Creates process for condominium associations to give notice to and obtain approval from unit mortgage holders for certain association actions by mailing a written request for approval to the unit mortgagees via regular and certified mail.
The bill would significantly impact the governance of condominiums created after July 1, 1982, making it clear that associations can proceed with specific actions unless they receive a deniable response from mortgagees. This is likely to enhance the operational efficiency of condominium management and may reduce delays associated with obtaining necessary approvals. However, it also suggests a shift in the power dynamics within condominium governance, potentially prioritizing the expediency of decisions over comprehensive oversight from mortgagees.
House Bill H5586 amends the existing Condominium Law in Rhode Island, specifically addressing the procedure for condominium associations to obtain approval from unit mortgage holders for certain actions. The bill stipulates that for any specified actions requiring approval from unit mortgagees, the association must send a written request via both regular and certified mail. If a mortgagee fails to respond within sixty-five days, the request will be considered approved. This change aims to streamline the approval process while ensuring that mortgage holders are adequately notified about significant decisions of the condominium associations.
Notably, there may be contention regarding the perceived balance of power between condominium associations and mortgage holders. While the approval process aims to simplify decision-making for associations, concerns could arise among mortgagees regarding their ability to influence critical decisions that may affect the financial viability and governance of the properties they have vested interest in. The provision that non-responses are deemed as approval could lead to disputes over what constitutes adequate communication and decision-making transparency between the parties involved.