State legislative sessions are coming to an end. Legislators in at least 25 states have gone home and returned to their full-time jobs. Some may be called back to deal with pending state budgetary concerns or controversial issues.  Within the past week, we’ve seen Illinois, Minnesota, and Texas adjourn their regular session. Here is a summary of legislation that passed in these states.

Illinois

The General Assembly adjourned without a budget deal May 31. For legislation affecting community associations, HB 189 dramatically amends the Common Interest Community and Condominium Acts. It has yet to be delivered to Governor Bruce Rauner (R). Once he receives it, he will have 60 days to act or it will become law.

The bill provides:

  • That if the community instruments require approval of any mortgagee or lienholder of record and the mortgagee or lienholder of record receives a request to approve or consent to the amendment to the community instruments, the mortgagee or lienholder of record is deemed to have approved or consented to the request unless the mortgagee or lienholder of record delivers a negative response to the requesting party within 60 days after the mailing of the request.
  • That a request to approve or consent to an amendment to the community instruments that is required to be sent to a mortgagee or lienholder of record shall be sent by certified mail.
  • That an association subject to the Act that consists of 100 or more units shall use generally accepted accounting principles in fulfilling any accounting obligations under the Act.
  • Changes in provisions governing: sharing of expenses; sale of property; contents of bylaws; powers and duties of the board of managers; records of the association; availability of records for examination; amendments to the condominium instruments or bylaws; and subdivision or combination of units.

More information on HB 189 may be found by clicking here. CAI Illinois members can look for more information from its Legislative Action Committee on the status of legislation soon. Any bill that did not pass this year will be eligible for consideration in 2018.

Minnesota

Like Illinois, the Legislature adjourned its regular session May 22 without a budget, but convened in a 3-day special session and passed a budget deal. For legislation affecting community associations, HF 1538 was signed into law by Governor Mark Dayton (D) and addresses construction defect claims.

The bill provides:

  • The definitions of a “construction defect claim” and “development party.”
  • Associations must do the following prior to, or within 90 days of, instituting litigation or arbitration involving construction defect claims:
    • Provide written notice to owners, and specifications of the notice; and
    • Receive a majority approval by owners, and specifications of voting methods.
  • All associations must prepare and approve written preventative maintenance plan, schedule and budget and must follow the plan. The plan must be provided in the disclosure statement. The development party will not have liability if the damages are caused by failing to comply with the maintenance plan.
  • Parties must first submit the matter to mediation prior to commencement of a construction defect claim unless they completed the home warranty dispute resolution.

More information on HF1538 may be found here.  CAI Minnesota members can look for more information from its Legislative Action Committee on the status of legislation soon. Any bill that did not pass this year will be eligible for consideration in 2018.

Texas

The Legislature adjourned May 29. It may reconvene in a special session to address controversial legislation. For legislation affecting community associations, SB 873 relates to the authority and liability of owners and managers of apartment houses, manufactured home rental communities, condominiums, and multiple use facilities in charging tenants for submetered and non-submetered master metered water and wastewater services. The legislation will go into effect immediately if Governor Greg Abbott (R) signs the legislation.

The bill allows a person to file a complaint with the Public Utility Commission (PUC) if an apartment owner, condominium manager, manufactured home rental community owner, or other multiple use facility owner violated certain utility cost rules. PUC would have exclusive jurisdiction for these violations. If PUC found that a tenant had been overcharged, the commission would require an owner or condominium manager to repay the tenant the amount overcharged for submetered or non-submetered water or wastewater services.

More information on SB873 may be found here. The Texas legislature convenes its regular session once every two years, so all bills that did not pass must be reintroduced in 2019.

For more information on what is happening or happened in your state in the 2017 legislative session, click here.

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Matthew Green

Director, State Affairs

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