Regular Session 2023-2024 House Bill 2149 P.N. 2773

PRINTER'S NO. 2773

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2149

Session of

2024

INTRODUCED BY MADSEN, KINSEY, McNEILL, SANCHEZ, DELLOSO,

SHUSTERMAN, ROZZI, GUENST, D. WILLIAMS, CIRESI AND DALEY,

MARCH 25, 2024

REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND

UTILITIES, MARCH 25, 2024

AN ACT

Amending Title 68 (Real and Personal Property) of the

Pennsylvania Consolidated Statutes, in creation, alteration

and termination of planned communities, further providing for

amendment of declaration; and, in management of planned

community, further providing for executive board members and

officers, for bylaws, for meetings, for voting and proxies,

for association records and for complaints filed with Bureau

of Consumer Protection.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Sections 5219(f), 5303(b) and (e)(1), 5306(a)(3)

and (6)(ii) and (c) and 5308(a) and (e) of Title 68 of the

Pennsylvania Consolidated Statutes are amended to read:

§ 5219. Amendment of declaration.

* * *

(f) Technical corrections.--Except as otherwise provided in

the declaration, if any amendment to the declaration is

necessary in the judgment of the executive board to do any of

the following:

(1) cure an ambiguity;

(2) correct or supplement any provision of the

declaration, including the plats and plans, that is

defective, missing or inconsistent with any other provision

of the declaration or with this subpart;

(3) conform to the requirements of any agency or entity

that has established national or regional standards with

respect to loans secured by mortgages or deeds of trust or

units in planned community or so-called "PUD" projects, such

as Federal National Mortgage Association and the Federal Home

Loan Mortgage Corporation; or

(4) comply with any statute, regulation, code or

ordinance which may now or hereafter be made applicable to

the planned community or association, or to make a reasonable

accommodation or permit a reasonable modification in favor of

handicapped, as may be defined by prevailing Federal or State

laws or regulations applicable to the association, unit

owners, residents, tenants or employees;

then, at any time, the executive board may, at its discretion,

effect an appropriate corrective amendment without the approval

of the unit owners or the holders of liens on all or any part of

the planned community, upon receipt of an opinion from legal

counsel who is independent from the declarant to the effect that

the proposed amendment is permitted by the terms of this

subsection. The vote by the executive board to amend the

declaration under this subsection shall only be taken at a

scheduled meeting and after notice to the unit owners as

provided under section 5308 (relating to meetings) that was

advertised 30 days in advance to the unit owners. The notice

shall include each proposed amendment and an opinion from the

legal counsel of the executive board.

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§ 5303. Executive board members and officers.

* * *

(b) Limitation on authority.--The executive board may not

act on behalf of the association to amend the declaration under

section 5219 (relating to amendment of declaration), to

terminate the planned community under section 5220 (relating to

termination of planned community) or to elect members of the

executive board or determine the qualifications, powers and

duties or terms of office of executive board members under

subsection (e), but the executive board may fill vacancies in

its membership for the unexpired portion of any term. The

executive board shall deliver to all unit owners copies of each

budget approved by the executive board and notice of any capital

expenditure approved by the executive board promptly after such

approval. In addition to other rights conferred by the

declaration, bylaws or this subpart, the unit owners, by

majority or any larger vote specified in the declaration, may

reject any budget or capital expenditure approved by the

executive board within 30 days after [approval.] the unit owners

receive copies of the budget or capital expenditure approved by

the executive board.

* * *

(e) Election of members and officers following declarant

control.--

(1) Not later than the termination of any period of

declarant control, the unit owners shall elect an executive

board of at least three members, at least a majority of whom

shall be unit owners in good standing, provided that the

executive board may consist of two members in good standing,

both of whom shall be unit owners in good standing, if the

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planned community consists of two units. The executive board

shall elect the officers. The executive board members and

officers shall take office upon election.

* * *

§ 5306. Bylaws.

(a) Mandatory provisions.--The bylaws of the association

shall provide for all of the following:

* * *

(3) The qualifications, powers and duties, terms of

office and manner of electing executive board members and

officers and removing executive board members and officers

under section 5303(f) (relating to executive board members

and officers) and filling vacancies. The following apply:

(i) The bylaws shall require that executive board

members be unit owners in good standing prior to being

elected or appointed to fill vacancies.

(ii) The bylaws shall require that when more than

one individual owns a unit, only one individual from that

unit shall be eligible to serve on the executive board at

a time.

(iii) The bylaws shall require that meetings of the

executive board be open to all unit owners. The executive

board shall provide notice of a meeting of the executive

board as specified under section 5308 (relating to

meetings) with seven days' advanced notice of the

meeting. The executive board shall allow unit owners to

participate in meetings of the executive board by remote

technology in accordance with section 5308(c).

(iv) The bylaws shall require the executive board to

maintain and make available the agendas and minutes of

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each meeting of the executive board.

(v) The bylaws shall require the executive

board to

provide, in writing, advisory opinions on the executive

board's interpretation of the declaration, association

bylaws or rules and regulations. The executive board

shall make each advisory opinion available to all unit

owners.

* * *

(6) The method of amending the bylaws. The following

apply:

* * *

(ii) The vote may be taken only at a scheduled

meeting and following notice to the unit owners as

provided under section 5308 [(relating to meetings)] that

was advertised 14 days in advance to the unit owners. The

notice shall include the amendatory language, including

the rationale for the amendatory language. Absentee

voting shall be permitted to unit owners provided that

the ballots must be submitted to an independent reviewer

by the commencement of the scheduled meeting.

* * *

the bylaws or code of regulations, if any amendment to the

bylaws or code of regulations is necessary in the judgment of

the executive board to cure any ambiguity or to correct or

supplement any provision of the bylaws or code of regulations

that is defective, missing or inconsistent with any other

provision thereof, with the declaration or with this subpart or

if an amendment is necessary in the judgment of the executive

board to conform to the requirements of any agency or entity

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that has established national or regional standards with respect

to loans secured by mortgages or deeds of trust on units in

planned communities or so-called "PUD projects," cooperative

projects (such as the Federal National Mortgage Association and

the Federal Home Loan Mortgage Corporation), to comply with any

statute, regulation, code or ordinance which may now or

hereafter be made applicable to the planned community or

association, or to make a reasonable accommodation or permit a

reasonable modification in favor of handicapped, as may be

defined by prevailing Federal or State laws or regulations

applicable to the association, unit owners, residents, tenants

or employees, then, at any time and from time to time, the

executive board may at its discretion effect an appropriate

corrective amendment without the approval of the unit owners or

the holders of any liens on all or any part of the planned

community or association, upon receipt by the executive board of

an opinion from legal counsel who is independent from the

declarant to the effect that the proposed amendment is permitted

by the terms of this subsection. The vote by the executive board

to effect an amendment under this subsection shall only be taken

at a scheduled meeting and after notice to the unit owners as

provided under section 5308 that was advertised 30 days in

advance to the unit owners. The notice shall include each

proposed amendment and an opinion from the legal counsel of the

executive board.

§ 5308. Meetings.

(a) Timing and notice.--The bylaws shall require that

meetings of the association be held at least once each year and

shall provide for special meetings. The bylaws shall specify

which of the association's officers, not less than ten nor more

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than 60 days in advance of any meeting, shall cause notice to be

hand delivered or sent prepaid by United States mail to the

mailing address of each unit or to any other mailing address

designated in writing by the unit owner. The notice of a meeting

may be delivered by electronic means if the unit owner has

agreed in writing to accept the notice by electronic means or

where the bylaws permit electronic notices. The notice of any

meeting must state the time and place of the meeting and the

items on the agenda, including the amendatory language and the

general nature of any proposed amendment to the declaration or

bylaws; any budget or assessment changes; and, where the

declaration or bylaws require approval of unit owners, any

proposal to remove a director or officer.

* * *

(e) Recorded meeting.--[Unless the bylaws provide

otherwise,] All meetings of the association may be recorded by

the executive board or unit owners via audio or video

technology, provided that an announcement is made by the

presiding officer or a unit owner at the commencement of the

meeting that the meeting will be recorded. A recorded meeting by

the executive board under this subsection shall be maintained

and available to unit owners for a period of no less than six

months after the date of the meeting.

Section 2. Section 5310(e) of Title 68 is amended by adding

a paragraph to read:

§ 5310. Voting; proxies.

* * *

(e) Approved methods of voting.--Methods of voting shall be

in accordance with the following:

* * *

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(2.1) A unit owner may request that a vote by unit

owners be submitted by the unit owners to an independent

reviewer, who shall tally the results of the vote, certify

the results to the executive board and all unit owners and

keep the identity of the votes anonymous.

* * *

Section 3. Sections 5316(a) and 5322(a) of Title 68 are

amended to read:

§ 5316. Association records.

(a) Financial records.--The association shall keep financial

records sufficiently detailed to enable the association to

comply with section 5407 (relating to resales of units). All

financial and other records, including records of assessments,

fines, violations and contracts, shall be made reasonably

available for examination by any unit owner and authorized

agents.

* * *

§ 5322. Complaints filed with Bureau of Consumer Protection.

(a) General rule.--A unit owner in good standing may file a

complaint with the Bureau of Consumer Protection in the Office

of the Attorney General in the event of a violation by the

declarant or the association of sections 5306 (relating to

bylaws), 5308 (relating to meetings), 5309 (relating to quorums)

and 5310 (relating to voting; proxies).

* * *

Section 4. This act shall take effect in 30 days.

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