Revision: Nov. 6, 2017, 2:10 p.m.
HB 1521 - AS INTRODUCED
2018 SESSION
18-2365
10/06
HOUSE BILL 1521
AN ACT relative to the adoption of budgets and special assessments by condominium associations.
SPONSORS: Rep. Webb, Rock. 6; Rep. LeBrun, Hills. 32; Rep. Pantelakos, Rock. 25; Rep. Tripp, Rock. 6; Sen. Reagan, Dist 17
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill modifies the requirements for the number of unit owners of a condominium to be present for a vote to reject the budget, and for a board of directors vote for a special assessment in an emergency situation.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2365
10/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to the adoption of budgets and special assessments by condominium associations.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Condominium Act; Adoption of Budgets and Special Assessments. Amend RSA 356-B:40-c to read as follows:
356-B:40-c Adoption of Budgets and Special Assessments.
I. The board of directors, at least annually, shall adopt a proposed budget for the unit owners' association for consideration by the unit owners. Not later than 30 days after adoption of a proposed budget, the board of directors shall provide to all the unit owners a summary of the budget, including any reserves, and a statement of the basis on which any reserves are calculated and funded. Simultaneously, the board shall set a date not less than 10 days or more than 60 days after providing the summary for a meeting of the unit owners to consider ratification of the budget. Unless at that meeting with at least [2/3] 1/2 of all unit owners present for the meeting, or any larger number specified in the declaration or bylaws, the unit owners reject the budget by a majority vote of those present, the budget is ratified[, whether or not a quorum is present]. If a proposed budget is rejected, the budget last ratified by the unit owners continues until the unit owners ratify a subsequent budget.
II. The board of directors, at any time, may propose a special assessment. Except as otherwise provided in paragraph III, the assessment is effective only if the board of directors follows the procedures for ratification of a budget described in paragraph I and the unit owners do not reject the proposed assessment.
III. If the board of directors determines by a 2/3 recorded roll call vote that a special assessment is necessary to respond to an emergency:
(a) The special assessment becomes effective immediately in accordance with the terms of the vote.
(b) Notice of the special assessment shall be provided promptly to all unit owners.
(c) The board of directors may spend the funds paid on account of the special assessment only for the purposes described in the vote.
IV. For purposes of this section, an "emergency" means a situation that requires immediate action by the board of directors, that if not attended to will cause damage to either units, common areas, or personal property of residents, or will injure residents. Anything that does not need immediate attention shall not be considered an emergency and a special meeting shall be required with all unit owners notified before a special assessment may be ratified.
2 Effective Date. This act shall take effect 60 days after its passage.