Effective Date: August 7th, 2024
Key points:
Expanded Exemptions: The bill broadens the criteria under which small cooperatives and planned communities are exempt from most CCIOA requirements. Specifically, it exempts:
Nonresidential Units or Small Communities: Cooperatives or planned communities created on or after July 1, 1992, that either contain only units restricted to nonresidential use or have no more than 20 units and are not subject to any development rights.
Low Annual Common Expenses: Planned communities that specify in their declarations that the annual average common expense liability of each unit restricted to residential purposes does not exceed $400, adjusted annually since July 1, 1999, for changes in the consumer price index (CPI).
Election to Opt-In: Cooperatives or planned communities that qualify for these exemptions may choose to be subject to the entire CCIOA by adopting an amendment to their declaration in accordance with section 38-33.3-217, indicating their election to be governed by the full act.
Notification Requirement: The Homeowners' Association (HOA) Information Officer within the Department of Regulatory Agencies is tasked with identifying cooperatives and planned communities affected by this act. The officer must provide notice to these entities about the changes and inform them of their option to opt out of the exemption.
This legislation aims to reduce regulatory burdens on small or low-expense cooperatives and planned communities, allowing them greater flexibility in their governance.
