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| 4 | 4 | | |
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| 5 | 5 | | 2025 -- H 5330 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001071 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO PROPERTY -- CONDOMINIUM LAW |
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| 16 | 16 | | Introduced By: Representatives Fellela, Costantino, Serpa, Hull, and J. Lombardi |
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| 17 | 17 | | Date Introduced: February 07, 2025 |
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| 18 | 18 | | Referred To: House Corporations |
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| 19 | 19 | | |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Sections 34-36.1-1.02, 34-36.1-1.03. and 34-36.1-3.08 of the General Laws 1 |
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| 23 | 23 | | in Chapter 34-36.1 entitled "Condominium Law" are hereby amended to read as follows: 2 |
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| 24 | 24 | | 34-36.1-1.02. Applicability. 3 |
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| 25 | 25 | | (a)(1) This chapter applies to all condominiums created within this state after July 1, 1982, 4 |
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| 26 | 26 | | except that any condominium created within this state prior to July 1, 1982, may voluntarily accept 5 |
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| 27 | 27 | | the provisions of this chapter in lieu of the provisions under which it was originally organized. 6 |
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| 28 | 28 | | Acceptance shall be evidenced by an agreement in writing executed by and in behalf of the 7 |
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| 29 | 29 | | condominium association and by all of the owners of all of the individual condominium units within 8 |
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| 30 | 30 | | the condominium, in which agreement it is clearly stated that they all accept the provisions of this 9 |
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| 31 | 31 | | chapter in lieu of those in the statute under which the condominium was organized and wish to be 10 |
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| 32 | 32 | | governed in the future by the provisions of this chapter. The agreement shall be recorded in the 11 |
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| 33 | 33 | | land evidence records of each and every town or city where all or any part of the land in the 12 |
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| 34 | 34 | | condominium concerned may be located and shall become effective when first so recorded. The 13 |
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| 35 | 35 | | acceptance shall only apply to the governance of the condominium concerned as to all matters 14 |
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| 36 | 36 | | which are prospective or executory in nature; and nothing herein shall be deemed to abrogate, 15 |
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| 37 | 37 | | amend, limit, effect, or impair the continued effectiveness, legality, or validity of all actions 16 |
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| 38 | 38 | | lawfully taken by or in behalf of the condominium prior to the effective date of the acceptance, 17 |
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| 39 | 39 | | including, but without limitation, the condominium declaration and all amendments thereto, the by-18 |
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| 40 | 40 | | laws of the condominium and/or of its association, all deeds, mortgages, leases, and any further 19 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC001071 - Page 2 of 8 |
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| 44 | 44 | | documents affecting the titles or rights of unit owners, or of the condominium or the prior lawful 1 |
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| 45 | 45 | | acts or deeds of any kind, of the condominium association, its officers, directors, or members. 2 |
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| 46 | 46 | | (2) Sections 34-36.1-1.03(26) (special assessments), 34-36.1-1.05 (separate titles and 3 |
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| 47 | 47 | | taxation), 34-36.1-1.06 (applicability of local ordinances, regulations, and building codes), 34-4 |
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| 48 | 48 | | 36.1-1.07 (eminent domain), 34-36.1-2.03 (construction and validity of declaration and bylaws), 5 |
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| 49 | 49 | | 34-36.1-2.04 (description of units), 34-36.1-3.08 (meetings), 34-36.1-3.02(a)(1) — (6) and (11) — 6 |
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| 50 | 50 | | (17) (powers of unit owners’ association), 34-36.1-3.06(c) — (d) (bylaws), 34-36.1-3.11 (tort and 7 |
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| 51 | 51 | | contract liability), 34-36.1-3.16 (lien for assessments), 34-36.1-3.18 (association records), 34-36.1-8 |
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| 52 | 52 | | 4.09 (resale of units), and 34-36.1-4.17 (effect of violation on rights of action; attorney’s fees), § 9 |
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| 53 | 53 | | 34-36.1-3.20 (enforcement of declaration, bylaws and rules), and 34-36.1-1.03 (definitions), to the 10 |
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| 54 | 54 | | extent necessary in construing any of those sections, apply to all condominiums created in this state 11 |
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| 55 | 55 | | before July 1, 1982; but those sections apply only with respect to events and circumstances 12 |
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| 56 | 56 | | occurring after July 1, 1982, and do not invalidate existing provisions of the declaration, bylaws, 13 |
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| 57 | 57 | | plats, or plans of those condominiums. 14 |
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| 58 | 58 | | (3) A condominium created as an additional phase by amendment of a condominium 15 |
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| 59 | 59 | | created prior to July 1, 1982, if the original declaration contemplated the amendment, shall be 16 |
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| 60 | 60 | | deemed to be a condominium created prior to July 1, 1982; provided, however, the provisions of 17 |
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| 61 | 61 | | subdivision (a)(2) shall apply as defined therein. 18 |
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| 62 | 62 | | (4) Section 34-36.1-3.21 (foreclosure of condominium lien) applies, with respect to all 19 |
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| 63 | 63 | | condominiums created in this state prior to June 19, 1991, only with respect to events and 20 |
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| 64 | 64 | | circumstances occurring after June 18, 1991, does not invalidate existing provisions of the 21 |
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| 65 | 65 | | declarations, bylaws, plats, or plans of those condominiums, and applies in all respects to all 22 |
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| 66 | 66 | | condominiums created in this state after June 18, 1991. 23 |
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| 67 | 67 | | (b) The provisions of the Condominium Ownership Act, chapter 36 of this title, do not 24 |
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| 68 | 68 | | apply to condominiums created after July 1, 1982, and do not invalidate any amendment to the 25 |
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| 69 | 69 | | declaration, bylaws, plats, and plans of any condominium created before July 1, 1982, if the 26 |
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| 70 | 70 | | amendment would be permitted by this chapter. The amendment must be adopted in conformity 27 |
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| 71 | 71 | | with the procedures and requirements specified by those instruments and by chapter 36 of this title. 28 |
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| 72 | 72 | | If the amendment grants to any person any rights, powers, or privileges permitted by this chapter, 29 |
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| 73 | 73 | | all correlative obligations, liabilities, and restrictions in this chapter also apply to that person. 30 |
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| 74 | 74 | | (c) This chapter does not apply to condominiums or units located outside this state, but the 31 |
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| 75 | 75 | | public offering statement provisions (§§ 34-36.1-4.02 — 34-36.1-4.07) apply to all contracts for 32 |
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| 76 | 76 | | the disposition thereof signed in this state by any party unless exempt under § 34-36.1-4.01(b). 33 |
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| 77 | 77 | | 34-36.1-1.03. Definitions. 34 |
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| 78 | 78 | | |
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| 79 | 79 | | |
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| 80 | 80 | | LC001071 - Page 3 of 8 |
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| 81 | 81 | | In the declaration and bylaws, unless specifically provided otherwise or the context 1 |
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| 82 | 82 | | otherwise requires, and in this chapter: 2 |
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| 83 | 83 | | (1) “Affiliate of a declarant” means any person who controls, is controlled by, or is under 3 |
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| 84 | 84 | | common control with a declarant. 4 |
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| 85 | 85 | | (i) A person “controls” a declarant if the person: 5 |
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| 86 | 86 | | (A) Is a general partner, officer, director, or employer of the declarant, 6 |
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| 87 | 87 | | (B) Directly or indirectly or acting in concert with one or more other persons, or through 7 |
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| 88 | 88 | | one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, 8 |
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| 89 | 89 | | more than twenty percent (20%) of the voting interest in the declarant, 9 |
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| 90 | 90 | | (C) Controls in any manner the election of a majority of the directors of the declarant, or 10 |
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| 91 | 91 | | (D) Has contributed more than twenty percent (20%) of the capital of the declarant. 11 |
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| 92 | 92 | | (ii) A person “is controlled by” a declarant if the declarant: 12 |
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| 93 | 93 | | (A) Is a general partner, officer, director, or employer of the person, 13 |
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| 94 | 94 | | (B) Directly or indirectly or acting in concert with one or more other persons, or through 14 |
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| 95 | 95 | | one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, 15 |
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| 96 | 96 | | more than twenty percent (20%) of the voting interest in the person, 16 |
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| 97 | 97 | | (C) Controls in any manner the election of a majority of the directors of the person, or 17 |
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| 98 | 98 | | (D) Has contributed more than twenty percent (20%) of the capital of the person. 18 |
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| 99 | 99 | | (iii) Control does not exist if the powers described in this subdivision are held solely as 19 |
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| 100 | 100 | | security for an obligation and are not exercised. 20 |
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| 101 | 101 | | (2) “Allocated interests” means the undivided interest in the common elements, the 21 |
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| 102 | 102 | | common expense liability, and votes in the association allocated to each unit. 22 |
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| 103 | 103 | | (3) “Association” or “unit owners’ association” means the unit owners’ association 23 |
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| 104 | 104 | | organized under § 34-36.1-3.01. 24 |
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| 105 | 105 | | (4) “Common elements” means all portions of a condominium other than the units. 25 |
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| 106 | 106 | | (5) “Common expenses” means expenditures made by or financial liabilities of the 26 |
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| 107 | 107 | | association, together with any allocations to reserves. 27 |
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| 108 | 108 | | (6) “Common expense liability” means the liability for common expenses allocated to each 28 |
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| 109 | 109 | | unit pursuant to § 34-36.1-2.07. 29 |
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| 110 | 110 | | (7)(i) “Condominium” means real estate, portions of which are designated for separate 30 |
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| 111 | 111 | | ownership and the remainder of which is designated for common ownership solely by the owners 31 |
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| 112 | 112 | | of those portions. Real estate is not a condominium unless the undivided interests in the common 32 |
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| 113 | 113 | | elements are vested in the unit owners. 33 |
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| 114 | 114 | | (ii) Provided that each unit owner has a vested, undivided interest in the common elements 34 |
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| 115 | 115 | | |
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| 116 | 116 | | |
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| 117 | 117 | | LC001071 - Page 4 of 8 |
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| 118 | 118 | | greater that 0.0 percent, no minimum percentage interest in the common elements is otherwise 1 |
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| 119 | 119 | | required by this chapter. 2 |
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| 120 | 120 | | (8) “Conversion building” means a building that at any time before creation of the 3 |
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| 121 | 121 | | condominium was occupied wholly or partially by persons other than purchasers and persons who 4 |
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| 122 | 122 | | occupy with the consent of purchasers. 5 |
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| 123 | 123 | | (9) “Declarant” means any person or group of persons acting in concert who: 6 |
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| 124 | 124 | | (i) As part of a common promotional plan, offers to dispose of his, her or its interest in a 7 |
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| 125 | 125 | | unit not previously disposed of; or 8 |
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| 126 | 126 | | (ii) Reserves or succeeds to any special declarant right. 9 |
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| 127 | 127 | | (10) “Declaration” means any instruments, however denominated, that create a 10 |
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| 128 | 128 | | condominium, and any amendments to those instruments. 11 |
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| 129 | 129 | | (11) “Development rights” means any right or combination of rights reserved by a declarant 12 |
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| 130 | 130 | | in the declaration to: 13 |
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| 131 | 131 | | (A) Add real estate to a condominium, 14 |
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| 132 | 132 | | (B) Create units, common elements, or limited common elements within a condominium, 15 |
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| 133 | 133 | | (C) Subdivide units or convert units into common elements, or 16 |
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| 134 | 134 | | (D) Withdraw real estate from a condominium. 17 |
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| 135 | 135 | | (12) “Person with a disability” means any person who is unable to engage in any substantial 18 |
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| 136 | 136 | | gainful activity by reason of any medically determinable physical or mental impairment which can 19 |
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| 137 | 137 | | be expected to result in death or has lasted or can be expected to last for a continuous period of not 20 |
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| 138 | 138 | | less than twelve (12) months or any person having an impairment of mobility or vision which is 21 |
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| 139 | 139 | | expected to be of at least twelve (12) months duration, and is a substantial impediment to his or her 22 |
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| 140 | 140 | | ability to live independently. 23 |
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| 141 | 141 | | (13) “Dispose” or “disposition” means a voluntary transfer to a purchaser of any legal or 24 |
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| 142 | 142 | | equitable interest in a unit, but does not include the transfer or release of a security interest. 25 |
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| 143 | 143 | | (14) “Executive board” means the body, regardless of name, designated in the declaration 26 |
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| 144 | 144 | | to act on behalf of the association. 27 |
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| 145 | 145 | | (15) [Deleted by P.L. 1999, ch. 83, § 80, and P.L. 1999, ch. 130, § 80 which enacted 28 |
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| 146 | 146 | | identical amendments to this section.] 29 |
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| 147 | 147 | | (16) “Identifying number” means a symbol or address that identifies only one unit in a 30 |
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| 148 | 148 | | condominium. 31 |
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| 149 | 149 | | (17) “Land only units” shall mean units designated as land only units on the plats and plans 32 |
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| 150 | 150 | | which units may be comprised entirely or partially of unimproved real property and the air space 33 |
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| 151 | 151 | | above the real property. The boundaries of a land only unit are to be described pursuant to § 34-34 |
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| 152 | 152 | | |
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| 153 | 153 | | |
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| 154 | 154 | | LC001071 - Page 5 of 8 |
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| 155 | 155 | | 36.1-2.05(a)(5). Land only units may, but need not, contain a physical structure. The declaration 1 |
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| 156 | 156 | | may provide for the conversion of land only units to other types of units and/or common elements 2 |
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| 157 | 157 | | provided the conversion shall be effective only upon the recording of an amendment to the 3 |
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| 158 | 158 | | declaration which amendment will include new plats and plans identifying any portion of the land 4 |
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| 159 | 159 | | only unit converted to another type of unit and/or common element. 5 |
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| 160 | 160 | | (18) “Leasehold condominium” means a condominium in which all or a portion of the real 6 |
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| 161 | 161 | | estate is subject to a lease the expiration or termination of which will terminate the condominium 7 |
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| 162 | 162 | | or reduce its size. 8 |
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| 163 | 163 | | (19) “Limited common element” means a portion of the common elements allocated by the 9 |
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| 164 | 164 | | declaration or by operation of § 34-36.1-2.02(2) or (4) for the exclusive use of one or more but 10 |
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| 165 | 165 | | fewer than all of the units. 11 |
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| 166 | 166 | | (20) “Master association” means an organization described in § 34-36.1-2.20, whether or 12 |
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| 167 | 167 | | not it is also an association described in § 34-36.1-3.01. 13 |
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| 168 | 168 | | (21) “Offering” means any advertisement, inducement, solicitation, or attempt to 14 |
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| 169 | 169 | | encourage any person to acquire any interest in a unit, other than as security for an obligation. An 15 |
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| 170 | 170 | | advertisement in a newspaper or other periodical of general circulation, or in any broadcast medium 16 |
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| 171 | 171 | | to the general public, of a condominium not located in this state, is not an offering if the 17 |
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| 172 | 172 | | advertisement states that an offering may be made only in compliance with the law of the 18 |
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| 173 | 173 | | jurisdiction in which the condominium is located. 19 |
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| 174 | 174 | | (22) “Person” means a natural person, corporation, business trust, estate, trust, partnership, 20 |
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| 175 | 175 | | association, joint venture, government, governmental subdivision or agency, or other legal or 21 |
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| 176 | 176 | | commercial entity. (In the case of a land trust, however, “person” means the beneficiary of the trust 22 |
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| 177 | 177 | | rather than the trust or the trustee.) 23 |
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| 178 | 178 | | (23) “Purchaser” means any person, other than a declarant or a person in the business of 24 |
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| 179 | 179 | | selling real estate for his or her own account, who by means of a voluntary transfer acquires a legal 25 |
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| 180 | 180 | | or equitable interest in a unit other than: 26 |
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| 181 | 181 | | (i) A leasehold interest including renewal options of less than twenty (20) years, or 27 |
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| 182 | 182 | | (ii) As security for an obligation. 28 |
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| 183 | 183 | | (24) “Real estate” means any leasehold or other estate or interest in, over, or under land, 29 |
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| 184 | 184 | | including structures, fixtures, and other improvements and interests which by custom, usage, or law 30 |
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| 185 | 185 | | pass with a conveyance of land though not described in the contract of sale or instrument of 31 |
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| 186 | 186 | | conveyance. “Real estate” includes parcels with or without upper or lower boundaries, and spaces 32 |
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| 187 | 187 | | that may be filled with air or water. 33 |
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| 188 | 188 | | (25) “Residential purposes” means use for dwelling or recreational purposes, or both. 34 |
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| 189 | 189 | | |
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| 190 | 190 | | |
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| 191 | 191 | | LC001071 - Page 6 of 8 |
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| 192 | 192 | | (26) “Special assessment” means an assessment that is not part of the association budget, 1 |
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| 193 | 193 | | (§ 34-36.1-3.03), 2 |
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| 194 | 194 | | (26)(27) “Special declarant rights” means rights reserved for the benefit of a declarant to: 3 |
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| 195 | 195 | | (i) Complete improvements indicated on plats and plans filed with the declaration, (§ 34-4 |
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| 196 | 196 | | 36.1-2.09), 5 |
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| 197 | 197 | | (ii) To exercise any development right, (§ 34-36.1-2.10), 6 |
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| 198 | 198 | | (iii) To maintain sales offices, management offices, signs advertising the condominium, 7 |
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| 199 | 199 | | and models, (§ 34-36.1-2.15), 8 |
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| 200 | 200 | | (iv) To use easements through the common elements for the purpose of making 9 |
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| 201 | 201 | | improvements within the condominium or within real estate which may be added to the 10 |
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| 202 | 202 | | condominium, (§ 34-36.1-2.16), 11 |
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| 203 | 203 | | (v) To make the condominium part of a larger condominium or a planned community, (§ 12 |
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| 204 | 204 | | 34-36.1-2.21), 13 |
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| 205 | 205 | | (vi) To make the condominium subject to a master association, (§ 34-36.1-2.20), 14 |
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| 206 | 206 | | (vii) Or to appoint or remove any officer of the association or any master association or 15 |
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| 207 | 207 | | any executive board member during any period of declarant control, (§ 34-36.1-3.03(d)). 16 |
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| 208 | 208 | | (27)(28) “Time share” means a right to occupy a unit or any of several units during five (5) 17 |
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| 209 | 209 | | or more separated time periods over a period of at least five (5) years, including renewal options, 18 |
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| 210 | 210 | | whether or not coupled with an estate or interest in a condominium or a specified portion thereof. 19 |
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| 211 | 211 | | (28)(29) “Unit” means a physical portion of the condominium designated for separate 20 |
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| 212 | 212 | | ownership or occupancy, the boundaries of which are described pursuant to § 34-36.1-2.05(a)(5). 21 |
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| 213 | 213 | | (29)(30) “Unit owner” means a declarant or other person who owns a unit, or a lessee of a 22 |
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| 214 | 214 | | unit in a leasehold condominium whose lease expires simultaneously with any lease, the expiration 23 |
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| 215 | 215 | | or termination of which will remove the unit from the condominium, but does not include a person 24 |
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| 216 | 216 | | having an interest in a unit solely as security for an obligation. 25 |
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| 217 | 217 | | 34-36.1-3.08. Meetings. 26 |
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| 218 | 218 | | (a) A meeting of the association must be held at least once each year. Special meetings of 27 |
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| 219 | 219 | | the association may be called by the president, a majority of the executive board or by unit owners 28 |
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| 220 | 220 | | having twenty percent (20%), or any lower percentage specified in the bylaws, of the votes in the 29 |
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| 221 | 221 | | association. Not less than ten (10) nor more than sixty (60) days in advance of any meeting, the 30 |
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| 222 | 222 | | secretary or other officer specified in the bylaws shall cause notice to be hand delivered or sent 31 |
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| 223 | 223 | | prepaid by United States mail to the mailing address of each unit or to any other mailing address 32 |
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| 224 | 224 | | designated in writing by the unit owner. The notice of any meeting must state the time and place of 33 |
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| 225 | 225 | | the meeting and the items on the agenda, including the general nature of any proposed amendment 34 |
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| 226 | 226 | | |
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| 227 | 227 | | |
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| 228 | 228 | | LC001071 - Page 7 of 8 |
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| 229 | 229 | | to the declaration or bylaws, any budget changes, and any proposal to remove a director or officer. 1 |
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| 230 | 230 | | (b) Unless authorized in the declaration or bylaws pursuant to subsection (c) of this section, 2 |
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| 231 | 231 | | all association meetings shall take place in a physical location located in the city or town or, if not 3 |
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| 232 | 232 | | possible, in the county where the condominium is located. 4 |
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| 233 | 233 | | (c) In the alternative, if authorized in the declaration or bylaws, all association meetings 5 |
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| 234 | 234 | | need not take place in a physical location but rather may take place entirely remotely as provided 6 |
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| 235 | 235 | | in subsection (d) of this section. 7 |
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| 236 | 236 | | (d) If authorized in the declaration or bylaws, unit owners shall have the right to be counted 8 |
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| 237 | 237 | | in order to establish a quorum and to communicate with all other unit owners participating and to 9 |
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| 238 | 238 | | vote at association meetings using systems that support image, voice and data transfer over digital 10 |
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| 239 | 239 | | networks or telephone circuits using formats determined by the executive board with notice thereof 11 |
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| 240 | 240 | | to the unit owners. 12 |
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| 241 | 241 | | SECTION 2. This act shall take effect upon passage. 13 |
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| 243 | 243 | | LC001071 |
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| 246 | 246 | | |
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| 247 | 247 | | LC001071 - Page 8 of 8 |
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| 248 | 248 | | EXPLANATION |
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| 249 | 249 | | BY THE LEGISLATIVE COUNCIL |
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| 250 | 250 | | OF |
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| 251 | 251 | | A N A C T |
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| 252 | 252 | | RELATING TO PROPERTY -- CONDOMINIUM LAW |
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| 253 | 253 | | *** |
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| 254 | 254 | | This act would provide that amendments to §§ 34-36.1-1.03 and 34-36.1-3.08 are 1 |
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| 255 | 255 | | applicable to condominiums created before July 1, 1982, would provide a definition for the term 2 |
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| 256 | 256 | | “special assessment” and would allow, if authorized in declarations or bylaws, unit owners to 3 |
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| 257 | 257 | | participate in association meetings remotely. 4 |
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| 258 | 258 | | This act would take effect upon passage. 5 |
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| 259 | 259 | | ======== |
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| 260 | 260 | | LC001071 |
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