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SENATE AMENDED
PRIOR PRINTER'S NO. 1919
PRINTER'S NO. 3688
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1499
Session of
2017
INTRODUCED BY M. K. KELLER, O'BRIEN, CALTAGIRONE, DiGIROLAMO,
A. HARRIS, JAMES, MILLARD, ROE, ZIMMERMAN AND DAVIS,
JUNE 6, 2017
SENATOR McGARRIGLE, URBAN AFFAIRS AND HOUSING, IN SENATE, AS
AMENDED, JUNE 13, 2018
AN ACT
Amending Title 68 (Real and Personal Property) of the
Pennsylvania Consolidated Statutes, IN CREATION, ALTERATION
AND TERMINATION OF CONDOMINIUMS, FURTHER PROVIDING FOR
CONTENTS OF DECLARATION AND ALL CONDOMINIUMS; in management
of the condominium, further providing for powers of unit
owners' association, for executive board members and officers
and for conveyance or encumbrance of common elements; in
protection of purchasers, further providing for release of
liens and for warranty against structural defects; IN
CREATION, ALTERATION AND TERMINATION OF COOPERATIVES, FURTHER
PROVIDING FOR CONTENTS OF DECLARATION; in management of
cooperatives, further providing for powers of association,
for executive board members and officers and for conveyance
or encumbrance of cooperative; in protection of cooperative
interest purchasers, further providing for release of liens
and for implied warranty against structural defects; in
general provisions relating to planned communities, further
providing for definitions; in creation, alteration and
termination of planned communities, further providing for
construction and validity of declaration and bylaws and for
contents of declaration and all planned communities; in
management of planned community, further providing for power
of unit owners' association, for executive board members and
officers and for conveyance or encumbrance of common
facilities; and, in protection of purchasers, further
providing for release of liens and for warranty against
structural defects.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
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Section 1. Sections 3302(a)(11) and 3303(e) of Title 68 of
the Pennsylvania Consolidated Statutes are amended to read:
SECTION 1. SECTION 3205 OF TITLE 68 OF THE PENNSYLVANIA
CONSOLIDATED STATUTES IS AMENDED BY ADDING A PARAGRAPH TO READ:
§ 3205. CONTENTS OF DECLARATION; ALL CONDOMINIUMS.
THE DECLARATION FOR A CONDOMINIUM MUST CONTAIN:
* * *
(13.1) IF THE DECLARATION PROVIDES THAT THE ASSOCIATION
OR A UNIT OWNER IS OR SHALL BE RESPONSIBLE FOR OPERATION AND
MAINTENANCE OF STORM WATER MANAGEMENT FACILITIES, A STATEMENT
THAT UPON APPROVAL OF THE PERMITTEE'S NOTICE OF TERMINATION
BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION OR BY AN
AUTHORIZED COUNTY CONSERVATION DISTRICT, IT SHALL BE DEEMED
THAT THE ASSOCIATION OR UNIT OWNER, AS APPLICABLE, AGREE TO
AND SHALL BECOME RESPONSIBLE FOR COMPLIANCE WITH THE STORM
WATER MANAGEMENT FACILITIES' PERMIT TERMS AND CONDITIONS,
INCLUDING LONG-TERM OPERATION AND MAINTENANCE OF
POSTCONSTRUCTION STORM WATER BEST MANAGEMENT PRACTICES IN
ACCORDANCE WITH APPLICABLE REQUIREMENTS. THE DECLARANT SHALL
REMAIN RESPONSIBLE FOR COMPLIANCE WITH OTHER OBLIGATIONS WITH
RESPECT TO STORM WATER MANAGEMENT FACILITIES AS MAY BE
REQUIRED BY THE APPROVED SUBDIVISION AND LAND DEVELOPMENT
PLANS, THE DECLARATION OR THIS SUBPART UNTIL SUCH TIME AS THE
OBLIGATIONS OF THE DECLARANT MAY CEASE.
* * *
SECTION 2. SECTIONS 3302(A)(11) AND 3303(E) OF TITLE 68 ARE
AMENDED TO READ:
§ 3302. Powers of unit owners' association.
(a) General rule.--Subject to the provisions of the
declaration, the association, even if unincorporated, may:
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* * *
(11) Impose charges for late payment of assessments and,
after notice and an opportunity to be heard[, levy]:
(i) Levy reasonable fines for violations of the
declaration, bylaws and rules and regulations of the
association.
(ii) For any period during which assessments are
delinquent or violations of the declaration, bylaws and
rules and regulations remain uncured, suspend unit
owners' rights, including, without limitation, the right
to vote, the right to serve on the board or committees
and the right of access to common elements, recreational
facilities or amenities.
* * *
§ 3303. Executive board members and officers.
* * *
(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
must be unit owners, except that the executive board may
consist of two members, both of whom must be unit owners, if
the condominium consists of two units. The executive board
shall elect the officers. The persons elected shall take
office upon election.
(2) In the event that the election of the executive
board by the unit owners fails to take place not later than
the termination of a period of declarant control as provided
in this section, then a special meeting of the unit owners
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may be called for such purpose by any member of the executive
board elected by the unit owners or, if there is no such
member of the executive board, the unit owners entitled to
cast at least 10% of the votes in the association.
* * *
Section 2 3. Section 3318(d) of Title 68 is amended and the
section is amended by adding a subsection to read:
§ 3318. Conveyance or encumbrance of common elements.
* * *
(d) Other conveyances or encumbrances void.--Any purported
conveyance, encumbrance, judicial sale, tax sale or other
voluntary or involuntary transfer of common elements, unless
made pursuant to this section, is void.
* * *
(h) Subject to declaration.--An interest in common elements
that is subject to the declaration prior to conveyance or
encumbrance shall remain subject to the declaration following
the conveyance or encumbrance, unless the deed or agreement to
convey the common elements or subject them to a security
interest specifically provides otherwise.
Section 3 4. Sections 3409(b)(2), AND 3411(e), 4302(a)(11)
and 4303(f) of Title 68 are amended to read:
§ 3409. Release of liens.
* * *
(b) Other liens.--Before conveying real estate to the
association, the declarant shall have the real estate released
from:
* * *
(2) All other liens, including, without limitation, real
estate taxes, on that real estate unless the public offering
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statement describes certain real estate which may be conveyed
subject to liens in specified amounts.
§ 3411. Warranty against structural defects.
* * *
(e) Limitation of actions.--No action to enforce the
warranty created by this section shall be commenced later than
six years after the warranty begins[.], provided, however, that
the limitation period affecting a right of action by the
association under this section is tolled until the period of
declarant control terminates. SHALL BE SIX YEARS AFTER THE
WARRANTY BEGINS OR TWO YEARS AFTER THE UNIT OWNERS ELECT AN
EXECUTIVE BOARD UNDER SECTION 3303(E) (RELATING TO EXECUTIVE
BOARD MEMBERS AND OFFICERS), WHICHEVER IS LATER.
SECTION 5. SECTION 4205(A) OF TITLE 68 IS AMENDED BY ADDING
A PARAGRAPH TO READ:
§ 4205. CONTENTS OF DECLARATION.
(A) GENERAL RULE.--THE DECLARATION FOR A COOPERATIVE MUST
CONTAIN:
* * *
(15) IF THE DECLARATION PROVIDES THAT THE ASSOCIATION OR
A UNIT OWNER IS OR SHALL BE RESPONSIBLE FOR OPERATION AND
MAINTENANCE OF STORM WATER MANAGEMENT FACILITIES, A STATEMENT
THAT UPON APPROVAL OF THE PERMITTEE'S NOTICE OF TERMINATION
BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION OR BY AN
AUTHORIZED COUNTY CONSERVATION DISTRICT, IT SHALL BE DEEMED
THAT THE ASSOCIATION OR UNIT OWNER, AS APPLICABLE, AGREE TO
AND SHALL BECOME RESPONSIBLE FOR COMPLIANCE WITH THE STORM
WATER MANAGEMENT FACILITIES' PERMIT TERMS AND CONDITIONS,
INCLUDING LONG-TERM OPERATION AND MAINTENANCE OF
POSTCONSTRUCTION STORM WATER BEST MANAGEMENT PRACTICES IN
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ACCORDANCE WITH APPLICABLE REQUIREMENTS. THE DECLARANT SHALL
REMAIN RESPONSIBLE FOR COMPLIANCE WITH OTHER OBLIGATIONS WITH
RESPECT TO STORM WATER MANAGEMENT FACILITIES AS MAY BE
REQUIRED BY THE APPROVED SUBDIVISION AND LAND DEVELOPMENT
PLANS, THE DECLARATION OR THIS SUBPART UNTIL SUCH TIME AS THE
OBLIGATIONS OF THE DECLARANT MAY CEASE.
* * *
SECTION 6. SECTIONS 4302(A)(11) AND 4303(F) OF TITLE 68 ARE
AMENDED TO READ:
§ 4302. Powers of association.
(a) General rule.--Except as provided in subsection (b) and
subject to the provisions of the declaration, the association
may:
* * *
(11) Impose charges for late payment of assessments and,
after notice and an opportunity to be heard[, levy]:
(i) Levy reasonable fines for violations of the
declaration, bylaws and rules and regulations of the
association.
(ii) For any period during which assessments are
delinquent or violations of the declaration, bylaws and
rules and regulations remain uncured, suspend unit
owners' rights, including, without limitation, the right
to vote, the right to serve on the board or committees
and the right of access to common elements, recreational
facilities or amenities.
* * *
§ 4303. Executive board members and officers.
* * *
(f) Election of executive board following declarant
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control.--
(1) Not later than the termination of any period of
declarant control, the proprietary lessees shall elect an
executive board of at least three members, at least a
majority of whom must be proprietary lessees. Unless the
declarant has retained such right during the declarant
control period, the executive board shall elect the officers.
The executive board members and officers shall take office
upon election.
(2) In the event that the election of the executive
board by the proprietary lessees fails to take place not
later than the termination of a period of declarant control
as provided in this section, then a special meeting of the
proprietary lessees may be called for such purpose by any
member of the executive board elected by the proprietary
lessees or, if there is no such member of the executive
board, the proprietary lessees entitled to cast at least 10%
of the votes in the association.
* * *
Section 4 7. Section 4312(d) of Title 68 is amended and the
section is amended by adding a subsection to read:
§ 4312. Conveyance or encumbrance of cooperative.
* * *
(d) Unauthorized conveyance or encumbrance void.--Any
purported conveyance, encumbrance, judicial sale, tax sale or
other voluntary or involuntary transfer of the cooperative,
unless made pursuant to this section or section 4217(c)
(relating to termination of cooperative ownership), is void.
* * *
(f) Subject to declaration.--A part of the cooperative which
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is subject to the declaration prior to conveyance or encumbrance
shall remain subject to the provisions of the declaration
following the conveyance or encumbrance, unless the deed or
agreement to convey the cooperative or subject it to a security
interest specifically provides otherwise.
Section 5 8. Sections 4411(b) and 4414(e) of Title 68 are
amended to read:
§ 4411. Release of liens.
* * *
(b) Conveyance to association.--Before conveying real estate
to the association, the declarant shall have that real estate
released from liens, including, without limitation, real estate
taxes, on that real estate unless the public offering statement
discloses the amount of the real estate encumbered by and the
effect of a default under a lien not being released.
§ 4414. Implied warranty against structural defects.
* * *
(e) Limitation of action.--No action to enforce the warranty
created by this section shall be commenced later than six years
after the warranty begins[.], provided, however, that the
limitation period affecting a right of action by the association
under this section is tolled until the period of declarant
control terminates. SHALL BE SIX YEARS AFTER THE WARRANTY BEGINS
OR TWO YEARS AFTER THE UNIT OWNERS ELECT AN EXECUTIVE BOARD
UNDER SECTION 3303(E) (RELATING TO EXECUTIVE BOARD MEMBERS AND
OFFICERS), WHICHEVER IS LATER.
Section 6 9. The definition of "common facilities" in
section 5103 of Title 68 is amended to read:
§ 5103. Definitions.
The following words and phrases when used in this subpart and
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in the declaration and bylaws shall have the meanings given to
them in this section unless specifically provided otherwise or
unless the context clearly indicates otherwise:
* * *
"Common facilities." Any real estate within a planned
community which is owned by the association [or], leased to the
association[.] or designated as common facilities, common area
or open space or other similar term intended to identify a
parcel in the declaration or the plats and plans recorded or
referenced in the declaration. The term does not include a unit.
* * *
Section 7 10. Section 5203 of Title 68 is amended by adding
a subsection to read:
§ 5203. Construction and validity of declaration and bylaws.
* * *
(e) Effect of noncompliance.--If the declarant preserved the
rights identified in section 5205(13), (14), (15) or (16)
(relating to contents of declaration; all planned communities)
in the declaration or any of those provisions are otherwise
applicable, the declarant's failure to include in the
declaration any of the provisions or statements as required
under each of those provisions shall not affect the
enforceability of the provisions or statements as if they were
included in the declaration.
Section 8. Sections 5205(16) introductory paragraph, 5302(a)
(11) and 5303(e) of Title 68 are amended to read:
SECTION 11. SECTION 5205(16) INTRODUCTORY PARAGRAPH OF TITLE
68 IS AMENDED AND THE SECTION IS AMENDED BY ADDING A PARAGRAPH
TO READ:
§ 5205. Contents of declaration; all planned communities.
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The declaration for a planned community must contain:
* * *
(16) If a declarant designates or wishes to retain the
right to designate in the declaration as a common facility
any portion of a planned community or any improvement or
facility then existing or contemplated for a planned
community, then all of the following:
* * *
(16.1) IF THE DECLARATION PROVIDES THAT THE ASSOCIATION
OR A UNIT OWNER IS OR SHALL BE RESPONSIBLE FOR OPERATION AND
MAINTENANCE OF STORM WATER MANAGEMENT FACILITIES, A STATEMENT
THAT UPON APPROVAL OF THE PERMITTEE'S NOTICE OF TERMINATION
BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION OR BY AN
AUTHORIZED COUNTY CONSERVATION DISTRICT, IT SHALL BE DEEMED
THAT THE ASSOCIATION OR UNIT OWNER, AS APPLICABLE, AGREE TO
AND SHALL BECOME RESPONSIBLE FOR COMPLIANCE WITH THE STORM
WATER MANAGEMENT FACILITIES' PERMIT TERMS AND CONDITIONS,
INCLUDING LONG-TERM OPERATION AND MAINTENANCE OF
POSTCONSTRUCTION STORM WATER BEST MANAGEMENT PRACTICES IN
ACCORDANCE WITH APPLICABLE REQUIREMENTS. THE DECLARANT SHALL
REMAIN RESPONSIBLE FOR COMPLIANCE WITH OTHER OBLIGATIONS WITH
RESPECT TO STORM WATER MANAGEMENT FACILITIES AS MAY BE
REQUIRED BY THE APPROVED SUBDIVISION AND LAND DEVELOPMENT
PLANS, THE DECLARATION OR THIS SUBPART UNTIL SUCH TIME AS THE
OBLIGATIONS OF THE DECLARANT MAY CEASE.
* * *
SECTION 12. SECTIONS 5302(A)(11) AND 5303(E) OF TITLE 68 ARE
AMENDED TO READ:
§ 5302. Power of unit owners' association.
(a) General rule.--Except as provided in subsection (b) and
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subject to the provisions of the declaration and the limitations
of this subpart, the association, even if unincorporated, may:
* * *
(11) Impose charges for late payment of assessments and,
after notice and an opportunity to be heard[, levy]:
(i) Levy reasonable fines for violations of the
declaration, bylaws and rules and regulations of the
association.
(ii) For any period during which assessments are
delinquent or violations of the declaration, bylaws and
rules and regulations remain uncured, suspend unit
owners' rights, including, without limitation, the right
to vote, the right to serve on the board or committees
and the right of access to common elements, recreational
facilities or amenities.
* * *
§ 5303. Executive board members and officers.
* * *
(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, provided that the executive board may
consist of two members, both of whom shall be unit owners, if
the planned community consists of two units. The executive
board shall elect the officers. The executive board members
and officers shall take office upon election.
(2) In the event that the election if OF the executive
board by the unit owners fails to take place not later than
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the termination of a period of declarant control as provided
in this section, then a special meeting of the unit owners
may be called for such purpose by any member of the executive
board elected by the unit owners or, if there is no such
member of the executive board, unit owners entitled to cast
at least 10% of the votes in the association.
* * *
Section 9 13. Section 5318(d) of Title 68 is amended and the
section is amended by adding a subsection to read:
§ 5318. Conveyance or encumbrance of common facilities.
* * *
(d) Other conveyances or encumbrances void.--Any purported
conveyance, encumbrance, judicial sale, tax sale or other
voluntary or involuntary transfer of common facilities, unless
made pursuant to this section, is void.
* * *
(h) Subject to declaration.--An interest in common
facilities that is subject to the declaration prior to
conveyance or encumbrance shall remain subject to the provisions
of the declaration following the conveyance or encumbrance,
unless the deed or agreement to convey the common facilities or
subject them to a security interest specifically provides
otherwise.
Section 10 14. Sections 5409(b)(2) and 5411(e) of Title 68
are amended to read:
§ 5409. Release of liens.
* * *
(b) Other liens.--Before conveying real estate to the
association, the declarant shall have the real estate released
from:
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* * *
(2) All other liens, including, without limitation, real
estate taxes, on that real estate unless the public offering
statement describes certain real estate which may be conveyed
subject to liens in specified amounts.
§ 5411. Warranty against structural defects.
* * *
(e) Limitation of actions.--No action to enforce the
warranty created by this section shall be commenced later than
six years after the warranty begins[.], provided, however, that
the limitation period affecting a right of action by the
association under this section is tolled until the period of
declarant control terminates. SHALL BE SIX YEARS AFTER THE
WARRANTY BEGINS OR TWO YEARS AFTER THE UNIT OWNERS ELECT AN
EXECUTIVE BOARD UNDER SECTION 3303(E) (RELATING TO EXECUTIVE
BOARD MEMBERS AND OFFICERS), WHICHEVER IS LATER.
* * *
SECTION 15. THIS ACT SHALL SUPERSEDE ANY INCONSISTENT
PROVISION OF ANY OTHER STATUTE, REGULATION OR ORDINANCE.
Section 11 16. This act shall take effect in 60 days.
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