Defines deed restricted unit. This act would further limit the increase in annual condominium fees for a deed restricted unit to five percent (5%) of the proceeding year's monthly common expenses.
Impact
If enacted, H7698 would significantly influence how condominium associations manage fees associated with deed restricted units. By capping increases in monthly common expenses, the bill aims to provide a degree of financial protection for residents who may otherwise be vulnerable to steep rises in housing costs. This measure could help stabilize communities and assist those living in affordable housing, thereby supporting broader efforts to address housing affordability in the state.
Summary
House Bill H7698 aims to amend several sections of Rhode Island's property and condominium laws. The bill specifically introduces a definition for 'deed restricted unit,' which refers to units that qualify as low- and moderate-income housing. Additionally, it seeks to limit the increase of annual condominium fees for these deed restricted units to a maximum of five percent of the previous year's monthly common expenses. This proposed regulation emerges from an effort to make housing costs more manageable for lower-income residents living in deed restricted units.
Contention
Some notable points of contention may arise among condominium associations and individual owners regarding the feasibility and implications of these fee limitations. Critics could argue that restricting fee increases might hinder the ability of associations to adequately fund essential maintenance and improvements, potentially leading to declines in property conditions. Conversely, proponents of the bill may stress the importance of affordable housing and the need to protect residents from excessive financial burdens.