Creating a Special Legislative Commission to Study Current Condominium Law and Provide Recommendations for Improvements to Transparency, Accountability and Ongoing Affordability of Condominiums in Rhode Island

WHEREAS, Rhode Island is experiencing a serious shortage of housing for all but the highest income levels; and

WHEREAS, Our state government is prioritizing housing development and production through numerous and varied policies, incentives, and programs; and

WHEREAS, Condominiums represent an opportunity to greatly increase the supply of both naturally occurring and deed restricted affordable housing in the State of Rhode Island; and

WHEREAS, Rhode Island’s condominium laws have not had comprehensive review in several decades; and

WHEREAS, Condominium management is highly complex as it is dictated by both statutory and contractual obligations, which may be in tension to one another; and

WHEREAS, The complexity of condominiums may impact the understanding unit owners and condominium board members have as to their rights and responsibilities, leading to conflict and disagreement, thus ultimately impacting ownership satisfaction, the quality of life within the condominium community, affordability and sustainability; and

WHEREAS, Rising costs of day-to-day and long-term capital needs contribute to instability and unaffordability for condominium unit owners and associations alike; now, therefore be it

RESOLVED, That a special legislative commission be and the same is hereby created consisting of sixteen (16) members: three (3) of whom shall be members of the Rhode Island House of Representatives, not more than two (2) from the same political party, to be appointed by the Speaker of the House; three (3) of whom shall be members of the Senate, not more than two

(2) from the same political party, to be appointed by the President of the Senate; one of whom shall be the Secretary of the Executive Office of Housing, or designee; one of whom shall be the Executive Director of the Community Housing Land Trust of Rhode Island, or designee; one of whom shall be the Executive Director of the Rhode Island League of Cities and Towns, or designee; one of whom shall be the President of the Rhode Island Builders Association, or designee; one of whom shall be a representative of a lending institution making mortgages available to individual owners of condominiums and loans to condominium associations, to be appointed by the Speaker of the House; one of whom shall be a representative of the insurance industry who has expertise in underwriting insurance policies for condominium owners and associations, to be appointed by the President of the Senate; one of whom shall be an attorney with expertise in condominium law, to be appointed by the Speaker of the House after consultation with the House Minority Leader; one of whom shall be a representative of a property management company with expertise in providing management services to condominium associations, to be appointed by the President of the Senate; one of whom shall be a current owner of a condominium in the State of Rhode Island, to be appointed by the Speaker of the House; and one of whom shall be a current owner of a condominium in the State of Rhode Island, to be appointed by the President of the Senate. In lieu of any appointment of a member of the legislature to a legislative study commission, or any commission created by a General Assembly resolution, the appointing authority may appoint a member of the general public to serve in lieu of a legislator. The purpose of said commission shall be to make a comprehensive study identifying existing challenges within Rhode Island’s current condominium law and potential need for changes to allow for greater participation in condominium governance, greater efficacy, transparency and accountability within condominium management and improved long-term affordability of condominiums for all unit owners and associations. The study shall include, but not be limited to: Examination of Uniform Acts from other states; Identification constraints and challenges within current law that impede accessibly and transparency within condominium governance; Identification of constraints and challenges within the current law and general conditions of the market that make cost containment and ongoing affordability challenging; Consideration as to whether low- and moderate-income housing units have additional affordability constraints that warrants specific consideration in condominium fee and special assessment setting; Examine best practices for improving purchaser understanding of condominium ownership and governance; Examine best practices for conflict resolution between condominium owners and condominium association; and Consider resources that are available or could be made available to address affordability challenges within condominium associations and/or unit owners. Forthwith upon passage of this resolution, the members of the commission shall meet at the call of the Speaker of the House and President of the Senate and organize and shall select from among the legislators, co-chairpersons. Vacancies in said commission shall be filled in like manner as the original appointment. The membership of said commission shall receive no compensation for their services. All departments and agencies of the state shall furnish such advice and information, documentary and otherwise, to said commission and its agents as is deemed necessary or desirable by the commission to facilitate the purposes of this resolution. The Joint Committee on Legislative Services is hereby authorized and directed to provide suitable quarters for said commission; and be it further

RESOLVED, That the commission shall report its findings and recommendations to the General Assembly no later than December 31, 2027, and said commission shall expire on March 15, 2028.