THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY O'NEILL, BARRAR, BOYD, CALTAGIRONE, CARROLL, CLYMER, FARRY, HARKINS, KAVULICH, MILLER, MOUL, MURT, PEIFER, WATSON AND YOUNGBLOOD, FEBRUARY 3, 2011

REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 3, 2011  

AN ACT

Amending Title 68 (Real and Personal Property) of the

Pennsylvania Consolidated Statutes, in management of planned

community, further providing for association records; and

providing for meetings of unit owners' associations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 5316 of Title 68 of the Pennsylvania

Consolidated Statutes is 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 shall be made reasonably available

for examination by any unit owner and authorized agents.]

(b)  Annual financial statements.--Within 180 days after the

close of its fiscal year, the association in any planned

community having more than 12 units or subject to any rights

under section 5215 (relating to subdivision or conversion of

units) or 5211 (relating to conversion and expansion of flexible

planned communities) shall prepare annual financial statements

consisting of at least a balance sheet and a statement of

revenues and expenses for the association. The cost of preparing

the financial statements shall be a common expense. Each unit

owner shall be entitled to receive from the association, within

30 days after submitting a written request to the association, a

copy of the annual financial statements and, if such financial

statements are audited, reviewed or compiled by an independent

certified public accountant or independent public accountant, a

copy of the independent accountant's report on the financial

statements. The association may charge a fee not to exceed the

cost of producing copies of records other than the financial

statement.

(b.1)  Access to association records.--

(1)  All association records shall be accessible for

inspection and duplication by a unit owner or an authorized

agent of the unit owner in accordance with this section.

(2)  An association may fulfill verbal requests for

access to an association record. In the event that the

requesting unit owner wishes to pursue relief under

subsection (c), the unit owner shall initiate the relief with

a written request.

(3)  An association record may not be used for commercial

purposes.

(4)  If an association determines that any portion of a

record in its possession is not an association record, the

association's response to a request for access to the record

shall grant access to the portion of the record that is an

association record and deny access to the portion of the

record that is not an association record. If the information

that is not subject to access is an integral part of the

association record and cannot be separated, the association

shall redact from the record the information that is not

subject to access.

(5)  Upon receipt of a written request for access to an

association record, an association shall make a good faith

effort to determine if the record requested is an association

record under this section and to respond as promptly as

possible under the circumstances existing at the time of the

request but shall not exceed 15 business days from the date

the written request is received by the association. If the

agency fails to send a response within 15 business days, the

written request for access shall be deemed denied. Upon

receipt of a written request for access, an association shall

send written notice to the requester within 15 business days

of the association's receipt of the request for access if the

association determines that one of the following applies:

(i)  The request for access requires redaction of an

association record in accordance with paragraph (4).

(ii)  A timely response to the request for access

cannot be accomplished due to bona fide and specified

manpower limitations.

(iii)  A legal review is necessary to determine

whether the record is an association record subject to

access under this section.

The notice shall include a statement notifying the requester

that the request for access is being reviewed, the reason for

the review and a reasonable date that a response is expected

to be provided, which date shall be no later than 30 business

days following the association's receipt of the request for

access.

(6)  An association may impose and collect reasonable

fees, reflecting the actual costs of materials and labor, for

duplication of association records.

(c)  Filing of complaints.--If an association subject to

subsection (a) fails to provide a copy of the annual financial

statements and, if applicable, the report of an independent

accountant as required under subsection (b) to the requesting

unit owner [within 30 days of the unit owner's written request

or] prior to the deadline established in subsection (b.1)(5), if

the financial records of the association which substantiate an

association's financial statements, or any other requested

association records are not made [reasonably] available by any

association for examination by any unit owner and authorized

agents[,] prior to the deadline established in subsection (b.1)

(5), or if the association denies access to an association

record under subsection (b.1)(5), the unit owner may file a

complaint with the Bureau of Consumer Protection in the Office

of Attorney General.

(d)  Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Association record."  The term includes financial records, 

annual financial statements, bylaws, rules, regulations and

budgets adopted by the association, board-approved minutes of

meetings, contracts entered into by the association, insurance

policies, declarations and amendments to the declaration. The

term does not include personnel records, an individual's medical

records, records relating to business transactions that are

currently in negotiation, privileged communications with legal

counsel, complaints against a unit owner, records of executive

board meetings or information which, if disclosed, would

constitute an invasion of privacy under Federal or State law.

Section 2.  Title 68 is amended by adding a section to read:

§ 5321.  Meetings of unit owners' associations.

(a)  Bylaws.--The bylaws of any unit owners' association

shall, in addition to the provisions of section 5308 (relating

to meetings), provide that:

(1)  A meeting of the association, executive board or any

committee, commission or other entity that is a subdivision

of the executive board, except an executive board meeting

under paragraph (4), shall be open to unit owners, and an

appropriate officer of the association shall provide notice

as follows:

(i)  Notice of an association meeting shall be

provided under section 5308.

(ii)  Notice of any other meeting, except an

executive board meeting under paragraph (4) or emergency

meeting under paragraph (5), shall be provided as

specified in the bylaws and shall, at a minimum:

(A)  Include the time and place of the meeting

and the items on the agenda.

(B)  Be posted at either the main entrance to the

substantial planned community or at a central

location within the substantial planned community

designated for such purposes. All official action

shall be taken at a meeting under this paragraph or

an emergency meeting under paragraph (5).

(2)  Except during an executive board meeting under

paragraph (4), written minutes shall be kept of any

association meeting, including the time and date of the

meeting, the number of unit owners in attendance, the

substance of all official actions taken at the meeting and a

record of votes on official action by individual executive

board members or officers.

(3)  Unit owners shall be provided at any meeting, except

an executive board meeting under paragraph (4), with a

reasonable opportunity to comment on matters of concern,

deliberation or official action that are or may be under

consideration at that meeting.

(4)  (i)  The executive board may exclude unit owners

from an executive board meeting. An executive board

meeting shall only be convened during an open meeting

under paragraph (1) or (5) upon an affirmative vote of a

majority of the members of the executive board in

attendance at the opening meeting.

(ii)  An executive board meeting may be held for any

of the following reasons, which reason shall be announced

at the open meeting prior to the executive board meeting:

(A)  To discuss any matter involving the

employment, termination of employment, terms and

conditions of employment, evaluation of performance,

promotion or discipline of any specific prospective

employee or current employee employed by the

association, or former employee, provided, however,

that the individual employee whose rights could be

adversely affected may request in writing that the

matter or matters be discussed at an open meeting.

(B)  To consider the purchase or lease of real

property up to the time an option to purchase or

lease the real property is obtained or up to the time

an agreement to purchase or lease the property is

obtained if the agreement is obtained directly

without an option.

(C)  To consult with its attorney or other

professional advisor regarding any information or

strategy in connection with litigation or with an

issue on which an identifiable complaint is expected

to be filed.

(D)  To review and discuss business that, if

conducted in public, would violate a lawful privilege

or lead to the disclosure of information or

confidentiality protected by law.

(iii)  Official action on discussion held at an

executive board meeting shall be taken at an open meeting

and no executive board meeting shall be used as a

subterfuge to defeat the purposes of paragraph (1) or

(5).

(iv)  The provisions of this paragraph shall not

apply to any meeting involving the appointment or

selection of any person to fill a vacancy in the

executive board.

(5)  (i)  The executive board may call an emergency

meeting for the purpose of dealing with a real or

potential emergency involving a clear and present danger

to life or property.

(ii)  An emergency meeting shall be open to unit

owners and shall be subject to the requirements of

paragraphs (2) and (3).

(iii)  The bylaws shall specify which member of the

association's executive board shall provide notice of any

emergency meeting and shall further specify the means and

methods of providing the notice, including, but not

limited to, posting the notice at either the main

entrance to the substantial planned community or at a

central location within the substantial planned community

designated for such purposes.

(b)  Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Meeting."  A prearranged gathering held for the purpose of

deliberating association business or taking official action of:

(1)  an association, which is attended or participated in

by a quorum of unit owners;

(2)  an executive board, which is attended or

participated in by a quorum of the executive board; or

(3)  any committee, commission or other entity that is a

subdivision of the executive board of the association, which

is attended or participated in by a quorum of the committee,

commission or entity.

"Official action."  Any of the following:

(1)  The establishment of policy by an association.

(2)  A decision on association business made by an

association.

(3)  A vote taken by an association, executive board or

any committee, commission or other entity that is a

subdivision of the executive board of an association on any

proposal, resolution, rule, regulation or report.

Section 3.  This act shall take effect in 60 days.