SENATE AMENDED
PRIOR PRINTER'S NOS. 2702, 3514, 3588
PRINTER'S NO. 3953
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, MOUL AND KORTZ, JANUARY 5, 2016
SENATOR WAGNER, URBAN AFFAIRS AND HOUSING, IN SENATE, AS
AMENDED, SEPTEMBER 27, 2016
AN ACT
Amending Title 68 (Real and Personal Property) of the
Pennsylvania Consolidated Statutes, as follows:
IN GENERAL PROVISIONS, FURTHER PROVIDING FOR DEFINITIONS;
in management of the condominium, providing for mediation
or alternative dispute resolution in 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 GENERAL PROVISIONS, FURTHER PROVIDING FOR DEFINITIONS;
in management of cooperatives, providing for mediation or
alternative dispute resolution in cooperatives and for
complaints filed with Bureau of Consumer Protection;
IN GENERAL PROVISIONS, FURTHER PROVIDING FOR DEFINITIONS;
in management of planned community, providing for
mediation or alternative dispute resolution in planned
communities and for complaints filed with Bureau of Consumer
Protection; 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:
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SECTION 1. SECTION 3103 OF TITLE 68 OF THE PENNSYLVANIA
CONSOLIDATED STATUTES IS AMENDED BY ADDING DEFINITIONS TO READ:
§ 3103. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS SUBPART AND
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:
* * *
"ALTERNATIVE DISPUTE RESOLUTION." A PROCEDURE FOR SETTLING A
DISPUTE BY MEANS OTHER THAN LITIGATION, SUCH AS ARBITRATION OR
MEDIATION.
* * *
"UNIT OWNER IN GOOD STANDING." A UNIT OWNER WHO IS CURRENT
IN PAYMENT OF ASSESSMENTS AND FINES, UNLESS THE ASSESSMENTS OR
FINES ARE DIRECTLY RELATED TO A COMPLAINT FILED WITH THE BUREAU
OF CONSUMER PROTECTION IN THE OFFICE OF ATTORNEY GENERAL
REGARDING SECTION 3308 (RELATING TO MEETINGS), 3309 (RELATING TO
QUORUMS), 3310 (RELATING TO VOTING; PROXIES) OR 3316 (RELATING
TO ASSOCIATION RECORDS).
* * *
SECTION 2. TITLE 68 IS AMENDED BY ADDING SECTIONS TO READ:
§ 3321. Mediation or alternative ALTERNATIVE dispute resolution
in condominiums.
(a) Applicability.--
(1) A condominium established after the effective date
of this section shall 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.
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(b) Procedures.--
(1) The bylaws shall establish procedures for mediation
or AN 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 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.
(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 AN 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 AN 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).
(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 3. 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
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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 4. SECTION 4103 OF TITLE 68 IS AMENDED BY ADDING
DEFINITIONS TO READ:
§ 4103. DEFINITIONS.
SUBJECT TO ADDITIONAL DEFINITIONS CONTAINED IN SUBSEQUENT
PROVISIONS OF THIS SUBPART WHICH ARE APPLICABLE TO SPECIFIC
PROVISIONS OF THIS SUBPART, THE FOLLOWING WORDS AND PHRASES WHEN
USED IN THIS SUBPART AND IN THE DECLARATION AND BYLAWS SHALL
HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
CONTEXT CLEARLY INDICATES OTHERWISE:
* * *
"ALTERNATIVE DISPUTE RESOLUTION." A PROCEDURE FOR SETTLING A
DISPUTE BY MEANS OTHER THAN LITIGATION, SUCH AS ARBITRATION OR
MEDIATION.
* * *
"PROPRIETARY LESSEE IN GOOD STANDING." A PROPRIETARY LESSEE
WHO IS CURRENT IN PAYMENT OF ASSESSMENTS AND FINES, UNLESS THE
ASSESSMENTS OR FINES ARE DIRECTLY RELATED TO A COMPLAINT FILED
WITH THE BUREAU OF CONSUMER PROTECTION IN THE OFFICE OF ATTORNEY
GENERAL REGARDING SECTION 4308 (RELATING TO MEETINGS), 4309
(RELATING TO QUORUMS), 4310 (RELATING TO VOTING; PROXIES) OR
4317 (RELATING TO ASSOCIATION RECORDS).
* * *
Section 3 5. Title 68 is amended by adding sections to read:
§ 4322. Mediation or alternative ALTERNATIVE dispute resolution
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in cooperatives.
(a) Applicability.--
(1) A cooperative established after the effective date
of this section shall 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 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.
(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;
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proxies) and 4317 (relating to association records).
(b) Condition.--If a mediation or AN 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
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:
(1) a mediation or AN alternative dispute procedure is
not available to the proprietary lessee under the
association's declaration, bylaws, rules or regulations; or
(2) the association refuses mediation or alternative
dispute resolution under section 4322(b)(2) (relating to
mediation or alternative dispute resolution in cooperatives).
(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.
(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:
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"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 6. SECTION 5103 OF TITLE 68 IS AMENDED BY ADDING
DEFINITIONS TO READ:
§ 5103. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS SUBPART AND
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:
* * *
"ALTERNATIVE DISPUTE RESOLUTION." A PROCEDURE FOR SETTLING A
DISPUTE BY MEANS OTHER THAN LITIGATION, SUCH AS ARBITRATION OR
MEDIATION.
* * *
"UNIT OWNER IN GOOD STANDING." A UNIT OWNER WHO IS CURRENT
IN PAYMENT OF ASSESSMENTS AND FINES, UNLESS THE ASSESSMENTS OR
FINES ARE DIRECTLY RELATED TO A COMPLAINT FILED WITH THE BUREAU
OF CONSUMER PROTECTION IN THE OFFICE OF ATTORNEY GENERAL
REGARDING SECTION 5308 (RELATING TO MEETINGS), 5309 (RELATING TO
QUORUMS), 5310 (RELATING TO VOTING; PROXIES) OR 5316 (RELATING
TO ASSOCIATION RECORDS).
* * *
Section 4 7. The act TITLE 68 is amended by adding sections
to read:
§ 5321. Mediation or alternative ALTERNATIVE dispute resolution
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in planned communities.
(a) Applicability.--
(1) A planned community established after the effective
date of this section shall 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 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.
(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
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voting; proxies) .
(b) Condition.--If a mediation or AN 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
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 AN 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).
(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
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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 5 8. 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
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 6 9. This act shall take effect in 60 days.
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