The Ohio Condominium Act (ORC 5311) and the Ohio Planned Community Act (ORC 5312), are Ohio statutes that regulate condominiums and what are commonly known as condominiums. Both statutes were recently updated when Governor Mike DeWine signed SB 61 into law on June 14, 2022. The updates to both statutes take effect on September 11, 2022. A copy of SB 61 can be viewed here.
The Ohio CAI Legislative Action Committee (LAC) began working with representatives from the Ohio Senate in 2019 and, after addressing revisions to the original draft and delays due to COVID-19 and other legislative actions, SB 61 was unanimously approved by the Senate on June 1, 2022 .
Some of the updates to ORC 5311 and 5312 are related to electronic notices of owner meetings, reserve contributions, insurance, and installation of solar panels and appliances. Below is a summary of the most important changes.
Important changes to condominiums and planned communities
- Authorizes the board of directors of a condominium association (UOA) and the planned condominium association (HOA) to amend their declarations and bylaws to remove unlawful discriminatory covenants without a majority vote of the owners.
- Prohibits a majority of a UOA board and HOA board from consisting of owners or representatives from the same unit (homesteads) or owners or representatives from the same lot (planned communities) unless the board expressly makes an exception before such a majority is in place.
- Requires UOA̵7;s and HOA’s boards to adopt budgets annually.
- Requires reserves included in a UOA budget to be sufficient to repair or replace major capital items in the normal course of business without special assessments, unless an exception applies, and eliminates the requirement that reserves be at least 10% of the annual budget .
- Requires, for both condominiums and planned communities, that any write-off of the reservation requirement is done in writing annually.
- Expands the authority of UOA and HOA boards to participate in legal actions to include land use proceedings and proceedings involving two or more owners, affecting zoning or otherwise relating to matters affecting the property.
- For condominium owners, the standard for reviewing or copying certain books, records or minutes changes from allowing the condominium board to refuse permission to requiring permission from the UOA board.
- Requires an owner to obtain UOA or HOA board approval to inspect or copy books, records or minutes older than five years.
- Allows certain UOA or HOA notices to be sent via email.
- Make the UOA lien for the payment of specified expenses a continuing lien that allows for the collection of amounts incurred after the lien has been filed.
- Allows a UOA board to levy and collect fees for social activities or charitable efforts undertaken on behalf of the UOA.
- Regulates the installation and use of solar energy collection devices on condominium properties and in planned communities.
Changes to condominiums and planned communities that will affect your policy:
- Generally requires a UOA board or HOA board to maintain general fidelity, crime or dishonesty insurance coverage for anyone controlling or disbursing association funds.
- Increases the amount of fire and extended insurance that a UOA board must carry for all buildings and structures in the condominium property from a minimum of 80% of the real market value of the property to at least 90% of the property’s replacement cost.
New Act on Community Authorities
Changes the date from 31 December 2021 to 31 December 2024 by which a new community authority must be established for a developer with a 99-year renewable lease of the land to qualify to undertake a new community development program under the new Community Authority Act.
States that the fee the county clerk must collect for entering or indexing a reference by separately recorded instrument includes any marginal reference, or a reference made by a marginal reference, but now made electronically.
We can help.
Boards of both condominium associations and homeowners associations should review the updated bylaws to make sure everything is correct. Additionally, we are here to help you understand your insurance needs and if any changes need to be addressed, as a result of the bylaws. Contact us today.