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H 7854Real Estate

Property - Condominium Law

Updates condo law to allow electronic meetings and voting, mandates open board meetings, and requires financial reviews every five years.

Held for study
Population
Affected
28
Email Legislator
Introduced Feb 27, 2026Committee House Corporations

Plain-English Summary

This legislation amends Rhode Island's Condominium Law to modernize governance and increase financial transparency. It explicitly authorizes condominium associations to hold meetings and conduct voting via electronic means, such as video conferencing, and allows for electronic delivery of notices. The bill mandates that executive board meetings be open to unit owners, with specific exceptions for sensitive matters, and requires minutes be made available within 30 days. Additionally, it requires associations with more than 20 units to obtain an independent financial review by a CPA at least once every five years, the cost of which will be a common expense.

For younger readers

This bill changes the rules for people who live in condominiums, which are buildings where people own their own apartments. It says that the group of owners can have their meetings on the computer using video chat instead of just in person. It also makes sure that the people in charge (the board) tell the owners what they are doing and show them the notes from meetings. Finally, for big condo buildings, they must hire a money expert (an accountant) every five years to check the bank records to make sure all the money is being spent correctly.

Who & Where It Applies

Impacted groups
Condominium unit ownersCondominium associationsProperty management companiesCertified Public Accountants (CPAs)Real estate attorneys
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Increases transparency and accountability within housing communities by mandating open meetings and accessible records, empowering residents to monitor the actions of their governing boards.
  • Protects the financial security of residents in larger complexes by requiring independent financial reviews, which helps prevent fraud, embezzlement, or mismanagement of collective funds.
  • Promotes inclusivity and participation in democratic processes by allowing electronic attendance and voting, making it easier for working-class residents, the elderly, or those with mobility issues to have a voice.
  • Mandates professional financial reviews that will create additional costs for associations, potentially leading to higher condo fees that could burden low-income residents or those on fixed incomes.
  • The shift toward electronic notices and portals may inadvertently exclude elderly residents or those without reliable internet access if they do not successfully navigate the opt-out process.
  • Lacks specific government enforcement mechanisms or legal support for residents, meaning that if a board refuses to comply with transparency laws, the only recourse is likely expensive private litigation.
For Conservatives
  • Strengthens the protection of private property investments by instituting financial checks and balances that prevent the misuse of association funds by governing boards.
  • Modernizes private association governance by reducing administrative friction and costs through the authorization of electronic meetings and digital communication.
  • Empowers unit owners, who are essentially shareholders in the corporation, to hold leadership accountable through improved rights to access records and contracts.
  • Interferes with the freedom of contract by imposing state-mandated procedural rules on private associations regarding how they must conduct meetings and manage their internal records.
  • Forces private entities to incur the cost of professional CPA reviews every five years, regardless of whether the members of the association believe such an expense is necessary.
  • Expands government regulation into the bylaws of private housing developments, reducing the flexibility of communities to self-govern based on their specific needs and preferences.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 45 additions · 2 deletions

SECTION 1. Sections 34-36.1-3.08 and 34-36.1-3.18 of the General Laws in Chapter 34- 36.1 entitled "Condominium Law" are hereby amended to read as follows: 34-36.1-3.08. Meetings and notice Meetings and notice, open guidance, minutes, executive session.

(a) A meeting of the association must be held at least once each year. Special meetings of the association may be called by the president, a majority of the executive board or by unit owners having twenty percent (20%), or any lower percentage specified in the bylaws, of the votes in the association. Special meetings requested by unit owners of at least twenty percent (20%), or any lower percentage specified in the bylaws, of the votes in the association must be called by the executive board if the stated purpose is to propose an amendment of the declaration or bylaws, reject the budget, remove a director or officer and elect a replacement, or for any other purpose of which the unit owners are entitled to vote, except for the general election of board members which is to take place at the annual meeting. Not less than ten (10) nor more than sixty (60) days in advance of any meeting, the secretary or other officer specified in the bylaws 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.

(b) The notice of any meeting must state the time and place of the meeting and the items on the agenda, including the general nature of any proposed amendment to the declaration or bylaws, any budget changes, and any proposal to remove a director or officer.

(c) Notwithstanding any provisions in the declaration or bylaws to the contrary, the association may conduct regular or special meetings of the executive board and annual or special meetings of the unit owners by electronic means so that physical presence is not required. All association meetings that take place in a physical location shall be in the county where the condominium is located. All association meetings may be held fully or partially by telephonic or video conference or other interactive electronic communication process as determined by the executive board; provided, however, that all participants shall be able to simultaneously communicate with each other during the meeting. Presence by such electronic means shall satisfy any quorum and voting requirements in the association’s governing documents as well as the requirements of §§ 34-36.1-3.09 and 34-36.1-3.10. Where participation by electronic means is provided for, the notice of any meeting shall, in addition to the requirements of subsection (b) of this section, also identify the remote platform being used and provide the necessary access information to all unit owners to participate.

(d) Where a regular or special meeting of the executive board is held fully or partially by electronic means pursuant to subsection (c) of this section and a quorum has been established, the executive board may vote on any action properly before the board by electronic means including, but not limited to, email, telephonic conferencing, video conferencing, and electronic voting platforms. Where an annual or special meeting of the unit owners is held fully or partially by electronic means pursuant to subsection (c) of this section and a quorum has been established, the unit owners may vote on any action before the membership by electronic means including, but not limited to, telephonic conferencing, video conferencing, or electronic voting platforms, or mail-in ballot, as determined by the executive board. If the declaration or bylaws requires the signature of unit owners for such voting or proxies, unit owners may electronically submit their signatures as determined by the executive board.

(e) Notwithstanding subsection (a) of this section and any provisions in the declaration or bylaws to the contrary, notice of any meeting may alternatively, or additionally, be provided electronically to a unit owner’s email address if such email address has been designated in writing by the unit owner along with written consent to receive meeting notices from the association electronically. Any meeting notice may also be provided alternatively, or additionally, by posting the notice to a secure website or portal of the association or of the association’s agent, if the unit owner has consented in writing to receive meeting notices from the association via electronic posting. Unit owners may opt out of electronic delivery or electronic posting of meeting notices at any time by written revocation submitted to the association.

(f) Regular and special meetings of the executive board shall be open to unit owners, except for executive sessions convened to discuss privileged legal communications, personnel matters, or delinquencies of specific owners. The executive board shall provide a reasonable opportunity for owner comment, at the meeting, on agenda items prior to any vote.

(g) Notice. Not less than five (5) days prior to any regular meeting of the executive board and no less than twenty-four (24) hours for special meetings, the executive board shall provide owners with the date, time, agenda topics, and physical and/or remote access instructions by reasonable means, including electronic notice where an owner has consented.

(h) Minutes. Minutes of executive board and unit owner meetings shall be recorded, approved, and made available to owners within thirty (30) days after approval. Executive-session minutes shall state the general topic and legal basis without privileged detail.

(i) Annual meeting. The annual meeting of unit owners shall include presentation of the budget, (if there is no separate budget meeting otherwise held in that fiscal year), reserves status, update on insurance coverages, and notice of any significant contracts entered into by the association, with any advance materials made available not less than ten (10) days before the meeting. 34-36.1-3.18. Association records Association records - Access to records, timelines, formats, penalties.

(a) The association shall keep financial records sufficiently detailed to enable the association to comply with § 34-36.1-4.09. All financial and other records shall be made reasonably available for examination within thirty (30) days of a request by any unit owner and his or her authorized agent.

(b) Records requested pursuant to this section shall include minutes, insurance policies, bank statements, signed contracts, reserve and condition studies, results of any financial review or audit, and paid vendor invoices.

SECTION 2. Chapter 34-36.1 of the General Laws entitled "Condominium Law" is hereby amended by adding thereto the following section: 34-36.1-3.22. Financial audits for condominium associations.

(a) Applicability. Every condominium association organized under this chapter that governs more than twenty (20) units shall be subject to the financial review requirements set forth in this section.

(b) Financial review requirement. Each association subject to this section shall obtain an independent financial review of the association’s books, records, and accounts at least once every five (5) fiscal years.

(c) Reviewer qualifications. The review shall be conducted by a certified public accountant licensed in this state, who is independent of the association, its managing agent, and any officer or employee of the association.

(d) Distribution of review. A copy of the completed review shall be:

(1) Provided to the executive board upon completion; and

(2) Made available to all unit owners upon request, and provided to any unit owner who requests a copy in writing, subject to reasonable copying costs.

(e) Cost of review. The cost of the review shall be a common expense of the association.

(f) Financial review discrepancies. In the event the financial review report identifies any inconsistencies, the executive board shall proceed to a full audit, which cost shall be a common expense and complete in accordance with subsection (c) of this section and distributed pursuant to subsection (d) of this section.

SECTION 3. This act shall take effect upon passage.