HLS 24RS-113 REENGROSSED
2024 Regular Session
HOUSE BILL NO. 440
BY REPRESENTATIVES BERAULT, DICKERSON, EDMONSTON, EGAN, AND
WYBLE
PROPERTY/IMMOVABLE: Provides relative to association documents of planned
communities
1 AN ACT
2To amend and reenact R.S. 9:3198(A)(3), relative to homeowners associations, property
3 owners associations, condominium owners associations and other planned
4 communities; to provide for the disclosure of association documents; and to provide
5 for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 9:3198(A)(3) is hereby amended and reenacted to read as follows:
8 ยง3198. Duties of the seller; delivery of property disclosure document; termination
9 of real estate contract; information contained in document and inaccuracies;
10 required disclosure of information relative to homeowners' associations and
11 restrictive covenants; liability of seller
12 A.
13 * * *
14 (3) The statement shall inform the purchaser that the information included
15 in the disclosure statement relative to of any homeowners' association, property
16 owners' association, condominium association, or any other planned community is
17 summary in nature and that restrictive covenants and building restrictions are a
18 matter of public record all recorded association documents shall be provided to the
19 purchaser no later than at the time of closing. The statement shall also include
20 notification to the purchaser that homeowners' association governing documents may
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-113 REENGROSSED
HB NO. 440
1 be requested from the seller and how to obtain documents regarding any restrictive
2 covenants and building restrictions governing the property to be purchased.
3 * * *
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 440 Reengrossed 2024 Regular Session Berault
Abstract: Provides relative to the community documents of homeowner, condominium,
and property owner associations and other planned community associations.
Present law (R.S. 9:3198(A)(3)) requires in the property disclosure statement that the
purchaser is informed of any homeowners association and how to obtain the association
documents.
Proposed law (R.S. 9:3198(A)(3)) requires in the property disclosure statement that the
purchaser be made aware of any homeowners, property, or condominium association, and
requires that all association documents be provided to the purchaser no later than at the time
of closing.
(Amends R.S. 9:3198(A)(3))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Civil Law and
Procedure to the original bill:
1. Make technical changes.
2. Remove the requirement that homeowners associations, property owners
associations, and condominium associations conduct an annual accounting of the
books and provide a report outlining the fees and expenses for the previous fiscal
year.
3. Remove the requirement that every homeowners association, property owners
association, and condominium association with dues exceeding $500,000
annually shall have an audit of the books conducts every three years by a third-
party auditor in addition to the annual accounting.
4. Add "planned community" to the list of associations that the purchaser of a
home is made aware of in the property disclosure statement in order to provide
the purchaser the association documents prior to closing.
The House Floor Amendments to the engrossed bill:
1. Remove all provisions of proposed law other than the requirement that the
property disclosure statement inform the purchaser of any planned community
and provide the association documents to the purchaser no later than at the time
of closing.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.