HLS 17RS-922 ORIGINAL
2017 Regular Session
HOUSE BILL NO. 469
BY REPRESENTATIVES FALCONER AND STOKES
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CONDOMINIUMS: Provides relative to the Louisiana Condominium Act
1 AN ACT
2To amend and reenact R.S. 9:1121.103(3) and (5), 1123.112(A)(introductory paragraph) and
3 (1), (B), (C)(introductory paragraph) and (1), and (E) and to enact R.S.
4 9:1123.102(17), relative to the Louisiana Condominium Act; to provide for
5 definitions; to provide for powers of unit owner associations; provides for procedure;
6 provides for insurance requirements; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 9:1121.103(3) and (5), 1123.112(A)(introductory paragraph) and (1),
9(B), (C)(introductory paragraph) and (1), and (E) are hereby amended and reenacted and R.S.
109:1123.102(17) is hereby enacted to read as follows:
11 §1121.103. Definitions
12 As used in this Part:
13 * * *
14 (3)(a) "Unit" means a part of the condominium property subject to individual
15 ownership that is the responsibility of the unit owner. A unit may include air space
16 only. A unit includes such accessory rights and obligations as are stipulated in the
17 condominium declaration.
18 (b) "Unit" shall also include all of the following personal property and
19 replacement of all of the following when located within the unit or its limited
20 common elements and when serving only the unit:
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1 (i) Wall, floor, and ceiling coverings, electrical fixtures, appliances, water
2 heaters, water filters, built-in cabinets, and built-in countertops.
3 (ii) Window treatments including drapes, blinds, hardware, and similar
4 window treatment components.
5 (iii) Materials installed subsequent to the original construction and purchase
6 of the unit by a unit owner that are located behind walls, under floors, or over
7 ceilings, regardless of whether they may be tied in or connected to common element
8 property or equipment.
9 * * *
10 (5)(a) "Common elements" means the portion of the condominium property
11 that is the responsibility of the condominium association and not neither a part of the
12 individual units nor a part of the limited common elements of a unit.
13 (b) "Common elements" shall also include but not be limited to all of the
14 following movable or immovable property and replacement of all of the following
15 when located outside the boundaries of any unit, under its floors, or over its ceiling
16 and when serving the condominium building in whole or in part but not for the
17 benefit of a single unit:
18 (i) Walls, floors, ceilings, ceiling coverings, electrical fixtures, appliances,
19 water heaters, water filters, built-in cabinets, and built-in countertops.
20 (ii) Window treatments including drapes, blinds, hardware, and similar
21 window treatment components.
22 * * *
23 §1123.102. Powers of unit owners' association
24 Subject to the provisions of the declaration, the association, even if
25 unincorporated, may:
26 * * *
27 (17) Assess fines or pursue any other remedy available by law for the failure
28 of a unit owner or his lessee to obtain property and liability insurance as required by
29 R.S. 9:1123.112.
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1 * * *
2 §1123.112. Insurance; requirements; procedure; penalties
3 A. Commencing not later than the time of the first conveyance of a unit to
4 a person other than a declarant, the association shall maintain, to the extent
5 reasonably available, all of the following:
6 (1) Property insurance on the common elements and units, exclusive of
7 improvements and betterments installed in units by unit owners, insuring against all
8 risks of direct physical loss commonly insured against. The total amount of
9 insurance after application of any deductibles shall be not less than eighty percent
10 of the actual cash value of the insured property, exclusive of land, excavations,
11 foundations, and other items normally excluded from property policies; and.
12 * * *
13 B. If the insurance described in Subsection A is not maintained, the
14 association promptly shall cause notice of that fact to be hand-delivered or sent
15 prepaid by United States mail to all unit owners. The declaration may require the
16 association to carry any other insurance, and the association in any event may carry
17 any other insurance it deems appropriate to protect the association or the unit owners.
18 C. Insurance policies carried pursuant to Subsection A must shall provide
19 that:
20 (1) Each unit owner is an insured person under the policy with respect to
21 liability arising out of his ownership of an individual interest in the common
22 elements or membership in the association. Neither a unit owner nor his lessee or
23 occupant shall be required to be an insured person covered by the policy maintained
24 by the association for any liability arising out of use of the unit or the condition
25 thereof.
26 * * *
27 E.(1) An insurance policy issued to the association does not prevent a unit
28 owner from obtaining insurance for his own benefit A unit owner shall be required
29 to carry both of the following:
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HB NO. 469
1 (a) A property insurance policy with limits equal to at least eighty percent
2 of the actual cash value of the unit.
3 (b) A general liability insurance policy with limits not less than one hundred
4 thousand dollars.
5 (2) The cost of repairing or replacing a unit is the responsibility of the unit
6 owner.
7 (3)(a) The condominium association board or its hired manager may request,
8 in writing, proof of any property and general liability insurance policy from any unit
9 owner but not more than three times per calendar year.
10 (b) The unit owner shall have ten days from the date of receipt to respond to
11 the request and shall include a copy of the policy, binder, certificate, or any other
12 relevant document deemed satisfactory by the board.
13 (c) The board may assess any reasonable fines, file liens, initiate any court
14 proceedings necessary for foreclosure of a unit, or pursue any other remedy available
15 by law when a unit owner fails to respond to a written request for the information
16 required pursuant to the provisions of this Paragraph.
17 (d) The board shall provide to a unit owner reasonable notice and an
18 opportunity to be heard prior to the imposition of any of the penalties described in
19 Subparagraph (c) of this Paragraph.
20 (4)(a) In the event that a unit owner desires to lease his unit, the lessee shall
21 be insured for his contents and liability pursuant to a renter's insurance policy. The
22 liability limits for the policy shall not be less than one hundred thousand dollars.
23 (b) The board may prohibit any lease agreement when the board has not been
24 provided proof of the renter's insurance policy prior to completion of the lease
25 agreement.
26 (c) The board or its hired manager may request, in writing, proof of any
27 renter's insurance policy from any lessee but not more than three times per calendar
28 year.
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1 (d) The lessee shall have ten days from the date of receipt to respond to the
2 request and shall include a copy of the policy, binder, certificate, or any other
3 relevant document deemed satisfactory by the board.
4 (e) Failure of the lessee to produce evidence of the renter's insurance policy
5 shall subject the unit owner to the penalties described in Paragraph (3) of this
6 Subsection.
7 * * *
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 469 Original 2017 Regular Session Falconer
Abstract: Amends certain provisions of the La. Condominium Act to change insurance
requirements imposed on condominium associations, unit owners, and lessees.
Proposed law makes technical changes.
Present law provides for definitions. Proposed law amends the definitions of the terms
"unit" and "common elements". Proposed law provides that any of the property described
in proposed law as included in the term "unit" is the responsibility of the unit owner.
Proposed law provides that any of the property described in proposed law as included in the
term "common elements" is the responsibility of the condominium association.
Proposed law provides that "unit" shall include all of the following personal property and
replacement of all of the following when located within the unit or its limited common
elements and when serving only the unit:
(1)Wall, floor, and ceiling coverings, electrical fixtures, appliances, water heaters, water
filters, built-in cabinets, and built-in countertops.
(2)Window treatments including drapes, blinds, hardware, and similar window
treatment components.
(3)Materials installed subsequent to the original construction and purchase of the unit
by a unit owner that are located behind walls, under floors, or over ceilings,
regardless of whether they may be tied in or connected to common element property
or equipment.
Proposed law provides that "common elements" shall include but not be limited to all of the
following movable or immovable property and replacement of all of the following when
located outside the boundaries of any unit, under its floors, or over its ceiling and when
serving the condominium building in whole or in part but not for the benefit of a single unit:
(1)Walls, floors, ceilings, ceiling coverings, electrical fixtures, appliances, water
heaters, water filters, built-in cabinets, and built-in countertops.
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(2)Window treatments including drapes, blinds, hardware, and similar window
treatment components.
Present law enumerates a list of powers held unit owners' association. Proposed law adds
to the list of enumerated powers allowing the association to impose assessments for the
failure of a unit owner or his lessee to obtain insurance as required by proposed law.
Present law requires, in pertinent part, that commencing not later than the time of the first
conveyance of a unit to a person other than a declarant, the association shall maintain, to the
extent reasonably available property insurance on the common elements and units, exclusive
of improvements and betterments installed in units by unit owners, insuring against all risks
of direct physical loss commonly insured against. Proposed law removes reference to "and
units" by which the association is no longer required to maintain property insurance on units;
rather, they will be required to maintain property insurance on the common elements,
exclusive of improvements and betterments installed in units by unit owners, insuring
against all risks of direct physical loss commonly insured against.
Present law provides, in pertinent part, that "the association in any event may carry any other
insurance it deems appropriate to protect the association or the unit owners." Proposed law
removes the reference to "or the unit owners" by which the association may now carry any
other insurance it deems appropriate to protect the association only.
Present law requires that insurance policies carried pursuant to present law must provide that
each unit owner is an insured person under the policy with respect to liability arising out of
his ownership of an individual interest in the common elements or membership in the
association. Proposed law clarifies that neither a unit owner nor his lessee or occupant shall
be required to be an insured person covered by the policy maintained by the association for
any liability arising out of use of the unit or the condition thereof.
Present law states that an insurance policy issued to the association does not prevent a unit
owner from obtaining insurance for his own benefit. Proposed law deletes present law.
Proposed law requires that a unit owner be required to carry a property insurance policy with
limits equal to at least 80% of the actual cash value of the unit and a general liability
insurance policy with limits not less than $100,000.
Proposed law clarifies that the cost of repairing or replacing the unit is the responsibility of
the unit owner.
Proposed law authorizes the condominium association board or its hired manager to request,
in writing, proof of any property and general liability insurance policy from any unit owner
but not more than 3 times per calendar year.
Proposed law provides that the unit owner shall have 10 days from the date of receipt to
respond to the request and shall include a copy of the policy, binder, certificate, or any other
relevant document deemed satisfactory by the board.
Proposed law authorizes the board to assess any reasonable fines, file liens, initiate any court
proceedings necessary for foreclosure of a unit, or to pursue any other remedy available by
law when a unit owner fails to respond to a written request for the information required
pursuant to the provisions proposed law.
Proposed law requires the board to provide to a unit owner reasonable notice and an
opportunity to be heard prior to the imposition of any of the penalties described in proposed
law.
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HB NO. 469
Proposed law requires that, in the event that a unit owner desires to lease his unit, the lessee
be insured for his contents and liability pursuant to a renter's insurance policy. The liability
limits for the policy shall not be less than $100,000.
Proposed law authorizes the board to prohibit any lease agreement when the board has not
been provided proof of the renter's insurance policy prior to completion of the lease
agreement.
Proposed law authorizes the board or its hired manager to request, in writing, proof of any
renter's insurance policy from any lessee but not more than 3 times per calendar year.
Proposed law requires the board to give the lessee 10 days from the date of receipt to
respond to the request and requires the lessee to include a copy of the policy, binder,
certificate, or any other relevant document deemed satisfactory by the board.
Proposed law provides that failure of the lessee to produce evidence of a satisfactory renter's
insurance policy shall subject the unit owner to the penalties described in proposed law.
(Amends R.S. 9:1121.103(3) and (5), 1123.112(A)(intro. para.) and (1), (B), (C)(intro. para.)
and (1), and (E); Adds R.S. 9:1123.102(17))
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