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PRINTER'S NO. 3886
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2568
Session of
2020
INTRODUCED BY GAYDOS, MOUL, BROWN, HELM, NELSON, JOZWIAK, JONES,
HENNESSEY AND STAATS, JUNE 8, 2020
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 8, 2020
AN ACT
Amending Title 68 (Real and Personal Property) of the
Pennsylvania Consolidated Statutes, in protection of
purchasers relating to condominiums, further providing for
public offering statement and general provisions and for
resales of units; in protection of cooperative interest
purchasers relating to cooperatives, further providing for
public offering statement and general provisions and for
resales of cooperative interests; and, in protection of
purchasers relating to planned communities, further providing
for public offering statement and general provisions and for
resales of units.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3402(a) of Title 68 of the Pennsylvania
Consolidated Statutes is amended by adding paragraphs to read:
§ 3402. Public offering statement; general provisions.
(a) General rule.--Except as provided in subsection (b), a
public offering statement must contain or fully and accurately
disclose:
* * *
(27) A copy of the provisions of this subpart.
(28) A signed statement by the association indicating
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whether this subpart applies based on the effective date of
this subpart, the date on which the condominium was
established and any action taken to become subject to this
subpart.
* * *
Section 2. Section 3407(a) of Title 68 is amended to read:
§ 3407. Resales of units.
(a) Information supplied by unit owner.--In the event of a
resale of a unit by a unit owner other than a declarant, the
unit owner shall furnish to a purchaser before execution of any
contract for sale of a unit, or otherwise before conveyance, a
copy of the declaration (other than the plats and plans), the
bylaws, the rules or regulations of the association, the
provisions of this subpart and a certificate containing:
(1) A statement disclosing the effect on the proposed
disposition of any right of first refusal or other restraint
on the free alienability of the unit.
(2) A statement setting forth the amount of the monthly
common expense assessment and any unpaid common expense or
special assessment currently due and payable from the selling
unit owner and any surplus fund credits to be applied with
regard to the unit pursuant to section 3313 (relating to
surplus funds).
(3) A statement of any other fees payable by unit
owners.
(4) A statement of any capital expenditures proposed by
the association for the current and two next succeeding
fiscal years.
(5) A statement of the amount of any reserves for
capital expenditures and of any portions of those reserves
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designated by the association for any specified project.
(6) The most recent regularly prepared balance sheet and
income and expense statement, if any, of the association.
(7) The current operating budget of the association.
(8) A statement of any judgments against the association
and the status of any pending suits to which the association
is a party.
(9) A statement describing any insurance coverage
provided for the benefit of unit owners.
(10) A statement as to whether the executive board has
knowledge that any alterations or improvements to the unit or
to the limited common elements assigned thereto violate any
provision of the declaration.
(11) A statement as to whether the executive board has
knowledge of any violations of applicable governmental
requirements or knowledge of the existence of any hazardous
conditions pursuant to section 3402(a)(26) (relating to
public offering statement; general provisions) or with
respect to the unit, the limited common elements assigned
thereto or any other portion of the condominium.
(12) A statement of the remaining term of any leasehold
estate affecting the condominium and the provisions governing
any extension or renewal thereof.
(13) A statement as to whether the declaration provides
for cumulative voting or class voting.
(14) A statement as to whether an agreement to terminate
the condominium has been submitted to the unit owners for
approval and remains outstanding.
(15) A statement of whether the condominium is a master
association or is part of a master association or could
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become a master association or part of a master association.
(16) A statement describing which units, if any, may be
owned in time-share estates and the maximum number of time-
share estates that may be created in the condominium.
(17) A statement of whether the declarant retains the
special declarant right to cause a merger or consolidation of
the condominium and, if so, the information describing such
right which was supplied by the declarant pursuant to section
3205(13) (relating to contents of declaration; all
condominiums), if any.
(18) A signed statement by the association indicating
whether this subpart applies based on the effective date of
this subpart, the date on which the association was
established and any action taken to become subject to this
subpart.
* * *
Section 3. Section 4403(a) of the Title 68 is amended by
adding paragraphs to read:
§ 4403. Public offering statement; general provisions.
(a) General rule.--Except as provided in subsection (b), a
public offering statement must contain or fully and accurately
disclose:
* * *
(28) A copy of the provisions of this subpart.
(29) A signed statement by the association indicating
whether this subpart applies based on the effective date of
this subpart, the date on which the cooperative was
established and any action taken to become subject to this
subpart.
* * *
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Section 4. Section 4409(a) of Title 68 is amended to read:
§ 4409. Resales of cooperative interests.
(a) Information supplied by proprietary lessee.--Except in
the case of a sale where delivery of a public offering statement
is required or unless the transaction is exempt under section
4401(b) (relating to applicability; waiver), a proprietary
lessee shall furnish to a purchaser before execution of any
contract of sale of a cooperative interest or, if there is no
contract of sale, before the time of conveyance a copy of the
declaration (other than the plats and plans), the bylaws and the
rules or regulations of the association, including all
amendments to such documents to the date of their delivery to
the purchaser, the provisions of this subpart and a certificate
containing:
(1) A statement disclosing the effect on the proposed
disposition of any right of first refusal or other restraint
on the free alienability of the cooperative interest.
(2) A statement setting forth the amount of the monthly
common expense assessment and any unpaid common expense or
special assessment currently due and payable from the selling
proprietary lessee and any surplus fund credits to be applied
with regard to the cooperative interest pursuant to section
4314(h) (relating to assessments for common expenses).
(3) A statement of any other fees payable by proprietary
lessees.
(4) A statement of any capital expenditures anticipated
by the association for the current and two next succeeding
fiscal years.
(5) A statement of the amount of any reserves for
capital expenditures and of any portions of those reserves
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designated by the association for any specified projects.
(6) The most recent regularly prepared balance sheet and
income and expense statement, if any, of the association.
(7) The current operating budget of the association.
(8) A statement of any unsatisfied judgments against the
association and the status of any pending suits in which the
association is a defendant.
(9) A statement describing any insurance coverage
provided for the benefit of proprietary lessees.
(10) A statement as to whether the executive board has
knowledge that any alterations or improvements to the unit or
to the limited common elements assigned thereto violate any
provision of the declaration.
(11) A statement as to whether the executive board has
knowledge of any violations of the health or building codes
with respect to the unit, the limited common elements
assigned thereto or any other portion of the cooperative.
(12) A statement of the remaining term of any leasehold
estate affecting the cooperative and the provisions governing
any extension or renewal thereof.
(13) Except where no public offering statement was
prepared, a statement that the public offering statement and
any amendments thereto are records of the association
available for inspection by the purchaser.
(14) The most recent statement given to the proprietary
lessee by the association stating the amount of the
cooperative real estate taxes and mortgage or other interest
allocated to the cooperative interest being sold.
(15) A statement of any restrictions in the declaration
affecting the amount that may be received by a proprietary
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lessee upon sale, condemnation or casualty loss to the unit
or the cooperative or termination of the cooperative.
(16) A statement as to whether the declaration provides
for cumulative or class voting.
(17) A statement as to whether an agreement to terminate
the cooperative has been submitted to the proprietary lessees
for approval and remains outstanding.
(18) A statement as to whether the executive board has
knowledge of any violations of applicable governmental
requirements or knowledge of the existence of any hazardous
conditions (section 4403(a)(27)) with respect to the unit,
the limited common elements assigned thereto or any other
portion of the cooperative.
(19) A statement of whether the cooperative is a master
association or is part of a master association or could
become a master association or part of a master association.
(20) A statement describing the ownership of cooperative
interests, if any, or the occupancy of units, if any, which
may be in time shares and the maximum number of time-share
estates that may be created in the cooperative.
(21) A statement of whether the declarant retains the
special declarant right to cause a merger or consolidation of
the cooperative and, if so, the information describing such
right which was supplied by the declarant pursuant to section
4205 (relating to contents of declaration), if any.
(22) A signed statement by the association indicating
whether this subpart applies based on the effective date of
this subpart, the date on which the association was
established and any action taken to become subject to this
subpart.
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* * *
Section 5. Section 5402(a) of Title 68 is amended by adding
paragraphs to read:
§ 5402. Public offering statement; general provisions.
(a) General rule.--Except as provided in subsection (b), a
public offering statement must contain or fully and accurately
disclose:
* * *
(30) A copy of the provisions of this subpart.
(31) A signed statement by the association indicating
whether this subpart applies based on the effective date of
this subpart, the date on which the planned community was
established and any action taken to become subject to this
subpart.
* * *
Section 6. Section 5407(a) of Title 68 is amended to read:
§ 5407. Resales of units.
(a) Information supplied by unit owner.--In the event of a
resale of a unit by a unit owner other than a declarant, the
unit owner shall furnish to a purchaser before execution of any
contract for sale of a unit or otherwise before conveyance a
copy of the declaration other than the plats and plans, the
bylaws, the rules or regulations of the association, the
provisions of this subpart and a certificate containing:
(1) A statement disclosing the effect on the proposed
disposition of any right of first refusal or other restraint
on the free alienability of the unit.
(2) A statement setting forth the amount of the monthly
common expense assessment and any unpaid common expense or
special assessment currently due and payable from the selling
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unit owner and any surplus fund credits to be applied with
regard to the unit pursuant to section 5313 (relating to
surplus funds).
(3) A statement of any other fees payable by unit
owners.
(4) A statement of any capital expenditures proposed by
the association for the current and two next succeeding
fiscal years.
(5) A statement of the amount of any reserves for
capital expenditures and of any portions of those reserves
designated by the association for any specified project.
(6) The most recent regularly prepared balance sheet and
income and expense statement, if any, of the association.
(7) The current operating budget of the association.
(8) A statement of any judgments against the association
and the status of any pending suits to which the association
is a party.
(9) A statement describing any insurance coverage
provided for the benefit of unit owners.
(10) A statement as to whether the executive board has
knowledge that any alterations or improvements to the unit or
to the limited common elements assigned thereto violate any
provision of the declaration.
(11) A statement as to whether the executive board has
knowledge of any violations of applicable governmental
requirements or knowledge of the existence of any hazardous
conditions pursuant to section 5402(a)(27) (relating to
public offering statement; general provisions) with respect
to the unit, the limited common elements assigned to the unit
or any other portion of the planned community.
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(12) A statement of the remaining term of any leasehold
estate affecting the planned community and the provisions
governing any extension or renewal thereof.
(13) A statement as to whether the declaration provides
for cumulative voting or class voting.
(14) A statement as to whether an agreement to terminate
the planned community has been submitted to the unit owners
for approval and remains outstanding.
(15) A statement of whether the planned community is a
master association or is part of a master association or
could become a master association or part of a master
association.
(16) A statement describing which units, if any, may be
owned in time-share estates and the maximum number of time-
share estates that may be created in the planned community.
(17) A statement of whether the declarant retains the
special declarant right to cause a merger or consolidation of
the planned community and, if so, the information describing
such right which was supplied by the declaration pursuant to
section 5205(13) (relating to contents of declaration; all
planned communities), if any.
(18) A signed statement by the association indicating
whether this subpart applies based on the effective date of
this subpart, the date on which the association was
established and any action taken to become subject to this
subpart.
* * *
Section 7. This act shall take effect in 60 days.
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