter 16 499B, however, may be part of a planned community. 17 8. Rule means a policy, guideline, restriction, procedure, 18 or regulation, however denominated, which is not set forth in 19 the declaration or bylaws. 20 9. Unit means a portion of a common interest community 21 designated for separate ownership or occupancy or as otherwise 22 defined in the statute under which the common interest 23 community is organized, including but not limited to an 24 apartment as defined in section 499B.2. 25 10. Unit owner means a declarant or other person that owns 26 a unit, but does not include a person having an interest in a 27 unit solely as security for an obligation. In a horizontal 28 property regime under chapter 499B or a planned community, 29 the declarant is the owner of a unit. In a cooperative under 30 chapter 499A, the declarant is the owner of any unit to 31 which an interest has been allocated until that unit has been 32 conveyed to another person. 33 11. Unit owners association means an association, 34 regardless of name, organized as a for-profit or nonprofit 35 -2- LSB 1053SV (2) 90 ko/ns 2/ 5
S.F. 518 corporation, trust, limited liability company, partnership, 1 unincorporated association, or any other form of organization 2 authorized by the laws of this state, the membership of 3 which consists solely of unit owners except following 4 termination of the common interest community, at which time the 5 association shall consist of all former unit owners entitled 6 to distributions of proceeds or their heirs, successors, or 7 assigns. 8 Sec. 2. NEW SECTION . 499C.2 Records and documents 9 access. 10 1. A unit owners association, a unit owners associations 11 designee, or a unit owners associations management company 12 shall make all of the following records and documents available 13 to a unit owner or the unit owners authorized agent within 14 ten business days of a request by the unit owner or the unit 15 owners authorized agent: 16 a. The organizational documents for the common interest 17 community, including all amendments. 18 b. The unit owners associations bylaws, including all 19 amendments. 20 c. The rules of the common interest community, including all 21 amendments. 22 d. The minutes of the most recently held unit owners 23 meeting, including any financial reports. The minutes must 24 indicate the date, time, and place of the meeting, the names of 25 all persons present at the meeting, each action taken at the 26 meeting, and the results of each vote taken at the meeting. 27 e. The minutes of the most recently held executive board 28 meeting, including any financial reports. The minutes must 29 indicate the date, time, and place of the meeting, the names of 30 all persons present at the meeting, each action taken at the 31 meeting, and the results of each vote taken at the meeting. 32 2. A unit owners association, a unit owners associations 33 designee, or a unit owners associations management company may 34 make the records and documents under subsection 1 available to 35 -3- LSB 1053SV (2) 90 ko/ns 3/ 5
S.F. 518 a unit owner or the unit owners authorized agent via any of 1 the following methods: 2 a. Paper copy. 3 b. Electronically to an electronic mail address provided by 4 the unit owner or the unit owners authorized agent. 5 c. By posting the records and documents to an internet site 6 maintained by the unit owners association, the unit owners 7 associations designee, or the unit owners associations 8 management company to which the unit owner or the unit owners 9 authorized agent has reasonable access. 10 3. A unit owners association, a unit owners associations 11 designee, or a unit owners associations management company may 12 charge a reasonable fee for all records and documents provided 13 under this section. The fee shall not exceed the estimated 14 cost of production or reproduction of the records or documents. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanations substance by the members of the general assembly. 18 This bill relates to access by certain entities to specific 19 records and documents maintained by a unit owners association. 20 Under the bill, a unit owners association is an organization 21 of unit owners in a common interest community, including a 22 planned community, a cooperative under Code chapter 499A, or a 23 horizontal property regime under Code chapter 499B. Common 24 interest community is defined in the bill and exclusions from 25 the definition are detailed in the bill. 26 A unit owners association, a unit owners associations 27 designee, or a unit owners associations management company 28 (association) must make certain records and documents, as 29 detailed in the bill, available to a unit owner or the unit 30 owners authorized agent within 10 business days of a request 31 by the unit owner or the unit owners authorized agent. 32 An association may make the records and documents available 33 to the unit owner or the unit owners authorized agent via 34 paper copy, electronically to an electronic mail address 35 -4- LSB 1053SV (2) 90 ko/ns 4/ 5
S.F. 518 provided by the unit owner or the unit owners authorized 1 agent, or by posting the records and documents to an internet 2 site maintained by the association to which the unit owner or 3 the unit owners authorized agent has reasonable access. 4 An association may charge a reasonable fee for records and 5 documents provided under the bill. The fee shall not exceed 6 the estimated cost of production or reproduction of the records 7 or documents. 8 -5- LSB 1053SV (2) 90 ko/ns 5/ 5