Regular Session 2015-2016 House Bill 1774 P.N. 3514

PRIOR PRINTER'S NO. 2702

PRINTER'S NO. 3514

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

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 IN

SUBSTANTIAL COOPERATIVES AND FOR COMPLAINTS FILED WITH BUREAU

OF CONSUMER PROTECTION;

IN MANAGEMENT OF PLANNED COMMUNITY, PROVIDING FOR

MEDIATION 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 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.

(B) PROCEDURES.--

(1) THE BYLAWS SHALL ESTABLISH PROCEDURES FOR MEDIATION

OR RESOLUTION PROCEDURE FOR DISPUTES BETWEEN:

(I) TWO OR MORE UNIT OWNERS; OR

(II) A UNIT OWNER AND THE ASSOCIATION.

(2) MEDIATION OR DISPUTE RESOLUTION SHALL BE LIMITED TO

DISPUTES WHERE ALL PARTIES AGREE TO MEDIATION.

(3) COSTS AND FEES ASSOCIATED WITH MEDIATION OR DISPUTE

RESOLUTION, EXCLUDING ATTORNEY FEES, SHALL BE ASSESSED

EQUALLY AGAINST ALL PARTIES TO A DISPUTE.

WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS

SUBSECTION:

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"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.

§ 3322. COMPLAINTS FILED WITH BUREAU OF CONSUMER PROTECTION.

(A) GENERAL RULE.--A UNIT OWNER 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 DISPUTE 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 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 DISPUTE RESOLUTION PROCEDURE AND

THE UNIT OWNER AND ASSOCIATION HAVING NOT REACHED A

RESOLUTION.

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.

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

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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.

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 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.

(B) PROCEDURES.--

(1) THE BYLAWS SHALL ESTABLISH PROCEDURES FOR DISPUTE

RESOLUTION OR MEDIATION OF DISPUTES BETWEEN:

(I) TWO OR MORE PROPRIETARY LESSEES; OR

(II) A PROPRIETARY LESSEE AND THE ASSOCIATION.

(2) MEDIATION OR DISPUTE RESOLUTION SHALL BE LIMITED TO

DISPUTES WHERE ALL PARTIES AGREE TO MEDIATION.

(3) COSTS AND FEES ASSOCIATED WITH MEDIATION OR DISPUTE

RESOLUTION, EXCLUDING ATTORNEY FEES, SHALL BE ASSESSED

EQUALLY AGAINST ALL PARTIES TO A DISPUTE.

WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS

SUBSECTION:

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"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.

§ 4323. COMPLAINTS FILED WITH BUREAU OF CONSUMER PROTECTION.

(A) GENERAL RULE.--A PROPRIETARY LESSEE 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 DISPUTE 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

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 DISPUTE RESOLUTION

PROCEDURE AND THE PROPRIETARY LESSEE AND ASSOCIATION HAVING

NOT REACHED A RESOLUTION.

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.

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[(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.]

SECTION 5. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

§ 5321. MEDIATION 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.

(B) PROCEDURES.--

(1) THE BYLAWS SHALL ESTABLISH PROCEDURES FOR DISPUTE

RESOLUTION OR MEDIATION OF DISPUTES BETWEEN:

(I) TWO OR MORE UNIT OWNERS; OR

(II) A UNIT OWNER AND THE ASSOCIATION.

(2) MEDIATION OR DISPUTE RESOLUTION SHALL BE LIMITED TO

DISPUTES WHERE ALL PARTIES AGREE TO MEDIATION.

(3) COSTS AND FEES ASSOCIATED WITH MEDIATION OR DISPUTE

RESOLUTION, EXCLUDING ATTORNEY FEES, SHALL BE ASSESSED

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EQUALLY AGAINST ALL PARTIES TO A DISPUTE.

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.

§ 5322. COMPLAINTS FILED WITH BUREAU OF CONSUMER PROTECTION.

(A) GENERAL RULE.--A UNIT OWNER 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), 5310 (RELATING TO VOTING; PROXIES) AND

5316 (REL ATING TO ASSOCIATION RECORDS).

(B) CONDITION.--IF A MEDIATION OR DISPUTE 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 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 DISPUTE RESOLUTION PROCEDURE AND

THE UNIT OWNER AND ASSOCIATION HAVING NOT REACHED A

RESOLUTION.

CONSTRUED TO AFFECT OR IMPAIR THE RIGHT OF A UNIT OWNER,

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DECLARANT OR ASSOCIATION TO PURSUE A PRIVATE CAUSE OF ACTION OR

SEEK OTHER RELIEF, AS AUTHORIZED BY LAW.

SECTION 6. 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 7. THIS ACT SHALL TAKE EFFECT IN 60 DAYS.

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