* House Bill 595 was signed by Governor Tom Wolf on Monday, May 7, 2018. The Bill becomes effective on Wednesday, July 6.
The Pennsylvania General Assembly passed House Bill 595, which is expected to be signed by Governor Wolf. This Bill gives a process for deciding disputes in Condominium and Homeowners’ Associations. There are a few things that every Association should know about this new requirement. They are:
- Most Associations need to adopt bylaws or rules and regulations that establish Alternate Dispute Resolution (ADR) procedures. This includes procedures for disputes between two or more unit owners and/or between a unit owner and the Association.
- A “unit owner in good standing” can file a Complaint with the Attorney General’s Bureau of Consumer Protection for a violation of the Act relating to meetings, quorums, voting, proxies, and Association records. Previously, this option was available only to disputes over Association financial records.
- A “unit owner in good standing” is someone who has no past due assessments. So a unit owner that is behind on their assessments cannot file a Complaint with the Bureau of Consumer Protection. Except that if the unpaid assessments are related to a Complaint filed with the Bureau of Consumer Protection, then the unit owner is in good standing regardless of unpaid assessments.
- A unit owner cannot file a Complaint with the Bureau of Consumer Protection until he or she has exhausted the ADR procedure or at least 100 days after the unit owner started the Alternative Dispute Resolution procedure. If there is no ADR procedure, the unit owner can go straight to the Bureau.
- Finally, if a unit owner has a dispute with the Association and wins, he or she may be entitled to an award of costs and reasonable attorney’s fees.
These additions to the Uniform Condominium Act and the Uniform Planned Communities Act are intended to help owners and Associations settle their differences without going to court. In order to do this, Associations will need to take some steps to prepare themselves:
Continue Reading Alternate Dispute Resolution Comes to Association Communities (Whether they want it or not)