HB1251: HB1251 Right to Information for Homeowners Act; enact

26 LC 62 0046 House Bill 1251 By: Representatives Davis of the 87th, Scott of the 76th, Schofield of the 63rd, Ali of the 106th, and Taylor of the 92nd A BILL TO BE ENTITLED AN ACT To amend Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to1 regulation of specialized land transactions, so as to provide for community associations to2 disclose documents to unit owners upon request; to provide for community associations to3 maintain certain records; to provide for the creation of an onl ine database; to provide for4 annual reports; to provide for a civil action; to provide for a ttorney's fees; to provide for5 penalties; to provide for definitions; to provide a short title; to provide for related matters;6 to provide for an effective date and applicability; to repeal c onflicting laws; and for other7 purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 This Act shall be known and may be cited as the "Right to Infor mation for Homeowners11 Act."12 SECTION 2.13 Chapter 3 of Title 44 of the Official Code of Georgia Annotated , relating to regulation of14 specialized land transactions, is amended by adding a new article to read as follows:15 H. B. 1251 - 1 - 26 LC 62 0046 "ARTICLE 816 44-3-300.17 As used in this article, the term:18 (1) 'Community association' or 'association' means a nongovern mental association of19 participating members in a delineated geographic area comprisin g a neighborhood,20 condominium, cooperative, or group of homeowners or property owners, including, but21 not limited to, a homeowners' association, condominium associat ion, and property22 owners' association.23 (2) 'Condominium association' means an organization or corpora tion formed pursuant24 to Article 3 of this chapter, the 'Georgia Condominium Act,' for the purpose of exercising25 the powers of an association of any condominium under such Act.26 (3) 'Critical documents' means documents held by the community association that are27 affiliated with the workings of the association, including insurance policies held by or for28 the benefit of the association, bank statements for all associa tion accounts, financial29 statements, including budgets, income and expense reports, and audits, governing30 documents, covenants, bylaws, rules, meeting minutes of the boa rd of directors and31 committees, and contracts entered into on behalf of the association.32 (4) 'Homeowners' association' means an organization or corporation of homeowners or33 declarants or developers of a particular subdivision, planned community, or condominium34 that makes and enforces rules for the properties within its jurisdiction and has an elected35 board of directors that enforces and oversees the organization's governing documents.36 (5) 'Property owners' association' means a corporation formed pursuant to Article 6 of37 this chapter, the 'Georgia Property Owners' Association Act,' f or the purpose of38 exercising the powers of an association of property owners under such Act.39 (6) 'Unit' means a portion of the community association intend ed for any type of40 independent ownership and use.41 H. B. 1251 - 2 - 26 LC 62 0046 (7) 'Unit owner' means the owner of a unit subject to a community association.42 44-3-301.43 (a) Community associations shall provide unit owners with access to critical documents.44 (b) Community associations shall make records available within 14 days of the request45 either electronically or as physical copies at reasonable cost.46 (c) Community associations shall maintain a secure online data base containing critical47 documents and allow unit owners to access such database.48 44-3-302.49 (a) Community associations shall publish an annual report including:50 (1) Current insurance policies;51 (2) A summary of the association's financial health, including reserves; and52 (3) A summary of outstanding debts and liabilities.53 (b) Community associations shall annually send unit owners copies of the annual report54 electronically or in print.55 44-3-303.56 (a) Community associations shall have an independent audit of association finances be57 conducted at least once every two years.58 (b) Community associations shall make audit results available to all unit owners within 3059 days of completion of an audit.60 44-3-304.61 (a) Community associations shall provide unredacted copies of monthly bank statements62 to any unit owner upon request.63 (b) Community associations shall maintain all bank records for at least seven years.64 H. B. 1251 - 3 - 26 LC 62 0046 44-3-305.65 (a) Community associations shall provide members with copies of all insurance policies66 covering the association and the association board of directors upon request.67 (b) Community associations shall notify unit owners of any material changes to coverage68 within seven days of such change.69 44-3-306.70 (a) Unit owners shall have a cause of action for damages and a ny other relief a court of71 competent jurisdiction deems appropriate, including, but not limited to, compensatory and72 punitive damages for violations of this article.73 (b) Community associations found in violation of this article shall be fined no more74 than $500.00 for each violation.75 (c) A court may award reasonable attorney's fees and costs to the prevailing party."76 SECTION 3.77 This Act shall become effective upon its approval by the Governor or upon its becoming law78 without such approval and shall apply to violations by community associations on or after79 such effective date.80 SECTION 4.81 All laws and parts of laws in conflict with this Act are repealed.82 H. 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