Rhode Island Senate Bill S0724

Rhode Island 2025 Regular Session

• Introduced: 3/7/25
• Refer: 3/7/25

Caption

Restricts increases in monthly common expenses and limit special assessments to cover unforeseen costs not included in condo association’s approved annual budget for common expenses in associations where the minority of the units are deed-restricted units

Impact

The amendments proposed in S0724 aim to have a significant impact on how condominium associations budget and manage their finances. By imposing limitations on expense increases and special assessments, the bill seeks to ensure that homeowners, especially those in deed-restricted units, are not unexpectedly faced with steep financial contributions that could arise from regular budget adjustments or sudden maintenance needs. This change is likely to foster a climate of stability and transparency, encouraging community trust in association management processes.

Summary

Bill S0724 introduces amendments to the condominium regulations under Chapter 34-36.1 of the General Laws, targeting the governance of condominium associations particularly where a minority of the units are deed-restricted. The key provision restricts increases in monthly common expenses to a maximum of 5% over the previous year's figures and places limitations on special assessments when unforeseen expenses arise. These changes are intended to enhance financial predictability and protect owners of deed-restricted units from disproportionate financial burdens in budget approvals and expense allocation.

Contention

While the bill has merits aimed at protecting consumers and stabilizing financial expectations in condominium associations, it might also meet resistance from some stakeholders who argue that it can limit the flexibility of associations to respond to genuine unforeseen financial demands. There could be concerns raised about how this might inadvertently suppress maintenance or improvements that require immediate funding beyond set limits, which could affect the overall quality and management of condominium properties in the long run.