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1 New Paragraph; Condominium Act; Budgets and Special Assessments; Arrearages. Amend RSA 356-B:40-c by inserting after paragraph II the following new paragraph:
II-a.(a) The board of directors may establish a special account in the budget to cover additional operating costs as a result of unit owner arrearages.
(b) If the board of directors establishes a budget that includes any costs or reserves that are intended to cover arrearages, that amount shall be considered a special assessment, and subject to use restrictions as described in this section. The board of directors may keep a balance in this account for the purpose of paying costs associated with arrearages or legal expenses incurred as a result of arrearages owed to the association.
(c) All arrearages charged on behalf of a unit owner shall be kept as a separate line item in the budget. As payments are collected, such payments shall be repaid to the association and deposited into the special account. The board of directors shall credit any repayment by an owner in arrears, along with any fines, late fees, or assessments, to the special account.
(d) Any cost associated with collecting the amounts in arrears, including attorneys fees, shall be charged to the owner that is in arrears.
2 Effective Date. This act shall take effect 60 days after its passage.
Text to be added highlighted in green.
1 New Paragraph; Condominium Act; Budgets and Special Assessments; Arrearages. Amend RSA 356-B:40-c by inserting after paragraph II the following new paragraph:
II-a.(a) The board of directors may establish a special account in the budget to cover additional operating costs as a result of unit owner arrearages.
(b) If the board of directors establishes a budget that includes any costs or reserves that are intended to cover arrearages, that amount shall be considered a special assessment, and subject to use restrictions as described in this section. The board of directors may keep a balance in this account for the purpose of paying costs associated with arrearages or legal expenses incurred as a result of arrearages owed to the association.
(c) All arrearages charged on behalf of a unit owner shall be kept as a separate line item in the budget. As payments are collected, such payments shall be repaid to the association and deposited into the special account. The board of directors shall credit any repayment by an owner in arrears, along with any fines, late fees, or assessments, to the special account.
(d) Any cost associated with collecting the amounts in arrears, including attorneys fees, shall be charged to the owner that is in arrears.
2 Effective Date. This act shall take effect 60 days after its passage.