Rhode Island 2023 Regular Session

Rhode Island House Bill H6024 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 6024
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7	7	LC001126
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO PROPERTY -- CONDOMINIUM LAW
16	16	Introduced By: Representative Patricia A. Serpa
17	17	Date Introduced: March 01, 2023
18	18	Referred To: House Corporations
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20	20
21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Sections 34-36.1-1.02 and 34-36.1-2.19 of the General Laws in Chapter 34-1
23	23	36.1 entitled "Condominium Law" are hereby amended to read as follows: 2
24	24	34-36.1-1.02. Applicability. 3
25	25	(a)(1) This chapter applies to all condominiums created within this state after July 1, 1982, 4
26	26	except that any condominium created within this state prior to July 1, 1982, may voluntarily accept 5
27	27	the provisions of this chapter in lieu of the provisions under which it was originally organized. 6
28	28	Acceptance shall be evidenced by an agreement in writing executed by and in behalf of the 7
29	29	condominium association and by all of the owners of all of the individual condominium units within 8
30	30	the condominium, in which agreement it is clearly stated that they all accept the provisions of this 9
31	31	chapter in lieu of those in the statute under which the condominium was organized and wish to be 10
32	32	governed in the future by the provisions of this chapter. The agreement shall be recorded in the 11
33	33	land evidence records of each and every town or city where all or any part of the land in the 12
34	34	condominium concerned may be located and shall become effective when first so recorded. The 13
35	35	acceptance shall only apply to the governance of the condominium concerned as to all matters 14
36	36	which are prospective or executory in nature; and nothing herein shall be deemed to abrogate, 15
37	37	amend, limit, effect, or impair the continued effectiveness, legality, or validity of all actions 16
38	38	lawfully taken by or in behalf of the condominium prior to the effective date of the acceptance, 17
39	39	including, but without limitation, the condominium declaration and all amendments thereto, the by-18
40	40	laws of the condominium and/or of its association, all deeds, mortgages, leases and any further 19
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43	43	LC001126 - Page 2 of 4
44	44	documents affecting the titles or rights of unit owners, or of the condominium or the prior lawful 1
45	45	acts or deeds of any kind, of the condominium association, its officers, directors, or members. 2
46	46	(2) Sections 34-36.1-1.05 (separate titles and taxation), 34-36.1-1.06 (applicability of local 3
47	47	ordinances, regulations, and building codes), 34-36.1-1.07 (eminent domain), 34-36.1-2.03 4
48	48	(construction and validity of declaration and bylaws), 34-36.1-2.04 (description of units), 34-36.1-5
49	49	2.19 (rights of secured lenders), 34-36.1-3.02(a)(1) — (6) and (11) — (17) (powers of unit owners’ 6
50	50	association), 34-36.1-3.11 (tort and contract liability), 34-36.1-3.16 (lien for assessments), 34-36.1-7
51	51	3.18 (association records), 34-36.1-4.09 (resale of units), and 34-36.1-4.17 (effect of violation on 8
52	52	rights of action; attorney’s fees), § 34-36.1-3.20 (enforcement of declaration, bylaws and rules), 9
53	53	and 34-36.1-1.03 (definitions), to the extent necessary in construing any of those sections, apply to 10
54	54	all condominiums created in this state before July 1, 1982; but those sections apply only with 11
55	55	respect to events and circumstances occurring after July 1, 1982 and do not invalidate existing 12
56	56	provisions of the declaration, bylaws, plats, or plans of those condominiums. 13
57	57	(3) A condominium created as an additional phase by amendment of a condominium 14
58	58	created prior to July 1, 1982, if the original declaration contemplated the amendment, shall be 15
59	59	deemed to be a condominium created prior to July 1, 1982; provided, however, the provisions of 16
60	60	subdivision (a)(2) shall apply as defined therein. 17
61	61	(4) Section 34-36.1-3.21 (foreclosure of condominium lien) applies, with respect to all 18
62	62	condominiums created in this state prior to June 19, 1991, only with respect to events and 19
63	63	circumstances occurring after June 18, 1991, does not invalidate existing provisions of the 20
64	64	declarations, bylaws, plats, or plans of those condominiums, and applies in all respects to all 21
65	65	condominiums created in this state after June 18, 1991. 22
66	66	(b) The provisions of the Condominium Ownership Act, chapter 36 of this title, do not 23
67	67	apply to condominiums created after July 1, 1982 and do not invalidate any amendment to the 24
68	68	declaration, bylaws, plats, and plans of any condominium created before July 1, 1982 if the 25
69	69	amendment would be permitted by this chapter. The amendment must be adopted in conformity 26
70	70	with the procedures and requirements specified by those instruments and by chapter 36 of this title. 27
71	71	If the amendment grants to any person any rights, powers, or privileges permitted by this chapter, 28
72	72	all correlative obligations, liabilities, and restrictions in this chapter also apply to that person. 29
73	73	(c) This chapter does not apply to condominiums or units located outside this state, but the 30
74	74	public offering statement provisions (§§ 34-36.1-4.02 — 34-36.1-4.07) apply to all contracts for 31
75	75	the disposition thereof signed in this state by any party unless exempt under § 34-36.1-4.01(b). 32
76	76	34-36.1-2.19. Rights of secured lenders. 33
77	77	(a) The declaration may require that all or a specified number or percentage of the 34
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81	81	mortgagees or beneficiaries of deeds of trust encumbering the units approve specified actions of 1
82	82	the unit owners or the association as a condition to the effectiveness of those actions, but no 2
83	83	requirement for approval may operate to: 3
84	84	(1) Deny or delegate control over the general administrative affairs of the association by 4
85	85	the unit owners or the executive board, or 5
86	86	(2) Prevent the association or the executive board from commencing, intervening in, or 6
87	87	settling any litigation or proceedings, or receiving and distributing any insurance proceeds except 7
88	88	pursuant to § 34-36.1-3.13. 8
89	89	(b) When approval of any actions of the unit owners or the association is required of all or 9
90	90	a specified number or percentage of the unit mortgagees by this chapter or the declaration or bylaws 10
91	91	as a condition to the effectiveness of those actions, written requests for approval shall be mailed by 11
92	92	United States Postal Service regular mail and certified mail return receipt requested to unit 12
93	93	mortgagees at the mailing addresses referenced on mortgage documents recorded in the land 13
94	94	evidence records. If a unit mortgagee fails to provide a written denial of approval to the party 14
95	95	requesting approval within sixty (60) days after the mailing of the request, the unit mortgagee shall 15
96	96	be deemed to have approved the request. All written requests for approval to unit mortgagees shall 16
97	97	reference and contain a copy of this section. 17
98	98	SECTION 2. This act shall take effect upon passage. 18
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105	105	EXPLANATION
106	106	BY THE LEGISLATIVE COUNCIL
107	107	OF
108	108	A N A C T
109	109	RELATING TO PROPERTY -- CONDOMINIUM LAW
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111	111	This act would provide that the "rights of secured lenders" provision from § 34-36.1-2.19 1
112	112	be applicable to condominiums created before July 1, 1982 and would create a process for 2
113	113	condominium associations to notify and obtain approval from unit mortgage holders for certain 3
114	114	association actions. 4
115	115	This act would take effect upon passage. 5
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