PRINTER'S NO. 2035
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1795
Session of
2021
INTRODUCED BY R. BROWN, RADER, HELM, M. MACKENZIE AND CIRESI,
AUGUST 17, 2021
REFERRED TO COMMITTEE ON URBAN AFFAIRS, AUGUST 17, 2021
AN ACT
Amending Title 68 (Real and Personal Property) of the
Pennsylvania Consolidated Statutes, in general provisions
relating to condominiums, further providing for definitions;
in management of the condominium, further providing for
executive board members and officers, for bylaws and for
meetings; in protection of purchasers, further providing for
effect of violations on rights of action; in general
provisions relating to cooperatives, further providing for
definitions; in creation, alteration and termination of
cooperatives, further providing for master associations; in
management of cooperatives, further providing for bylaws and
for meetings; in protection of cooperative interest
purchasers, further providing for effect of violations on
rights of action; in general provisions relating to planned
communities, further providing for definitions; in creation,
alteration and termination of planned communities, further
providing for master associations; in management of planned
community, further providing for bylaws and for meetings;
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. Section 3103 of Title 68 of the Pennsylvania
Consolidated Statutes is amended by adding a definition 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
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them in this section unless specifically provided otherwise or
unless the context clearly indicates otherwise:
* * *
"Independent reviewer." A person who is selected by the
declarant or a majority of the unit owners of a condominium and
satisfies all of the following:
(1) Holds a certificate issued by the Commonwealth as a
certified public accountant, is licensed to practice law in
this Commonwealth or is a vote management system.
(2) Is not a unit owner, directly or indirectly.
(3) Has no family relationship with the declarant, a
unit owner or a condominium manager.
(4) Has no financial interest shared with the declarant,
a unit owner or a condominium manager.
(5) If compensated by the declarant, a director, the
association or a condominium manager, has disclosed the terms
of the compensation to all unit owners.
* * *
Section 2. Section 3303(d) and (e) of Title 68 are amended
and the section is amended by adding a subsection to read:
§ 3303. Executive board members and officers.
* * *
(d) Election of members during transfer of declarant
control.--
(1) Not later than 60 days after conveyance of 25% of
the units to unit owners other than a declarant, not less
than 25% of the members of the executive board shall be
elected by unit owners other than the declarant.
(2) Not later than 60 days after conveyance of 50% of
the units to unit owners other than a declarant, not less
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than 33 1/3% of the members of the executive board shall be
elected by unit owners other than the declarant.
(3) A vote by a unit owner must be submitted by the unit
owner to an independent reviewer who shall tally the results
of the election and certify the results to the declarant, the
executive board and unit owners. All votes by unit owners
under this paragraph shall be submitted to the independent
reviewer in either an electronic or a paper format. The
interchangeable submission of votes by unit owners in an
electronic and a paper format in the same election shall be
prohibited. All votes in the same community shall be
submitted in the same form for the same election. This
paragraph shall only apply to a condominium with at least 25
units.
(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
may be called for such purpose by any member of the executive
board elected by the unit owners or, if there is no such
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member of the executive board, the unit owners entitled to
cast at least 10% of the votes in the association.
(3) A vote by a unit owner must be submitted by the unit
owner to an independent reviewer who shall tally the results
of the election and certify the results to the executive
board and unit owners. All votes by unit owners under this
paragraph shall be submitted to the independent reviewer in
either an electronic or a paper format. The interchangeable
submission of votes by unit owners in an electronic and a
paper format in the same election shall be prohibited. All
votes in the same community shall be submitted in the same
form for the same election. This paragraph shall only apply
to a condominium with at least 25 units.
* * *
(g) Penalties.--A person who attempts to interfere with the
votes or election process under subsection (d) or (e) is guilty
of a misdemeanor of the first degree a nd, upon conviction, shall
be sentenced to pay a fine not exceeding $10,000 or to undergo
imprisonment of not more than five years, or both, in the
discretion of the court.
Section 3. Sections 3306(a)(6), 3308 and 3412 of Title 68
are amended to read:
§ 3306. Bylaws.
(a) Mandatory provisions.--The bylaws of the association
must provide for:
* * *
(6) The method of amending the bylaws. The following
apply:
(i) The bylaws may be amended only by vote or
agreement of unit owners of units to which at least:
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(A) sixty-seven percent of the votes in the
association is allocated as provided under section
3208 (relating to allocation of common element
interests, votes and common expense liabilities);
(B) any larger majority as specified in the
bylaws; or
(C) a smaller number as specified in the bylaws
if all of the units are restricted exclusively to
nonresidential use.
(ii) The vote may be taken only at a scheduled
meeting as provided under section 3308 (relating to
meetings) that was advertised seven days in advance to
the unit owners. Absentee voting shall be permitted to
unit owners provided that the ballots must be submitted
to an independent reviewer during a time period
consistent with the absentee voting provisions under
Article XIII of the act of June 3, 1937 (P.L.1333,
No.320), known as the Pennsylvania Election Code.
* * *
§ 3308. Meetings.
(a) Association meetings.--The bylaws must require that
meetings of the association be held at least once each year and
provide for special meetings. The bylaws must specify which of
the association's officers, not less than ten nor more than 60
days in advance of any meeting, shall cause notice to be hand
delivered or sent prepaid by United States mail to the mailing
address of each unit or to any other mailing address designated
in writing by the unit owner. The notice of any meeting must
state the time and place of the meeting and the items on the
agenda, including the general nature of any proposed amendment
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to the declaration or bylaws, any budget or assessment changes
and, where the declaration or bylaws require approval of unit
owners, any proposal to remove an executive board member or
officer.
(b) Election meetings.--The bylaws must require that a
special meeting of the association be held not later than seven
days before the election of an executive board member or officer
of the association to allow the unit owners to meet each
candidate for an executive board position or officer position. A
special meeting under this subsection may be held virtually or
in person. Each candidate for an executive board position or
officer position with the association shall have equal time to
address the unit owners during a special meeting under this
subsection.
§ 3412. Effect of violations on rights of action.
(a) General rule.--If a declarant or any other person
subject to this subpart violates any provision thereof or any
provision of the declaration or bylaws[, any]:
(1) Any person or class of persons adversely affected by
the violation has a claim for appropriate relief.
(2) The violation shall constitute an unfair trade
practice as defined in and may be enforced by the Office of
Attorney General under the act of December 17, 1968
(P.L.1224, No.387), known as the Unfair Trade Practices and
Consumer Protection Law.
(b) Punitive damages.--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 a
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definition 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:
* * *
"Independent reviewer." A person who is selected by the
declarant or a majority of the proprietary lessees of a
cooperative and satisfies all of the following:
(1) Holds a certificate as a certified public accountant
issued by the Commonwealth, is licensed to practice law in
this Commonwealth or is a vote management system.
(2) Is not a proprietary lessee of the cooperative,
directly or indirectly.
(3) Has no family relationship with a proprietary lessee
of the cooperative or a cooperative manager.
(4) Has no financial interest shared with a proprietary
lessee of the cooperative or a cooperative manager.
(5) If compensated by the declarant, a director, the
association or a cooperative manager, has disclosed the terms
of the compensation to all proprietary lessees of the
cooperative.
* * *
Section 5. Section 4219 of Title 68 is amended by adding
subsections to read:
§ 4219. Master associations.
* * *
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(e.1) Independent reviewer.--The certificate of
incorporation or other instrument creating the master
association and the declaration of each cooperative, the powers
of which are assigned by the declaration or delegated to the
master association, shall provide that a vote by a proprietary
lessee in an election of the executive board of an association
must be submitted by the proprietary lessee to an independent
reviewer who shall tally the results of the election and certify
the results to the executive board and proprietary lessees. All
votes by proprietary lessees under this subsection shall be
submitted to the independent reviewer in either an electronic or
a paper format. The interchangeable submission of votes by
proprietary lessees in an electronic and a paper format in the
same election shall be prohibited. All votes in the same
community shall be submitted in the same form for the same
election. This subsection shall only apply to a cooperative with
at least 25 units.
* * *
(h) Penalties.--A person who attempts to interfere with the
votes or election process under subsection (e.1) is guilty of a
misdemeanor of the first degree and, upon conviction, shall be
sentenced to pay a fine not exceeding $10,000 or to undergo
imprisonment of not more than five years, or both, in the
discretion of the court.
Section 6. Sections 4306(a)(6), 4308 and 4415 of Title 68
are amended to read:
§ 4306. Bylaws.
(a) Mandatory provisions.--The bylaws of the association
must provide for:
* * *
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(6) The method of amending the bylaws. The following
apply:
(i) The bylaws may be amended only by vote or
agreement of proprietary lessees of cooperative interests
to which at least 67% of the votes in the association are
allocated as provided under section 4207 (relating to
allocation of ownership interests, votes and common
expense liabilities) or any larger majority the
declaration specifies. The declaration may specify a
smaller number only if all of the units are restricted
exclusively to nonresidential use.
(ii) The vote may be taken only at a scheduled
meeting as provided under section 4308 (relating to
meetings) that was advertised seven days in advance to
the proprietary lessees. Absentee voting shall be
permitted to proprietary lessees provided that the
ballots must be submitted to an independent reviewer
during a time period consistent with the absentee voting
provisions under Article XIII of the act of June 3, 1937
(P.L.1333, No.320), known as the Pennsylvania Election
Code.
* * *
§ 4308. Meetings.
(a) Association meetings.--A meeting of the association must
be held at least once each year. Special meetings of the
association may be called by the president, a majority of the
executive board or by 20%, or any lower percentage specified in
the bylaws, of the proprietary lessees. Not less than ten nor
more than 60 days in advance of any meeting, the secretary or
other officer specified in the bylaws shall cause notice to be
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hand delivered or sent prepaid by United States mail to the
mailing address of each unit or to any other mailing address
designated in writing by the proprietary lessee. The notice of
any meeting must state the time and place of the meeting and the
items on the agenda, including the general nature of any
proposed amendment to the declaration or bylaws, any budget or
assessment changes and, where the declaration or bylaws require
approval of the proprietary lessees, any proposal to remove an
executive board member or officer.
(b) Election meetings.--The bylaws must require that a
special meeting of the association be held not later than seven
days before the election of an executive board member or officer
of the association to allow the proprietary lessees to meet each
candidate for an executive board position or officer position. A
special meeting under this subsection may be held virtually or
in person. Each candidate for an executive board position or
officer position with the association shall have equal time to
address the proprietary lessees during a special meeting under
this subsection.
§ 4415. Effect of violations on rights of action.
(a) General rule.--If a declarant or any other person
subject to this subpart fails to comply with any provision of
this subpart or any provision of the declaration or bylaws[,
any]:
(1) Any person or class of persons adversely affected by
the failure to comply has a claim for appropriate relief.
(2) The violation shall constitute an unfair trade
practice as defined in and may be enforced by the Office of
Attorney General under the act of December 17, 1968
(P.L.1224, No.387), known as the Unfair Trade Practices and
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Consumer Protection Law.
(b) Punitive damages.--Punitive damages may be awarded for a
willful failure to comply with this subpart. The court, in an
appropriate case, may award reasonable attorney fees.
Section 7. Section 5103 of Title 68 is amended by adding a
definition 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:
* * *
"Independent reviewer." A person who is selected by the
declarant or a majority of the unit owners of a planned
community and satisfies all of the following:
(1) Holds a certificate as a certified public accountant
issued by the Commonwealth, is licensed to practice law in
this Commonwealth or is a vote management system.
(2) Is not a unit owner of the planned community,
directly or indirectly.
(3) Has no family relationship with a unit owner of the
planned community or a planned community manager.
(4) Has no financial interest shared with a unit owner
of the planned community or a planned community manager.
(5) If compensated by the declarant, a director, the
association or a planned community manager, has disclosed the
terms of the compensation to all unit owners of the planned
community.
* * *
Section 8. Section 5222 of Title 68 is amended by adding
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subsections to read:
§ 5222. Master associations.
* * *
(e.1) Independent reviewer.--The instrument creating the
master association and the declaration of each planned community
of the organizational documents of other associations, the
powers of which are assigned pursuant to the declaration or
organizational documents or delegated to the master association,
shall also provide that a vote by a unit owner in an election of
the members of the master association governing body must be
submitted by the unit owner to an independent reviewer who shall
tally the results of the election and certify the results to the
executive board and unit owner. All votes by unit owners under
this subsection shall be submitted to the independent reviewer
in either an electronic or a paper format. The interchangeable
submission of votes by unit owners in an electronic and a paper
format in the same election shall be prohibited. All votes in
the same community shall be submitted in the same form for the
same election. This subsection shall only apply to a planned
community with at least 25 units.
* * *
(h) Penalties.--A person who attempts to interfere with the
votes or election process under subsection (e.1) is guilty of a
misdemeanor of the first degree and, upon conviction, shall be
sentenced to pay a fine not exceeding $10,000 or to undergo
imprisonment of not more than five years, or both, in the
discretion of the court.
Section 9. Sections 5306(a)(6), 5308 and 5412 of Title 68
are amended to read:
§ 5306. Bylaws.
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(a) Mandatory provisions.--The bylaws of the association
shall provide for all of the following:
* * *
(6) The method of amending the bylaws. The following
apply:
(i) The bylaws may be amended only by vote or
agreement of unit owners of units to which at least:
(A) sixty-seven percent of votes in the
association are allocated as provided under section
5208 (relating to allocation of votes and common
expense liabilities);
(B) a larger percentage of the votes in the
association as specified in the bylaws; or
(C) a smaller percentage of the votes in the
association as specified in the bylaws if all units
are restricted exclusively to nonresidential use.
(ii) The vote may be taken only at a scheduled
meeting as provided under section 5308 (relating to
meetings) that was advertised seven days in advance to
the unit owners. Absentee voting shall be permitted to
unit owners provided that the ballots must be submitted
to an independent reviewer during a time period
consistent with the absentee voting provisions under
Article XIII of the act of June 3, 1937 (P.L.1333,
No.320), known as the Pennsylvania Election Code.
* * *
§ 5308. Meetings.
(a) Association meetings.--The bylaws shall require that
meetings of the association be held at least once each year and
shall provide for special meetings. The bylaws shall specify
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which of the association's officers, not less than ten nor more
than 60 days in advance of any meeting, shall cause notice to be
hand delivered or sent prepaid by United States mail to the
mailing address of each unit or to any other mailing address
designated in writing by the unit owner. The notice of any
meeting must state the time and place of the meeting and the
items on the agenda, including the general nature of any
proposed amendment to the declaration or bylaws; any budget or
assessment changes; and, where the declaration or bylaws require
approval of unit owners, any proposal to remove a director or
officer.
(b) Election meetings.--The bylaws shall require that a
special meeting of the association be held not later than seven
days before the election of an executive board member or officer
of the association to allow the unit owners to meet each
candidate for an executive board position or officer position. A
special meeting under this subsection may be held virtually or
in person. Each candidate for an executive board position or
officer position with the association shall have equal time to
address the unit owners during a special meeting under this
subsection.
§ 5412. Effect of violations on rights of action.
(a) General rule.--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]:
(1) Any person or class of persons adversely affected by
the violation has a claim for appropriate relief.
(2) The violation shall constitute an unfair trade
practice as defined in and may be enforced by the Office of
Attorney General under the act of December 17, 1968
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(P.L.1224, No.387), known as the Unfair Trade Practices and
Consumer Protection Law.
(b) Punitive damages.--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 10. This act shall take effect in 60 days.
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