| 1 | 1 | | |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | 2025 -- H 5586 |
|---|
| 6 | 6 | | ======== |
|---|
| 7 | 7 | | LC001473 |
|---|
| 8 | 8 | | ======== |
|---|
| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
|---|
| 10 | 10 | | IN GENERAL ASSEMBLY |
|---|
| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
|---|
| 12 | 12 | | ____________ |
|---|
| 13 | 13 | | |
|---|
| 14 | 14 | | A N A C T |
|---|
| 15 | 15 | | RELATING TO PROPERTY -- CONDOMINIUM LAW |
|---|
| 16 | 16 | | Introduced By: Representatives Voas, Casey, Casimiro, McEntee, Alzate, Solomon, |
|---|
| 17 | 17 | | Finkelman, O'Brien, Kazarian, and Serpa |
|---|
| 18 | 18 | | Date Introduced: February 26, 2025 |
|---|
| 19 | 19 | | Referred To: House Corporations |
|---|
| 20 | 20 | | |
|---|
| 21 | 21 | | |
|---|
| 22 | 22 | | It is enacted by the General Assembly as follows: |
|---|
| 23 | 23 | | SECTION 1. Sections 34-36.1-1.2 and 34-36.1-2.19 of the General Laws in Chapter 34-1 |
|---|
| 24 | 24 | | 36.1 entitled "Condominium Law" are hereby amended to read as follows: 2 |
|---|
| 25 | 25 | | 34-36.1-1.02. Applicability. 3 |
|---|
| 26 | 26 | | (a)(1) This chapter applies to all condominiums created within this state after July 1, 1982, 4 |
|---|
| 27 | 27 | | except that any condominium created within this state prior to July 1, 1982, may voluntarily accept 5 |
|---|
| 28 | 28 | | the provisions of this chapter in lieu of the provisions under which it was originally organized. 6 |
|---|
| 29 | 29 | | Acceptance shall be evidenced by an agreement in writing executed by and in behalf of the 7 |
|---|
| 30 | 30 | | condominium association and by all of the owners of all of the individual condominium units within 8 |
|---|
| 31 | 31 | | the condominium, in which agreement it is clearly stated that they all accept the provisions of this 9 |
|---|
| 32 | 32 | | chapter in lieu of those in the statute under which the condominium was organized and wish to be 10 |
|---|
| 33 | 33 | | governed in the future by the provisions of this chapter. The agreement shall be recorded in the 11 |
|---|
| 34 | 34 | | land evidence records of each and every town or city where all or any part of the land in the 12 |
|---|
| 35 | 35 | | condominium concerned may be located and shall become effective when first so recorded. The 13 |
|---|
| 36 | 36 | | acceptance shall only apply to the governance of the condominium concerned as to all matters 14 |
|---|
| 37 | 37 | | which are prospective or executory in nature; and nothing herein shall be deemed to abrogate, 15 |
|---|
| 38 | 38 | | amend, limit, effect, or impair the continued effectiveness, legality, or validity of all actions 16 |
|---|
| 39 | 39 | | lawfully taken by or in behalf of the condominium prior to the effective date of the acceptance, 17 |
|---|
| 40 | 40 | | including, but without limitation, the condominium declaration and all amendments thereto, the by-18 |
|---|
| 41 | 41 | | laws of the condominium and/or of its association, all deeds, mortgages, leases, and any further 19 |
|---|
| 42 | 42 | | |
|---|
| 43 | 43 | | |
|---|
| 44 | 44 | | LC001473 - Page 2 of 4 |
|---|
| 45 | 45 | | documents affecting the titles or rights of unit owners, or of the condominium or the prior lawful 1 |
|---|
| 46 | 46 | | acts or deeds of any kind, of the condominium association, its officers, directors, or members. 2 |
|---|
| 47 | 47 | | (2) Sections 34-36.1-1.05 (separate titles and taxation), 34-36.1-1.06 (applicability of local 3 |
|---|
| 48 | 48 | | ordinances, regulations, and building codes), 34-36.1-1.07 (eminent domain), 34-36.1-2.03 4 |
|---|
| 49 | 49 | | (construction and validity of declaration and bylaws), 34-36.1-2.04 (description of units), 34-36.1-5 |
|---|
| 50 | 50 | | 2.19(b) (mortgage approval), 34-36.1-3.02(a)(1) — (6) and (11) — (17) (powers of unit owners’ 6 |
|---|
| 51 | 51 | | association), 34-36.1-3.06(c) — (d) (bylaws), 34-36.1-3.11 (tort and contract liability), 34-36.1-7 |
|---|
| 52 | 52 | | 3.16 (lien for assessments), 34-36.1-3.18 (association records), 34-36.1-4.09 (resale of units), and 8 |
|---|
| 53 | 53 | | 34-36.1-4.17 (effect of violation on rights of action; attorney’s fees), § 34-36.1-3.20 (enforcement 9 |
|---|
| 54 | 54 | | of declaration, bylaws and rules), and 34-36.1-1.03 (definitions), to the extent necessary in 10 |
|---|
| 55 | 55 | | construing any of those sections, apply to all condominiums created in this state before July 1, 11 |
|---|
| 56 | 56 | | 1982; but those sections apply only with respect to events and circumstances occurring after July 12 |
|---|
| 57 | 57 | | 1, 1982, and do not invalidate existing provisions of the declaration, bylaws, plats, or plans of those 13 |
|---|
| 58 | 58 | | condominiums. 14 |
|---|
| 59 | 59 | | (3) A condominium created as an additional phase by amendment of a condominium 15 |
|---|
| 60 | 60 | | created prior to July 1, 1982, if the original declaration contemplated the amendment, shall be 16 |
|---|
| 61 | 61 | | deemed to be a condominium created prior to July 1, 1982; provided, however, the provisions of 17 |
|---|
| 62 | 62 | | subdivision (a)(2) shall apply as defined therein. 18 |
|---|
| 63 | 63 | | (4) Section 34-36.1-3.21 (foreclosure of condominium lien) applies, with respect to all 19 |
|---|
| 64 | 64 | | condominiums created in this state prior to June 19, 1991, only with respect to events and 20 |
|---|
| 65 | 65 | | circumstances occurring after June 18, 1991, does not invalidate existing provisions of the 21 |
|---|
| 66 | 66 | | declarations, bylaws, plats, or plans of those condominiums, and applies in all respects to all 22 |
|---|
| 67 | 67 | | condominiums created in this state after June 18, 1991. 23 |
|---|
| 68 | 68 | | (b) The provisions of the Condominium Ownership Act, chapter 36 of this title, do not 24 |
|---|
| 69 | 69 | | apply to condominiums created after July 1, 1982, and do not invalidate any amendment to the 25 |
|---|
| 70 | 70 | | declaration, bylaws, plats, and plans of any condominium created before July 1, 1982, if the 26 |
|---|
| 71 | 71 | | amendment would be permitted by this chapter. The amendment must be adopted in conformity 27 |
|---|
| 72 | 72 | | with the procedures and requirements specified by those instruments and by chapter 36 of this title. 28 |
|---|
| 73 | 73 | | If the amendment grants to any person any rights, powers, or privileges permitted by this chapter, 29 |
|---|
| 74 | 74 | | all correlative obligations, liabilities, and restrictions in this chapter also apply to that person. 30 |
|---|
| 75 | 75 | | (c) This chapter does not apply to condominiums or units located outside this state, but the 31 |
|---|
| 76 | 76 | | public offering statement provisions (§§ 34-36.1-4.02 — 34-36.1-4.07) apply to all contracts for 32 |
|---|
| 77 | 77 | | the disposition thereof signed in this state by any party unless exempt under § 34-36.1-4.01(b). 33 |
|---|
| 78 | 78 | | 34-36.1-2.19. Rights of secured lenders. 34 |
|---|
| 79 | 79 | | |
|---|
| 80 | 80 | | |
|---|
| 81 | 81 | | LC001473 - Page 3 of 4 |
|---|
| 82 | 82 | | (a) The declaration may require that all or a specified number or percentage of the 1 |
|---|
| 83 | 83 | | mortgagees or beneficiaries of deeds of trust encumbering the units approve specified actions of 2 |
|---|
| 84 | 84 | | the unit owners or the association as a condition to the effectiveness of those actions, but no 3 |
|---|
| 85 | 85 | | requirement for approval may operate to: 4 |
|---|
| 86 | 86 | | (1) Deny or delegate control over the general administrative affairs of the association by 5 |
|---|
| 87 | 87 | | the unit owners or the executive board, or 6 |
|---|
| 88 | 88 | | (2) Prevent the association or the executive board from commencing, intervening in, or 7 |
|---|
| 89 | 89 | | settling any litigation or proceedings, or receiving and distributing any insurance proceeds except 8 |
|---|
| 90 | 90 | | pursuant to § 34-36.1-3.13. 9 |
|---|
| 91 | 91 | | (b) When approval of any actions of the unit owners or the association is required of all or 10 |
|---|
| 92 | 92 | | a specified number or percentage of the unit mortgagees by this chapter or the declaration or bylaws 11 |
|---|
| 93 | 93 | | as a condition of the effectiveness of those actions, written requests for approval shall be mailed by 12 |
|---|
| 94 | 94 | | United States Postal Service, regular mail and certified mail, return receipt requested, to unit 13 |
|---|
| 95 | 95 | | mortgagees at the mailing addresses referenced on mortgage documents recorded in the land 14 |
|---|
| 96 | 96 | | evidence records. If a unit mortgagee fails to provide a written denial of approval to the party 15 |
|---|
| 97 | 97 | | requesting approval within sixty-five (65) days after the mailing of the request, the unit mortgagee 16 |
|---|
| 98 | 98 | | shall be deemed to have approved the request. All written requests for approval to unit mortgagees 17 |
|---|
| 99 | 99 | | shall reference this section. 18 |
|---|
| 100 | 100 | | SECTION 2. This act shall take effect upon passage. 19 |
|---|
| 101 | 101 | | ======== |
|---|
| 102 | 102 | | LC001473 |
|---|
| 103 | 103 | | ======== |
|---|
| 104 | 104 | | |
|---|
| 105 | 105 | | |
|---|
| 106 | 106 | | LC001473 - Page 4 of 4 |
|---|
| 107 | 107 | | EXPLANATION |
|---|
| 108 | 108 | | BY THE LEGISLATIVE COUNCIL |
|---|
| 109 | 109 | | OF |
|---|
| 110 | 110 | | A N A C T |
|---|
| 111 | 111 | | RELATING TO PROPERTY -- CONDOMINIUM LAW |
|---|
| 112 | 112 | | *** |
|---|
| 113 | 113 | | This act would create a process for condominium associations to give notice to and obtain 1 |
|---|
| 114 | 114 | | approval from unit mortgage holders for certain association actions, to wit, by mailing via regular 2 |
|---|
| 115 | 115 | | and certified mail to the unit mortgagees written request for approval, and if no response is received 3 |
|---|
| 116 | 116 | | within sixty-five (65) days, the request shall be deemed approved. 4 |
|---|
| 117 | 117 | | This act would take effect upon passage. 5 |
|---|
| 118 | 118 | | ======== |
|---|
| 119 | 119 | | LC001473 |
|---|
| 120 | 120 | | ======== |
|---|