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Bill

SB 816

AN ACT CONCERNING RESERVE FUNDS IN COMMON INTEREST COMMUNITIES.

2025 Regular Session Introduced by Herron Gaston and 1 co-sponsor

SB 816 establishes reserve fund standards for Connecticut homeowners associations and condominiums to ensure adequate funding for major repairs and prevent surprise assessments on residents.

REF. TO JOINT COMM. ON Insurance and Real Estate
#commoninterestcommunities
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Bill Summary · SB 816

Legislative bill overview

SB 816 addresses reserve fund requirements for common interest communities (condominiums, homeowners associations, and similar properties) in Connecticut. The bill establishes or modifies standards for how these communities must set aside and manage financial reserves for major repairs and replacements. This applies to the governance and financial planning obligations of community association boards.

Why is this important

Reserve funds are critical to preventing sudden, large special assessments on homeowners when major infrastructure fails (roofs, foundations, parking lots, etc.). Inadequate reserves can force property owners into unexpected financial burdens and reduce property values. Clear statutory requirements protect both individual homeowners and community financial stability.

Potential points of contention

  • Burden on current residents: Requiring higher reserve contributions increases monthly fees/assessments, potentially affecting affordability for current owners who may not benefit from future repairs
  • Developer vs. homeowner interests: Developers may resist strict reserve requirements as they increase construction costs and reduce initial buyer appeal; homeowners want protection from future assessments
  • Enforcement and disclosure: Disagreement may arise over how strictly reserves must be funded, what penalties apply for non-compliance, and whether disclosure requirements are burdensome for small associations

Compiled from official sources — confirm details with the bill’s official record.

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