A08532
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1774
Session of
2015
INTRODUCED BY R. BROWN, BARRAR, COHEN, DAVIS, EMRICK, GIBBONS,
A. HARRIS, HEFFLEY, MALONEY, MILLARD, O'NEILL, THOMAS, TOEPEL
AND MOUL, JANUARY 5, 2016
AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 14, 2016
AN ACT
Amending Title 68 (Real and Personal Property) of the
Pennsylvania Consolidated Statutes, in general provisions
relating to condominiums, cooperatives and planned
communities, providing for complaints filed with Bureau of
Consumer Protection. AS FOLLOWS:
IN MANAGEMENT OF THE CONDOMINIUM, PROVIDING FOR MEDIATION
or alternative dispute resolution IN SUBSTANTIAL CONDOMINIUMS
AND FOR COMPLAINTS FILED WITH BUREAU OF CONSUMER PROTECTION;
IN PROTECTION OF PURCHASERS, FURTHER PROVIDING FOR EFFECT
OF VIOLATIONS ON RIGHTS OF ACTION;
IN MANAGEMENT OF COOPERATIVES, PROVIDING FOR MEDIATION or
alternative dispute resolution IN SUBSTANTIAL COOPERATIVES
AND FOR COMPLAINTS FILED WITH BUREAU OF CONSUMER PROTECTION;
IN MANAGEMENT OF PLANNED COMMUNITY, PROVIDING FOR
MEDIATION or alternative dispute resolution IN SUBSTANTIAL
PLANNED COMMUNITIES AND FOR COMPLAINTS FILED WITH BUREAU OF
CONSUMER PROTECTION AND FURTHER PROVIDING FOR ASSOCIATION
RECORDS; AND
IN PROTECTION OF PURCHASERS, FURTHER PROVIDING FOR EFFECT
OF VIOLATIONS ON RIGHTS OF ACTION.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 68 of the Pennsylvania Consolidated
Statutes is amended by adding sections to read:
§ 3114. Complaints filed with Bureau of Consumer Protection.
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(a) General rule.--The Bureau of Consumer Protection in the
Office of Attorney General shall investigate or mediate a
complaint filed with the bureau by a person who is a unit owner
against the association in which the person is a member for a
violation of any right or benefit of a unit owner as established
by this subpart or a bylaw, rule or regulation adopted by the
association.
(b) Construction.--Nothing in this section shall be
construed to affect or impair the right of a unit owner or
association to pursue a private cause of action or seek other
relief, as authorized by law.
§ 4114. Complaints filed with Bureau of Consumer Protection.
(a) General rule.--The Bureau of Consumer Protection in the
Office of Attorney General shall investigate or mediate a
complaint filed with the bureau by a person who is a proprietary
lessee against the association in which the person is a member
for a violation of any right or benefit of a proprietary lessee
as established by this subpart or a bylaw, rule or regulation
adopted by the association.
(b) Construction.--Nothing in this section shall be
construed to affect or impair the right of a person who is a
proprietary lessee or association to pursue a private cause of
action or seek other relief, as authorized by law.
§ 5115. Complaints filed with Bureau of Consumer Protection.
(a) General rule.--The Bureau of Consumer Protection in the
Office of Attorney General shall investigate or mediate a
complaint filed with the bureau by a person who is a unit owner
against the association in which the person is a member for a
violation of any right or benefit of a unit owner as established
by this subpart or a bylaw, rule or regulation adopted by the
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association.
(b) Construction.--Nothing in this section shall be
construed to affect or impair the right of a unit owner or
association to pursue a private cause of action or seek other
relief, as authorized by law.
Section 2. This act shall take effect in 60 days.
SECTION 1. TITLE 68 OF THE PENNSYLVANIA CONSOLIDATED
STATUTES IS AMENDED BY ADDING SECTIONS TO READ:
§ 3321. MEDIATION or alternative dispute resolution IN
SUBSTANTIAL CONDOMINIUMS.
(A) APPLICABILITY.--
(1) A SUBSTANTIAL CONDOMINIUM ESTABLISHED AFTER THE
EFFECTIVE DATE OF THIS SECTION SHALL ADOPT BYLAWS IN
COMPLIANCE WITH THIS SECTION.
(2) A SUBSTANTIAL CONDOMINIUM ESTABLISHED ON OR BEFORE
THE EFFECTIVE DATE OF THIS SECTION THAT AMENDS THEIR BYLAWS
AFTER THE EFFECTIVE DATE OF THIS SECTION SHALL AT THAT TIME
ADOPT BYLAWS IN COMPLIANCE WITH THIS SECTION.
(2) A condominium established on or before the effective
date of this section may adopt bylaws in compliance with the
provisions of this section.
(B) PROCEDURES.--
(1) THE BYLAWS SHALL ESTABLISH PROCEDURES FOR MEDIATION
OR alternative dispute RESOLUTION PROCEDURE FOR DISPUTES
BETWEEN:
(I) TWO OR MORE UNIT OWNERS; OR
(II) A UNIT OWNER AND THE ASSOCIATION.
(2) MEDIATION OR alternative DISPUTE RESOLUTION SHALL BE
LIMITED TO DISPUTES WHERE ALL PARTIES AGREE TO MEDIATION or
alternative dispute resolution .
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(3) COSTS AND FEES ASSOCIATED WITH MEDIATION OR
alternative DISPUTE RESOLUTION, EXCLUDING ATTORNEY FEES,
SHALL BE ASSESSED EQUALLY AGAINST ALL PARTIES TO A DISPUTE.
(C) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
SUBSECTION:
"SUBSTANTIAL CONDOMINIUM." A CONDOMINIUM CONSISTING OF MORE
THAN 12 UNITS CREATED BEFORE, ON OR AFTER THE EFFECTIVE DATE OF
THIS SECTION. THE TERM SHALL NOT INCLUDE A CONDOMINIUM IN WHICH
ALL UNITS ARE RESTRICTED EXCLUSIVELY TO NONRESIDENTIAL USE.
(c) Construction.--Nothing in this section shall be
construed to affect or impair the right of a unit owner,
declarant or association to pursue a private cause of action or
seek other relief
§ 3322. COMPLAINTS FILED WITH BUREAU OF CONSUMER PROTECTION.
(A) GENERAL RULE.--A UNIT OWNER in good standing MAY FILE A
COMPLAINT WITH THE BUREAU OF CONSUMER PROTECTION IN THE OFFICE
OF ATTORNEY GENERAL IN THE EVENT OF A VIOLATION BY THE DECLARANT
OR THE ASSOCIATION OF SECTIONS 3308 (RELATING TO MEETINGS), 3309
(RELATING TO QUORUMS), 3310 (RELATING TO VOTING; PROXIES) AND
3316 (RELATING TO ASSOCIATION RECORDS).
(B) CONDITION.--IF A MEDIATION OR alternative DISPUTE
resolution PROCEDURE IS AVAILABLE TO THE UNIT OWNER UNDER THE
ASSOCIATION'S DECLARATION, BYLAWS, RULES OR REGULATIONS, A
COMPLAINT MAY NOT BE FILED BY A UNIT OWNER WITH THE BUREAU OF
CONSUMER PROTECTION UNTIL THE EARLIER OF:
(1) THE UNIT OWNER EXHAUSTING THE MEDIATION OR
alternative DISPUTE RESOLUTION PROCEDURE WITHOUT A RESOLUTION
BETWEEN THE UNIT OWNER AND THE ASSOCIATION; OR
(2) AT LEAST 100 DAYS HAVE PASSED SINCE THE UNIT OWNER
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COMMENCED THE MEDIATION OR alternative DISPUTE RESOLUTION
PROCEDURE AND THE UNIT OWNER AND ASSOCIATION HAVING NOT
REACHED A RESOLUTION.
( c) Immediate filing.--A complaint may be filed by a unit
owner with the Bureau of Consumer Protection immediately, if:
(1) a mediation or alternative dispute resolution
procedure is not available to the unit owner under the
association's declaration, bylaws, rules or regulations; or
(2) the association refuses mediation or alternative
dispute resolution under section 3321(b)(2) (relating to
mediation or alternative dispute resolution in condominiums).
(C) (d) CONSTRUCTION.--NOTHING IN THIS SECTION SHALL BE
CONSTRUED TO AFFECT OR IMPAIR THE RIGHT OF A UNIT OWNER,
DECLARANT OR ASSOCIATION TO PURSUE A PRIVATE CAUSE OF ACTION OR
SEEK OTHER RELIEF.
(e) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Unit owner in good standing." A unit owner who is current
in payment of assessments and fines, unless the assessment or
fines are directly related to the complaint being filed with the
Bureau of Consumer Protection regarding sections 3308 (relating
to meetings), 3309 (relating to quorums), 3310 (relating to
voting; proxies) and 3316 (relating to association records).
SECTION 2. SECTION 3412 OF TITLE 68 IS AMENDED TO READ:
§ 3412. EFFECT OF VIOLATIONS ON RIGHTS OF ACTION.
IF A DECLARANT OR ANY OTHER PERSON SUBJECT TO THIS SUBPART
VIOLATES ANY PROVISION THEREOF OR ANY PROVISION OF THE
DECLARATION OR BYLAWS, ANY PERSON OR CLASS OF PERSONS ADVERSELY
AFFECTED BY THE VIOLATION HAS A CLAIM FOR APPROPRIATE RELIEF.
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PUNITIVE DAMAGES MAY BE AWARDED IN THE CASE OF A WILLFUL
VIOLATION OF THE SUBPART AND, IF APPROPRIATE, THE PREVAILING
PARTY MAY BE ENTITLED TO AN AWARD OF COSTS AND REASONABLE
ATTORNEY FEES.
SECTION 3. TITLE 68 IS AMENDED BY ADDING SECTIONS TO READ:
§ 4322. MEDIATION or alternative dispute resolution IN
SUBSTANTIAL COOPERATIVES.
(A) APPLICABILITY.--
(1) A SUBSTANTIAL COOPERATIVE ESTABLISHED AFTER THE
EFFECTIVE DATE OF THIS SECTION SHALL ADOPT BYLAWS IN
COMPLIANCE WITH THIS SECTION.
(2) A SUBSTANTIAL COOPERATIVE ESTABLISHED ON OR BEFORE
THE EFFECTIVE DATE OF THIS SECTION THAT AMENDS THEIR BYLAWS
AFTER THE EFFECTIVE DATE OF THIS SECTION SHALL AT THAT TIME
ADOPT BYLAWS IN COMPLIANCE WITH THIS SECTION.
(2) A cooperative established on or before the effective
date of this section may adopt bylaws in compliance with the
provisions of this section.
(B) PROCEDURES.--
(1) THE BYLAWS SHALL ESTABLISH PROCEDURES FOR
alternative DISPUTE RESOLUTION OR MEDIATION OF DISPUTES
BETWEEN:
(I) TWO OR MORE PROPRIETARY LESSEES; OR
(II) A PROPRIETARY LESSEE AND THE ASSOCIATION.
(2) MEDIATION OR alternative DISPUTE RESOLUTION SHALL BE
LIMITED TO DISPUTES WHERE ALL PARTIES AGREE TO MEDIATION or
alternative dispute resolution .
(3) COSTS AND FEES ASSOCIATED WITH MEDIATION OR
alternative DISPUTE RESOLUTION, EXCLUDING ATTORNEY FEES,
SHALL BE ASSESSED EQUALLY AGAINST ALL PARTIES TO A DISPUTE.
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(C) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
SUBSECTION:
"SUBSTANTIAL COOPERATIVE." A COOPERATIVE CONSISTING OF MORE
THAN 12 UNITS CREATED BEFORE, ON OR AFTER THE EFFECTIVE DATE OF
THIS SECTION. THE TERM SHALL NOT INCLUDE A COOPERATIVE IN WHICH
ALL UNITS ARE RESTRICTED EXCLUSIVELY TO NONRESIDENTIAL USE.
(c) Construction.--Nothing in this section shall be
construed to affect or impair the right of a proprietary lessee,
declarant or association to pursue a private cause of action or
seek other relief.
§ 4323. COMPLAINTS FILED WITH BUREAU OF CONSUMER PROTECTION.
(A) GENERAL RULE.--A PROPRIETARY LESSEE in good standing MAY
FILE A COMPLAINT WITH THE BUREAU OF CONSUMER PROTECTION IN THE
OFFICE OF ATTORNEY GENERAL IN THE EVENT OF A VIOLATION BY THE
DECLARANT OR THE ASSOCIATI ON OF SECTIONS 4308 (RELATING TO
MEETINGS), 4309 (RELATING TO QUORUMS), 4310 (RELATING TO VOTING;
PROXIES) AND 4317 (RELATING TO ASSOCIATION RECORDS).
(B) CONDITION.--IF A MEDIATION OR alternative DISPUTE
resolution PROCEDURE IS AVAILABLE TO THE PROPRIETARY LESSEE
UNDER THE ASSOCIATION'S DECLARATION, BYLAWS, RULES OR
REGULATIONS, A COMPLAINT MAY NOT BE FILED BY A PROPRIETARY
LESSEE WITH THE BUREAU OF CONSUMER PROTECTION UNTIL THE EARLIER
OF:
(1) THE PROPRIETARY LESSEE EXHAUSTING THE MEDIATION OR
alternative DISPUTE RESOLUTION PROCEDURE WITHOUT A RESOLUTION
BETWEEN THE PROPRIETARY LESSEE AND THE ASSOCIATION; OR
(2) AT LEAST 100 DAYS HAVE PASSED SINCE THE PROPRIETARY
LESSEE COMMENCED THE MEDIATION OR alternative DISPUTE
RESOLUTION PROCEDURE AND THE PROPRIETARY LESSEE AND
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ASSOCIATION HAVING NOT REACHED A RESOLUTION.
(c ) Immediate filing.--A complaint may be filed by a
proprietary lessee with the Bureau of Consumer Protection
immediately, if:
(i) a mediation or alternative dispute procedure is not
available to the proprietary lessee under the association's
declaration, bylaws, rules or regulations; or
(ii) the association refuses mediation or alternative
dispute resolution under section 4322(b)(2) (relating to
mediation or alternative dispute resolution in cooperatives).
(C) (d) CONSTRUCTION.--NOTHING IN THIS SECTION SHALL BE
CONSTRUED TO AFFECT OR IMPAIR THE RIGHT OF A PROPRIETARY LESSEE,
DECLARANT OR ASSOCIATION TO PURSUE A PRIVATE CAUSE OF ACTION OR
SEEK OTHER RE LIEF, AS AUTHORIZED BY LAW.
SECTION 4. SECTION 5316(C) OF TITLE 68 IS AMENDED TO READ:
§ 5316. 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
IF THE FINANCIAL RECORDS OF THE ASSOCIATION WHICH SUBSTANTIATE
AN ASSOCIATION'S FINANCIAL STATEMENTS ARE NOT MADE REASONABLY
AVAILABLE BY ANY ASSOCIATION FOR EXAMINATION BY ANY UNIT OWNER
AND AUTHORIZED AGENTS, THE UNIT OWNER MAY FILE A COMPLAINT WITH
THE BUREAU OF CONSUMER PROTECTION IN THE OFFICE OF ATTORNEY
GENERAL.]
(e) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
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subsection unless the context clearly indicates otherwise:
"Proprietary lessee in good standing." A proprietary lessee
who is current in payment of assessments and fines, unless the
assessment or fines are directly related to the complaint being
filed with the Bureau of Consumer Protection regarding sections
4308 (relating to meetings), 4309 (relating to quorums), 4310
(relating to voting; proxies) and 4317 (relating to association
records).
SECTION 5 4. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
§ 5321. MEDIATION or alternative dispute resolution IN
SUBSTANTIAL PLANNED COMMUNITIES.
(A) APPLICABILITY.--
(1) A SUBSTANTIAL PLANNED COMMUNITY ESTABLISHED AFTER
THE EFFECTIVE DATE OF THIS SECTION SHALL ADOPT BYLAWS IN
COMPLIANCE WITH THIS SECTION.
(2) A SUBSTANTIAL COMMUNITY ESTABLISHED ON OR BEFORE THE
EFFECTIVE DATE OF THIS SECTION THAT AMENDS THEIR BYLAWS AFTER
THE EFFECTIVE DATE OF THIS SECTION SHALL AT THAT TIME ADOPT
BYLAWS IN COMPLIANCE WITH THIS SECTION.
(2) A planned community established on or before the
effective date of this section may adopt bylaws in compliance
with the provisions of this section.
(B) PROCEDURES.--
(1) THE BYLAWS SHALL ESTABLISH PROCEDURES FOR
alternative DISPUTE RESOLUTION OR MEDIATION OF DISPUTES
BETWEEN:
(I) TWO OR MORE UNIT OWNERS; OR
(II) A UNIT OWNER AND THE ASSOCIATION.
(2) MEDIATION OR alternative DISPUTE RESOLUTION SHALL BE
LIMITED TO DISPUTES WHERE ALL PARTIES AGREE TO MEDIATION or
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alternative dispute resolution .
(3) COSTS AND FEES ASSOCIATED WITH MEDIATION OR
alternative DISPUTE RESOLUTION, EXCLUDING ATTORNEY FEES,
SHALL BE ASSESSED EQUALLY AGAINST ALL PARTIES TO A DISPUTE.
(C) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
SUBSECTION:
"SUBSTANTIAL PLANNED COMMUNITY." A PLANNED COMMUNITY
CONSISTING OF MORE THAN 12 UNITS CREATED BEFORE, ON OR AFTER THE
EFFECTIVE DATE OF THIS SECTION. THE TERM SHALL NOT INCLUDE A
PLANNED COMMUNITY IN WHICH ALL UNITS ARE RESTRICTED EXCLUSIVELY
TO NONRESIDENTIAL USE.
(c) Construction.--Nothing in this section shall be
construed to affect or impair the right of a unit owner,
declarant or association to pursue a private cause of action or
seek other relief.
§ 5322. COMPLAINTS FILED WITH BUREAU OF CONSUMER PROTECTION.
(A) GENERAL RULE.--A UNIT OWNER in good standing MAY FILE A
COMPLAINT WITH THE BUREAU OF CONSUMER PROTECTION IN THE OFFICE
OF THE ATTORNEY GENERAL IN THE EVENT OF A VIOLATION BY THE
DECLARANT OR THE ASSOCIATION OF SECTIONS 5308 (RELATING TO
MEETINGS), 5309 (RELATING TO QUORUMS) , and 5310 (RELATING TO
VOTING; PROXIES) AND 5316 (REL ATING TO ASSOCIATION RECORDS) .
(B) CONDITION.--IF A MEDIATION OR alternative DISPUTE
resolution PROCEDURE IS AVAILABLE TO THE UNIT OWNER UNDER THE
ASSOCIATION'S DECLARATION, BYLAWS, RULES OR REGULATIONS, A
COMPLAINT MAY NOT BE FILED BY A UNIT OWNER WITH THE BUREAU OF
CONSUMER PROTECTION UNTIL THE EARLIER OF:
(1) THE UNIT OWNER EXHAUSTING THE MEDIATION OR
alternative DISPUTE RESOLUTION PROCEDURE WITHOUT A RESOLUTION
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BETWEEN THE UNIT OWNER AND THE ASSOCIATION; OR
(2) AT LEAST 100 DAYS HAVE PASSED SINCE THE UNIT OWNER
COMMENCED THE MEDIATION OR alternative DISPUTE RESOLUTION
PROCEDURE AND THE UNIT OWNER AND ASSOCIATION HAVING NOT
REACHED A RESOLUTION.
(c) Immediate filing.--A complaint may be filed by a unit
owner with the Bureau of Consumer Protection immediately, if:
(1) a mediation or alternative dispute resolution
procedure is not available to the unit owner under the
association's declaration, bylaws, rules or regulations; or
(2) the association refuses mediation or alternative
dispute resolution under section 5321(b)(2) (relating to
mediation or alternative dispute resolution in planned
communities).
(C) (d) CONSTRUCTION.--NOTHING IN THIS SECTION SHALL BE
CONSTRUED TO AFFECT OR IMPAIR THE RIGHT OF A UNIT OWNER,
DECLARANT OR ASSOCIATION TO PURSUE A PRIVATE CAUSE OF ACTION OR
SEEK OTHER RELIEF, AS AUTHORIZED BY LAW.
(e) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Unit owner in good standing." A unit owner who is current
in payment of assessments and fines, unless the assessment or
fines are directly related to the complaint being filed with the
Bureau of Consumer Protection regarding sections 5308 (relating
to meetings), 5309 (relating to quorums), 5310 (relating to
voting; proxies) and 5316 (relating to association records).
SECTION 6 5. SECTION 5412 OF TITLE 68 IS AMENDED TO READ:
§ 5412. EFFECT OF VIOLATIONS ON RIGHTS OF ACTION.
IF A DECLARANT OR ANY OTHER PERSON SUBJECT TO THIS SUBPART
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VIOLATES ANY PROVISION OF THIS SUBPART OR ANY PROVISIONS OF THE
DECLARATION OR BYLAWS, ANY PERSON OR CLASS OF PERSONS ADVERSELY
AFFECTED BY THE VIOLATION HAS A CLAIM FOR APPROPRIATE RELIEF.
PUNITIVE DAMAGES MAY BE AWARDED IN THE CASE OF A WILLFUL
VIOLATION OF THE SUBPART AND, IF APPROPRIATE, THE PREVAILING
PARTY MAY BE ENTITLED TO AN AWARD OF COSTS AND REASONABLE
ATTORNEY FEES.
SECTION 7 6. THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
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