Bill
HB 5449
Increase transparency and accountability in condo and CIC boards by expanding disclosures, record access, and governance requirements to protect unit owners.
Title: CONDO CI ASSN-DISCLSOURE INFO
Note: The bill is an amendment package to the Common Interest Community Act and related condominium statute changes. The text provided reflects Amendment No. 3 replacing language after the enacting clause and consolidating changes to multiple acts.
The amendments target two primary statutes:
- The Common Interest Community Association Act (CICAA)
- The Condominium Property Act
1) Board Meetings
- Require the board to meet at least 4 times annually.
2) Conflict of Interest and Contracting
- Prohibit entering into contracts with a current board member or with a company in which a board member or their immediate family holds 25% or more interest unless:
- Notice of intent is given to members within 20 days after the decision to enter the contract, and
- Members may petition for an election to approve/disapprove the contract (petition by 20% of the membership, filed within 20 days of notice; election to occur within 30 days after petition).
3) Capital Maintenance and Voting on Payments
- Clarifies that bylaw/operating agreements must provide for maintenance/repair/replacement of common areas and payment methods for vouchers.
4) Management
- Association may engage a manager or management company.
5) Membership Structure
- One class of membership allowed unless instruments provide otherwise; caveat to not affect Section 1-20(c) rights.
6) Fines for Violations
- Board may levy reasonable fines after notice/hearing for violations of governing documents.
7) Financial Fees and Fees Allocation
- Limits fees added to a member’s share of common expenses to attorney/court/arbitration costs or as allowed by contract/instruments (subject to conditions for managing agent fees).
8) Records and Inspection (Board Records)
- Expanded and detailed record-keeping requirements, including:
- Access to declarations, instruments, amendments, annual reports, rules, etc.
- Detailed receipts/expenditures and contracts.
- Board meeting minutes (minimum 7 years).
- Ballots/proxies for elections (minimum 1 year).
- Other records available to not-for-profit members upon proper purpose (per general not-for-profit standards).
- Designation of voting rights for units owned by trusts or entities.
- Inclusion of reserve study.
- Written notice required; failure to provide records within 30 days constitutes denial.
- Reasonable retrieval/copying fees permitted.
- Attorney’s fees may be awarded if noncompliance is proven.
9) Representative Authority
- Board has standing to act in representative capacity on common area matters.
10) Highway District Purchases
- Board may contract with a highway district to furnish road-related materials if the association comprises 50%+ of the township/road district population; such purchases must be included in the finance report.
11) Website and Electronic Communications
- Requires a website providing information on board/association meetings, agendas, and minutes.
- Requires annual electronic transmission of financial data to members (receipts, expenses, invoices, contracts, obligations).
12) General Provisions
- Fiduciary duty: Officers and board members must exercise fiduciary care.
- Collection of assessments does not count as a collections agency under the Collection Agency Act.
- Conflicts with instrument terms: any provision contrary to these sections is void; those not containing required provisions are deemed to include them.
1) Board Powers and Duties (Section 18.4)
- Boards must manage common elements operations, maintenance, and improvements.
- Major expenditure safeguards: if a proposed improvement/expenditure exceeds 5% of the annual budget and is not mandated by law or an emergency, a written petition by 20% of unit owners within 21 days triggers a unit-owner meeting within 30 days to consider and ratify by majority vote at the meeting.
- Other core duties: budgeting, levying/collecting assessments, employing staff, insurance, ownership-related actions, rules adoption, detailed records, and access to units for maintenance.
2) Additional Provisions (Section 40 is added in this Act)
- The new section contemplates further operational, governance, or disclosure-related requirements (text not fully shown in excerpt), likely aligned with the CICAA amendments.
3) Other Related Provisions
- Rules on electronic notices, access to records, and financial disclosures align with CICAA changes to ensure consistency across acts.
Amendments introduce specific timing for key actions:
Accessibility enhancements:
Financial accounting standards:
If you’d like, I can provide a side-by-side comparison with the current statute text or a plain-language briefing for unit owners.
Compiled from official sources — confirm details with the bill’s official record.
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