Connecticut General Statutes
Chapter 828 - Common Interest Ownership Act
Section 47-261e. - Adoption of budgets. Special assessments. Loan agreements.

(a)(1) Except as provided in subdivision (2) of this subsection, the executive board, at least annually, shall adopt a proposed budget for the common interest community for consideration by the unit owners. Not later than thirty days after the adoption of a proposed budget, the executive board shall provide to all unit owners a summary of the proposed budget, including a statement of the amount of any reserves, and a statement of the basis on which such reserves are calculated and funded. Simultaneously, the board shall set a date not less than ten days or more than sixty days after providing the summary for either a meeting of the unit owners or a vote by ballot without a meeting to consider approval or rejection of the proposed budget. If, at that meeting or in the vote by ballot, a majority of all unit owners or any larger number specified in the declaration votes to reject the proposed budget, the proposed budget shall be rejected. If, at that meeting or in the vote by ballot, a majority of all unit owners or any larger number specified in the declaration does not vote to reject the proposed budget, the proposed budget shall be approved. The absence of a quorum at such meeting or participating in the vote by ballot shall not affect rejection or approval of the proposed budget. If a proposed budget is rejected, the budget last approved by the unit owners continues until unit owners approve a subsequent budget. If a proposed budget is not rejected in accordance with the provisions of this subdivision, the proposed budget shall be deemed approved.

(2) The executive board of an association of a common interest community, or of a master association as defined in section 47-239 exercising the powers on behalf of one or more common interest communities or for the benefit of the unit owners of one or more common interest communities, which community or communities were established prior to July 3, 1991, and have more than two thousand four hundred residential units, at least annually, shall adopt a proposed budget for the common interest community for consideration by the unit owners. Not later than thirty days after the adoption of a proposed budget, the executive board shall provide to all unit owners a summary of the proposed budget, including a statement of the amount of any reserves, and a statement of the basis on which such reserves are calculated and funded. Simultaneously, the board shall set a date not less than ten days or more than sixty days after providing the summary for either a meeting of the unit owners or a vote by ballot without a meeting to consider approval or rejection of the proposed budget. If, at that meeting or in the vote by ballot, a majority of unit owners actually voting votes to reject the proposed budget, the proposed budget shall be rejected, provided not less than thirty-three and one-third per cent of the unit owners entitled to vote on the proposed budget vote at that meeting or in the vote by ballot to reject the proposed budget. If an association's declaration or bylaws include quorum requirements for a meeting, the absence of a quorum at such meeting or participating in the vote by ballot shall not affect rejection or approval of the proposed budget. If a proposed budget is rejected, the budget last approved by the unit owners continues until unit owners approve a subsequent budget. If a proposed budget is not rejected in accordance with the provisions of this subdivision, the proposed budget shall be deemed approved.
(b) (1) Except as provided in subdivision (2) of this subsection, the executive board, at any time, may propose a special assessment. Not later than thirty days after adoption of a proposed special assessment, the executive board shall provide to all unit owners a summary of the proposed special assessment. Unless the declaration or bylaws otherwise provide, if the proposed special assessment, together with all other special and emergency assessments proposed by the executive board in the same calendar year, does not exceed fifteen per cent of the association's last adopted periodic budget for that calendar year, the proposed special assessment is effective without approval of the unit owners. Otherwise, the board shall set a date not less than ten days or more than sixty days after providing the summary for either a meeting of the unit owners or a vote by ballot without a meeting to consider approval or rejection of the proposed special assessment. If, at that meeting or in the vote by ballot, a majority of all unit owners or any larger number specified in the declaration votes to reject the special assessment, the special assessment shall be rejected. If, at such meeting or in the balloting, a majority of all unit owners or any larger number specified in the declaration does not vote to reject the special assessment, the special assessment shall be approved. The absence of a quorum at such meeting or participating in the vote by ballot shall not affect the rejection or approval of the special assessment. If a proposed special assessment is not rejected in accordance with the provisions of this subdivision, the proposed special assessment shall be deemed approved.
(2) The executive board of an association of a common interest community, or of a master association as defined in section 47-239 exercising the powers on behalf of one or more common interest communities or for the benefit of the unit owners of one or more common interest communities, which community or communities were established prior to July 3, 1991, and have more than two thousand four hundred residential units, at any time, may propose a special assessment. Not later than thirty days after adoption of a proposed special assessment, the executive board shall provide to all unit owners a summary of the proposed special assessment. Unless the declaration or bylaws otherwise provide, if the proposed special assessment, together with all other special and emergency assessments proposed by the executive board in the same calendar year, does not exceed fifteen per cent of the association's last adopted periodic budget for that calendar year, the proposed special assessment is effective without approval of the unit owners. Otherwise, the board shall set a date not less than ten days or more than sixty days after providing the summary for either a meeting of the unit owners or a vote by ballot without a meeting to consider approval or rejection of the proposed special assessment. If, at that meeting or in the vote by ballot, a majority of unit owners actually voting votes to reject the proposed special assessment, the proposed special assessment shall be rejected, provided not less than thirty-three and one-third per cent of the unit owners entitled to vote on the proposed special assessment vote at that meeting or in the vote by ballot to reject the proposed special assessment. If an association's declaration or bylaws include quorum requirements for a meeting, the absence of a quorum at such meeting or participating in the vote by ballot shall not affect the rejection or approval of the proposed special assessment. If a proposed special assessment is not rejected in accordance with the provisions of this subdivision, the proposed special assessment shall be deemed approved.
(c) If the executive board determines by a two-thirds vote that a special assessment is necessary to respond to an emergency: (1) The special assessment becomes effective immediately in accordance with the terms of the vote; (2) notice of the emergency assessment must be provided promptly to all unit owners; and (3) the executive board may spend the funds paid on account of the emergency assessment only for the purposes described in the vote.
(d) Notwithstanding any provision of the declaration or bylaws to the contrary, at least fourteen days prior to entering into any loan agreement on behalf of the association, the executive board shall (1) disclose in a record to all unit owners the amount and terms of the loan and the estimated effect of such loan on any common expense assessment, and (2) afford the unit owners a reasonable opportunity to submit comments in a record to the executive board with respect to such loan.
(e) Unless prohibited or otherwise limited in the declaration, if the executive board proposes to enter into a loan agreement on behalf of the association and to assign its right to future income as security for such loan pursuant to subdivision (14) of subsection (a) of section 47-244, then, in addition to satisfying the requirements of subsection (d) of this section, unit owners of units to which at least a majority of the votes in the association are allocated, or any larger percentage or fraction stated in the declaration, must vote in favor of or agree to such assignment.
(P.A. 09-225, S. 37; P.A. 10-186, S. 18; P.A. 13-182, S. 1; P.A. 14-215, S. 8; P.A. 15-14, S. 15.)
History: P.A. 09-225 effective July 1, 2010; P.A. 10-186 amended Subsec. (a) to add “a statement of the amount of” re reserves, amended Subsecs. (a) and (b) to replace “otherwise” with provisions re if, at meeting or in vote by ballot, majority of unit owners or larger specified number does not vote to reject budget or special assessment, amended Subsec. (b) to substitute “special assessment” for “budget”, and made technical and conforming changes in Subsecs. (a) and (b), effective July 1, 2010; P.A. 13-182 amended Subsec. (a) by designating existing provisions as Subdiv. (1) and amending same to add “Except as provided in subdivision (2) of this subsection,”, add “If a proposed budget is not rejected in accordance with the provisions of this subdivision, the proposed budget shall be deemed approved.” and make technical changes, and by adding Subdiv. (2) re adoption of proposed budgets in common interest communities established prior to July 3, 1991, which have more than 2,400 residential units, and amended Subsec. (b) by designating existing provisions as Subdiv. (1) and amending same to add “Except as provided in subdivision (2) of this subsection,”, add “If a proposed special assessment is not rejected in accordance with the provisions of this subdivision, the proposed special assessment shall be deemed approved.” and make technical changes, and by adding Subdiv. (2) re adoption of proposed special assessments in common interest communities established prior to July 3, 1991, which have more than 2,400 residential units; P.A. 14-215 amended Subsecs. (a)(2) and (b)(2) by adding “actually voting” re votes to reject and made a technical change in Subsec. (b)(2), effective June 13, 2014; P.A. 15-14 made technical changes in Subsec. (b)(1) and (2).

Structure Connecticut General Statutes

Connecticut General Statutes

Title 47 - Land and Land Titles

Chapter 828 - Common Interest Ownership Act

Section 47-200. - Short title: Common Interest Ownership Act.

Section 47-201. - Applicability of chapter.

Section 47-202. - Definitions.

Section 47-203. - Variation by agreement and waiver of rights prohibited. Exceptions.

Section 47-204. - Separate titles and taxation. Recording of certificate by cooperative. Conveyance of interest in cooperative.

Section 47-205. - Applicability of real property use laws to conversion of buildings to common interest ownership.

Section 47-206. - Eminent domain.

Section 47-207. - Supplemental general principles of law applicable.

Section 47-208. - Construction against implicit repeal.

Section 47-209. - Severability.

Section 47-210. - Unconscionable contracts or contract clauses. Leases involving land or facilities in residential common interest communities that are presumed to be unconscionable.

Section 47-211. - Obligation of good faith.

Section 47-212. - Remedies to be liberally administered.

Section 47-213. - Adjustment of dollar amount.

Section 47-213a. - Relationship of chapter to Electronic Signatures in Global and National Commerce Act.

Section 47-214. - Applicability of chapter and amendments thereto to common interest communities.

Section 47-215. - Applicability to nonresidential, mixed use and small common interest communities, limited expense liability planned communities and common interest communities with a conversion building.

Section 47-216. - Applicability to preexisting common interest communities.

Section 47-217. - Exception for certain preexisting common interest communities.

Section 47-218. - Applicability to amendments to governing instruments.

Section 47-219. - Applicability to out-of-state common interest communities.

Section 47-219a. - Arrangements re real property costs. Separate common interest community not created thereby.

Section 47-219b. - Exemption re covenant to share costs or other obligations.

Section 47-220. - Creation of common interest community.

Section 47-221. - Unit boundaries.

Section 47-222. - Construction and validity of declaration, bylaws and rules. Marketability of title. Recording of surveys or plans.

Section 47-223. - Description of unit.

Section 47-224. - Contents of declaration.

Section 47-225. - Leasehold common interest communities.

Section 47-226. - Allocation of interests.

Section 47-227. - Limited common elements.

Section 47-228. - Surveys and plans.

Section 47-229. - Exercise of development rights.

Section 47-230. - Alterations of units.

Section 47-230a. - Display of object on entry door or entry door frame which is motivated by observance of religious practice or belief. Restrictions.

Section 47-231. - Relocation of unit boundaries.

Section 47-232. - Subdivision of units.

Section 47-233. - Monuments as boundaries.

Section 47-234. - Use for sales purposes.

Section 47-235. - Easement and use rights.

Section 47-236. - Amendment of declaration or bylaws.

Section 47-237. - Termination of common interest community.

Section 47-238. - Rights of secured lenders.

Section 47-239. - Master associations.

Section 47-239a. - Termination and dissolution of master association. Establishment of nonstock corporation.

Section 47-240. - Merger or consolidation of common interest communities.

Section 47-241. - Addition of unspecified real property.

Section 47-241a. - Master planned communities.

Section 47-242. - Addition of land or units to limited equity cooperative.

Section 47-243. - Organization of unit owners' association.

Section 47-244. - Powers and duties of unit owners' association.

Section 47-244a. - Unincorporated unit owners' association's statutory agent for service.

Section 47-244b. - Service of process on statutory agent.

Section 47-245. - Executive board members and officers. Duties. Period of declarant control: Delivery of property and documents by declarant; current financial statement. Prohibitions re elections of executive board members.

Section 47-246. - Transfer of special declarant rights. Obligations and liabilities.

Section 47-247. - Termination of contracts and leases.

Section 47-248. - Bylaws.

Section 47-249. - Upkeep of common interest community. Liability for expenses.

Section 47-250. - Meetings. Rules.

Section 47-251. - Quorum.

Section 47-252. - Voting. Proxies. Ballots.

Section 47-253. - Liability.

Section 47-254. - Conveyance or encumbrance of common elements.

Section 47-255. - Insurance.

Section 47-256. - Surplus funds.

Section 47-257. - Assessments for common expenses. Assessments due to wilful misconduct, failure to comply with standards or gross negligence.

Section 47-258. - Lien for assessments and other sums due association. Enforcements.

Section 47-259. - Other liens.

Section 47-260. - Association records. Copies. Fees.

Section 47-261. - Association as trustee.

Section 47-261a. - Basic education program for association members and management.

Section 47-261b. - Rules.

Section 47-261c. - Notice to unit owners.

Section 47-261d. - Removal of officers and directors.

Section 47-261e. - Adoption of budgets. Special assessments. Loan agreements.

Section 47-261f. - Litigation involving declarant.

Section 47-261g. - Electric vehicle charging station in unit parking space or limited common element parking space.

Section 47-262. - Applicability of part. Exceptions to requirement of public offering statement or resale certificate.

Section 47-263. - Public offering statement requirements. Liability.

Section 47-264. - Public offering statement. General provisions and requirements.

Section 47-265. - Requirements for public offering statement when community is subject to development rights.

Section 47-266. - Requirements for public offering statement when ownership or occupancy is by time shares.

Section 47-267. - Requirements for public offering statement when community contains conversion building.

Section 47-268. - Requirements for public offering statement when interest in community is security.

Section 47-269. - Purchaser's right to cancel.

Section 47-270. - Resales of units.

Section 47-271. - Escrow of deposits. Distribution of interest.

Section 47-272. - Release of liens.

Section 47-273. - Rights of tenants in conversion buildings.

Section 47-274. - Express warranties of quality.

Section 47-275. - Implied warranties of quality.

Section 47-276. - Exclusion or modification of implied warranties of quality.

Section 47-277. - Action for breach of warranty. Statute of limitations.

Section 47-278. - Cause of action to enforce chapter, declaration or bylaws. Attorney's fees and costs. Alternative dispute resolution. Hearings before executive board.

Section 47-279. - Labeling of promotional material.

Section 47-280. - Declarant's obligation to complete and restore.

Section 47-281. - Substantial completion of units required.

Section 47-282. - Statement of policy.

Section 47-283. - Definitions.

Section 47-284. - Conversion tenant's right to conversion notice and public offering statement.

Section 47-285. - Conversion tenant's right to purchase converted unit.

Section 47-286. - Conversion tenant's right to terminate lease and abandon unit.

Section 47-287. - Conversion tenant's right to relocation payment.

Section 47-288. - Registration of common interest community. Notice to Department of Housing.

Section 47-289. - Rent increases of conversion tenants.

Section 47-290. - Eviction of conversion tenants.

Section 47-291. - Unenforceable lease provisions.

Section 47-292. - Tenant's cause of action.

Section 47-293. - Applicability of protection afforded conversion tenants.

Section 47-294. - Complaints of violations. Investigations. Enforcement action by Attorney General.

Section 47-295. - Regulations.