Bill Text: OH HB371 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To require certain unit owners association managers to hold a real estate broker's license, to make changes to the board meetings, record retention, and budget procedure requirements of the Condominium Law, and to establish a registry of condominium developments and the Ohio Condominium Dispute Resolution Commission.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2013-12-04 - To Financial Institutions, Housing and Urban Development [HB371 Detail]

Download: Ohio-2013-HB371-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 371

Representatives Grossman, Perales 

Cosponsor: Representative Anielski 

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A BILL

To amend sections 5311.01, 5311.08, 5311.081,

1

5311.09, 5311.091, and 5311.22 and to enact

2

sections 5311.082, 5311.083, 5311.15, 5311.28 to

3

5311.33, and 5311.99 of the Revised Code to

4

require certain unit owners association managers

5

to hold a real estate broker's license, to make

6

changes to the board meetings, record retention,

7

and budget procedure requirements of the

8

Condominium Law, and to establish a registry of

9

condominium developments and the Ohio Condominium

10

Dispute Resolution Commission.

11

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 5311.01, 5311.08, 5311.081,	12
5311.09, 5311.091, and 5311.22 be amended and sections 5311.082,	13
5311.083, 5311.15, 5311.28, 5311.29, 5311.30, 5311.31, 5311.32,	14
5311.33, and 5311.99 of the Revised Code be enacted to read as	15
follows:	16

Sec. 5311.01. As used in this chapter, except as otherwise	17
provided:	18

(A) "Agent" means any person who represents a developer or	19
who acts for or on behalf of a developer in selling or offering to	20
sell any ownership interest in a condominium development. "Agent"	21
does not include an attorney whose representation of a developer	22
consists solely of rendering legal services.	23

(B) "Additional property" means land, including surface and	24
air rights, or improvements to land that are described in an	25
original declaration and that may be added in the future to an	26
expandable condominium property.	27

(C) "Affiliate of a developer" means any person who controls	28
a developer or is controlled by a developer. For the purposes of	29
this division:	30

(1) A person "controls" a developer if any of the following	31
applies:	32

(a) The person is a general partner, officer, member,	33
manager, director, or employer of the developer.	34

(b) The person owns, controls, holds with power to vote, or	35
holds proxies representing more than twenty per cent of the voting	36
interest in the developer, doing so either directly or indirectly,	37
acting in concert with one or more other persons, or through one	38
or more subsidiaries.	39

(c) The person controls, in any manner, the election of a	40
majority of the developer's directors.	41

(d) The person has contributed more than twenty per cent of	42
the developer's capital.	43

(2) A person "is controlled by" a developer if any of the	44
following applies:	45

(a) The developer is a general partner, member, manager,	46
officer, director, or employer of the person.	47

(b) The developer owns, controls, holds with power to vote,	48
or holds proxies representing more than twenty per cent of the	49
voting interest in the person, doing so either directly or	50
indirectly, acting in concert with one or more other persons, or	51
through one or more subsidiaries.	52

(c) The developer controls, in any manner, the election of a	53
majority of the person's directors.	54

(d) The developer has contributed more than twenty per cent	55
of the person's capital.	56

(3) "Control" does not exist for purposes of division (C)(1)	57
or (2) of this section if a person or developer holds any power	58
described in either of those divisions solely as security for an	59
obligation and that power is not exercised.	60

(D) "Body of water" means a stream, lake, pond, marsh, river,	61
or other body of natural or artificial surface water.	62

(E) "Common assessments" means assessments that are charged	63
proportionately against all units for common purposes.	64

(F) "Common elements" means, unless otherwise provided in the	65
declaration, the following parts of the condominium property:	66

(1) The land described in the declaration;

67

(2) All other areas, facilities, places, and structures that	68
are not part of a unit, including, but not limited to, the	69
following:	70

(a) Foundations, columns, girders, beams, supports,	71
supporting walls, roofs, halls, corridors, lobbies, stairs,	72
stairways, fire escapes, entrances, and exits of buildings;	73

(b) Basements, yards, gardens, parking areas, garages, and	74
storage spaces;	75

(c) Premises for the lodging of janitors or persons in charge	76
of the property;	77

(d) Installations of central services, including, but not	78
limited to, power, light, gas, hot and cold water, heating,	79
refrigeration, air conditioning, and incinerating;	80

(e) Elevators, tanks, pumps, motors, fans, compressors,	81
ducts, and, in general, all apparatus and installations existing	82
for common use;	83

(f) Community and commercial facilities that are not listed	84
in division (F)(2)(a), (b), (c), (d), or (e) of this section but	85
provided for in the declaration;	86

(g) All parts of the condominium property that are not listed	87
in division (F)(2)(a), (b), (c), (d), (e), or (f) of this section	88
that are necessary or convenient to its existence, maintenance,	89
and safety, that are normally in common use, or that have been	90
designated as common elements in the declaration or drawings.	91

(G) "Common expenses" means expenses designated as common	92
expenses in this chapter or in the declaration.	93

(H) "Common losses" means the amount by which the common	94
expenses during any period of time exceeds the common assessments	95
and common profits during that period.	96

(I) "Common profits" means the amount by which the total	97
income received from any of the following exceeds expenses	98
allocable to the particular income, rental, fee, or charge:	99

(1) Assessments charged for special benefits to specific	100
units;	101

(2) Rents received from the rental of equipment or space in	102
common elements;	103

(3) Any other fee, charge, or income other than common	104
assessments.	105

(J) "Common surplus" means the amount by which common	106
assessments collected during any period exceed common expenses.	107

(K) "Condominium" means a form of real property ownership in	108
which a declaration has been filed submitting the property to the	109
condominium form of ownership pursuant to this chapter and under	110
which each owner has an individual ownership interest in a unit	111
with the right to exclusive possession of that unit and an	112
undivided ownership interest with the other unit owners in the	113
common elements of the condominium property.	114

(L) "Condominium development" means a condominium property in	115
which two or more individual residential or water slip units,	116
together with their undivided interests in the common elements of	117
the property, are offered for sale pursuant to a common	118
promotional plan.	119

(M) "Condominium instruments" means the declaration and	120
accompanying drawings and plans, the bylaws of the unit owners	121
association, the condominium development disclosure statement	122
described in section 5311.26 of the Revised Code, any contracts	123
pertaining to the management of the condominium property, and any	124
other documents, contracts, or instruments establishing ownership	125
of or exerting control over a condominium property or unit.	126

(N) "Condominium ownership interest" means a fee simple	127
estate or a ninety-nine-year leasehold estate, renewable forever,	128
in a unit, together with an appurtenant undivided interest in the	129
common elements.	130

(O) "Condominium property" means all real and personal	131
property submitted to the provisions of this chapter, including	132
land, the buildings, improvements, and structures on that land,	133
the land under a water slip, the buildings, improvements, and	134
structures that form or that are utilized in connection with that	135
water slip, and all easements, rights, and appurtenances belonging	136
to the land or to the land under a water slip.	137

(P) "Conversion condominium development" means a condominium	138
development that was operated as a rental property and occupied by	139
tenants immediately prior to the submission of the property to the	140
provisions of this chapter.	141

(Q) "Convertible unit" means a unit that may be converted	142
into one or more units and common elements, including limited	143
common elements.	144

(R) "Declaration" means the instrument by which property is	145
submitted to the provisions of this chapter. "Declaration"	146
includes all amendments to that declaration.	147

(S) "Developer" means any person who directly or indirectly	148
sells or offers for sale condominium ownership interests in a	149
condominium development. "Developer" includes the declarant of a	150
condominium development and any successor to that declarant who	151
stands in the same relation to the condominium development as the	152
declarant.	153

(T) "Exclusive use area" means common elements that the	154
declaration reserves for delegation by the board of directors to	155
the use of a certain unit or units, to the exclusion of other	156
units.	157

(U) "Expandable condominium property" means a condominium	158
property in which the original declaration reserves the right to	159
add additional property.	160

(V) "Leasehold condominium development" means a condominium	161
development in which each unit owner owns a ninety-nine-year	162
leasehold estate, renewable forever, in the owner's unit, in the	163
land upon which that unit is situated, or in both, together with	164
an undivided leasehold interest in the common elements, with all	165
leasehold interests due to expire at the same time.	166

(W) "Limited common elements" means the common elements that	167
the declaration designates as being reserved for use by a certain	168
unit or units, to the exclusion of the other units.	169

(X) "Offer" includes any inducement or solicitation to	170
encourage a person to acquire a condominium ownership interest in	171
a condominium development.	172

(Y) "Par value" means a number, expressed in dollars, points,	173
or as a percentage or fraction, attached to a unit by the	174
declaration.	175

(Z) "Purchaser" means a person who purchases a condominium	176
ownership interest for consideration pursuant to an agreement for	177
the conveyance or transfer of that interest for consideration.	178

(AA) "Sale of a condominium ownership interest" means the	179
execution by both parties of an agreement for the conveyance or	180
transfer for consideration of a condominium ownership interest.	181
"Sale of a condominium ownership interest" does not include a	182
transfer of one or more units from the developer to another	183
developer, a subsidiary of the developer, or a financial	184
institution for the purpose of facilitating the sale or	185
development of the remaining or unsold portion of the condominium	186
property or additional property.	187

(BB) "Unit" means the part of the condominium property that	188
is designated as a unit in the declaration, is delineated as a	189
unit on the drawings prepared pursuant to section 5311.07 of the	190
Revised Code, and is one of the following:	191

(1) A residential unit, in which the designated part of the	192
condominium property is devoted in whole or in part to use as a	193
residential dwelling consisting of one or more rooms on one or	194
more floors of a building. A "residential unit" may include	195
exterior portions of the building, spaces in a carport, and	196
parking spaces as described and designated in the declaration and	197
drawings.	198

(2) A water slip unit, which consists of the land that is	199
under the water in a water slip and the land that is under the	200
piers or wharves that form the water slip, and that is used for	201
the mooring of watercraft.	202

(3) A commercial unit in which the property is designated for	203
separate ownership or occupancy solely for commercial purposes,	204
industrial purposes, or other nonresidential or nonwater slip use.	205

(CC) "Unit owner" means a person who owns a condominium	206
ownership interest in a unit.	207

(DD) "Unit owners association" means the condominium	208
association or other organization that administers the condominium	209
property and that consists of all the owners of units in a	210
condominium property.	211

(EE) "Watercraft" has the same meaning as in division (A) of	212
section 1547.01 of the Revised Code.	213

(FF) "Water slip" means a channel of water between piers or	214
wharves.	215

(GG) "Manager" or "managing agent" means a person that is	216
responsible, alone or in concert with others, for the management	217
of a condominium property.	218

Sec. 5311.08.  (A)(1) Every condominium property shall be	219
administered by a unit owners association. All power and authority	220
of the unit owners association shall be exercised by a board of	221
directors, which the unit owners shall elect from among the unit	222
owners or the spouses of unit owners. If a unit owner is not an	223
individual, that unit owner may nominate for the board of	224
directors any principal, member of a limited liability company,	225
partner, director, officer, or employee of that unit owner.	226

(2) The board of directors shall elect a president,	227
secretary, treasurer, and other officers that the board may	228
desire.	229

(3) Unless otherwise provided in the declaration or the	230
bylaws, all meetings of the unit owners association are open to	231
the unit owners, and those present in person or by proxy when	232
action is taken during a meeting of the unit owners association	233
constitute a sufficient quorum.	234

(4)(a) All meetings of the board of directors shall be open	235
to all unit owners. A portion of each board meeting shall be	236
allocated for comments by unit owners. A unit owner may send an	237
agent or a representative, as authorized by a notarized statement	238
of the unit owner, to attend a board meeting in the unit owner's	239
place.	240

(b) At least five days prior to a meeting of the board of	241
directors, the board shall post a notice of the meeting in the	242
common areas of the condominium property and on the web site	243
maintained by the association or managing agent, if the	244
association or managing agent has a web site. The board also shall	245
send notice to a unit owner who has requested to be included in a	246
mailing list, by electronic mail to the unit owner's electronic	247
mail address or by traditional mail to the unit owner's home	248
mailing address, as requested by the unit owner. The board shall	249
make all public materials provided to board members for the	250
meeting available to unit owners upon request.	251

(c) A meeting of the board of directors may be held by any	252
method of communication, including electronic or telephonic	253
communication provided that each member of the board, and each	254
unit owner that participates, can hear, participate, and respond	255
to every other member of the board or unit owner.	256

(b) In lieu of conducting a meeting, the(d) The board of	257
directors may take action with the unanimous written consent of	258
the members of the board. Those written consents shall be filed	259
with the minutes of the meetings of the boardshall vote on the	260
record.	261

(B) The unit owners association shall be governed by bylaws.	262
No modification of or amendment to the bylaws is valid unless it	263
is set forth in an amendment to the declaration, and the amendment	264
to the declaration is filed for record. Unless otherwise provided	265
by the declaration, the bylaws shall provide for the following:	266

(1)(a) The election of the board of directors of the unit	267
owners association;	268

(b) The number of persons constituting the board;

269

(c) The terms of the directors, with not less than one-fifth	270
to expire annually;	271

(d) The powers and duties of the board;

272

(e) The compensation of the directors;

273

(f) The method of removal of directors from office;

274

(g) The election of officers of the board;

275

(h) Whether or not the services of a manager or managing	276
agent may be engaged.	277

(2) The time and place for holding meetings; the manner of	278
and authority for calling, giving notice of, and conducting	279
meetings; and the requirement, in terms of undivided interests in	280
the common elements, of a quorum for meetings of the unit owners	281
association;	282

(3) By whom and the procedure by which maintenance, repair,	283
and replacement of the common elements may be authorized;	284

(4) The common expenses for which assessments may be made and	285
the manner of collecting from the unit owners their respective	286
shares of the common expenses;	287

(5) The method of distributing the common profits;

288

(6) By whom and the procedure by which administrative rules	289
governing the operation and use of the condominium property or any	290
portion of the property may be adopted and amended. These rules	291
may govern any aspect of the condominium property that is not	292
required to be governed by bylaws and may include standards	293
governing the type and nature of information and documents that	294
are subject to examination and copying by unit owners pursuant to	295
section 5311.091 of the Revised Code, including the times and	296
location at which items may be examined or copied and any required	297
fee for copying the information or documents.	298

(C)(1) The unit owners association shall be established not	299
later than the date that the deed or other evidence of ownership	300
is filed for record following the first sale of a condominium	301
ownership interest in a condominium development. Membership in the	302
unit owners association shall be limited to unit owners, and all	303
unit owners shall be members. Until the unit owners association is	304
established, the developer shall act in all instances in which	305
action of the unit owners association or its officers is	306
authorized or required by law or the declaration.	307

(2)(a) Not later than sixty days after the developer has sold	308
and conveyed condominium ownership interests appertaining to	309
twenty-five per cent of the undivided interests in the common	310
elements in a condominium development, the unit owners association	311
shall meet, and the unit owners other than the developer shall	312
elect not less than one-third of the members of the board of	313
directors.	314

(b) When computing undivided interests in expandable	315
condominium properties for purposes of divisions (C) and (D) of	316
this section, the undivided interests in common elements shall be	317
computed by comparing the number of units sold and conveyed to the	318
maximum number of units that may be created, as stated in the	319
declaration pursuant to division (C)(8) of section 5311.05 of the	320
Revised Code.	321

(D)(1) Except as provided in division (C) of this section,	322
the declaration or bylaws of a condominium development may	323
authorize the developer or persons the developer designates to	324
appoint and remove members of the board of directors of the unit	325
owners association and to exercise the powers and responsibilities	326
otherwise assigned by law, the declaration, or the bylaws to the	327
unit owners association or to the board of directors. The	328
authorization for developer control may extend from the date the	329
unit owners association is established until sixty days after the	330
sale and conveyance to purchasers in good faith for value of	331
condominium ownership interests to which seventy-five per cent of	332
the undivided interests in the common elements appertain, except	333
that in no case may the authorization extend for more than five	334
years after the unit owners association is established if the	335
declaration includes expandable condominium property or more than	336
three years after the unit owners association is established if	337
the declaration does not include expandable condominium property.	338

(2) If there is a unit owner other than the developer, the	339
declaration of a condominium development shall not be amended to	340
increase the scope or the period of the developer's control.	341

(3) Within sixty days after the expiration of the period	342
during which the developer has control pursuant to division (D)(1)	343
of this section, the unit owners association shall meet and elect	344
all members of the board of directors of the association. The	345
persons elected shall take office at the end of the meeting during	346
which they are elected and shall, as soon as reasonably possible,	347
appoint officers.	348

(E) The board of directors, or the developer while in control	349
of the association, may take any measures necessary to incorporate	350
the unit owners association as a not-for-profit corporation.	351

(F) If the services of a manager or managing agent are	352
engaged, the manager or managing agent shall comply with section	353
5311.15 of the Revised Code.	354

Sec. 5311.081. (A) Unless otherwise provided in the	355
declaration or bylaws, the unit owners association, through the	356
board of directors, shall do both of the following:	357

(1) Adopt and amend budgets for revenues, expenditures, and	358
reserves in an amount adequate to repair and replace major capital	359
items in the normal course of operations without the necessity of	360
special assessments, provided that the amount set aside annually	361
for reserves shall not be less than ten per cent of the budget for	362
that year unless the reserve requirement is waived annually by the	363
unit owners exercising not less than a majority of the voting	364
power of the unit owners association;	365

(2) Collect assessments for common expenses from unit owners.

366

(B) Unless otherwise provided in the declaration, the unit	367
owners association, through the board of directors, may exercise	368
all powers of the association, including the power to do the	369
following:	370

(1) HireSubject to section 5311.15 of the Revised Code, hire	371
and fire managing agents, attorneys, accountants, and other	372
independent contractors and employees that the board determines	373
are necessary or desirable in the management of the condominium	374
property and the association;	375

(2) Commence, defend, intervene in, settle, or compromise any	376
civil, criminal, or administrative action or proceeding that is in	377
the name of, or threatened against, the unit owners association,	378
the board of directors, or the condominium property, or that	379
involves two or more unit owners and relates to matters affecting	380
the condominium property;	381

(3) Enter into contracts and incur liabilities relating to	382
the operation of the condominium property;	383

(4) Regulate the use, maintenance, repair, replacement,	384
modification, and appearance of the condominium property;	385

(5) Adopt rules that regulate the use or occupancy of units,	386
the maintenance, repair, replacement, modification, and appearance	387
of units, common elements, and limited common elements when the	388
actions regulated by those rules affect common elements or other	389
units;	390

(6) Cause additional improvements to be made as part of the	391
common elements;	392

(7) Purchase, encumber, and convey units, and, subject to any	393
restrictions in the declaration or bylaws and with the approvals	394
required by division (H)(2) or (3) of section 5311.04 of the	395
Revised Code, acquire an interest in other real property and	396
encumber or convey that interest. All expenses incurred in	397
connection with the acquisition, encumbrance, use, and operation	398
of that interest are common expenses.	399

(8) Acquire, encumber, and convey or otherwise transfer	400
personal property;	401

(9) Hold in the name of the unit owners association the real	402
property and personal property acquired pursuant to divisions	403
(B)(7) and (8) of this section;	404

(10) Grant easements, leases, licenses, and concessions	405
through or over the common elements;	406

(11) Impose and collect fees or other charges for the use,	407
rental, or operation of the common elements or for services	408
provided to unit owners;	409

(12) Impose interest and late charges for the late payment of	410
assessments; impose returned check charges; and, pursuant to	411
division (C) of this section, impose reasonable enforcement	412
assessments for violations of the declaration, the bylaws, and the	413
rules of the unit owners association, and reasonable charges for	414
damage to the common elements or other property;	415

(13) Adopt and amend rules that regulate the collection of	416
delinquent assessments and the application of payments of	417
delinquent assessments;	418

(14) Subject to applicable laws, adopt and amend rules that	419
regulate the termination of utility or other service to a	420
commercial unit if the unit owner is delinquent in the payment of	421
an assessment that pays, in whole or in part, the cost of that	422
service;	423

(15) Impose reasonable charges for preparing, recording, or	424
copying amendments to the declaration, resale certificates, or	425
statements of unpaid assessments;	426

(16) Enter a unit for bona fide purposes when conditions	427
exist that involve an imminent risk of damage or harm to common	428
elements, another unit, or to the health or safety of the	429
occupants of that unit or another unit;	430

(17) To the extent provided in the declaration or bylaws,	431
assign the unit owners association's rights to common assessments,	432
or other future income, to a lender as security for a loan to the	433
unit owners association;	434

(18) Suspend the voting privileges and use of recreational	435
facilities of a unit owner who is delinquent in the payment of	436
assessments for more than thirty days;	437

(19) Purchase insurance and fidelity bonds the directors	438
consider appropriate or necessary;	439

(20) Invest excess funds in investments that meet standards	440
for fiduciary investments under Ohio law;	441

(21) Exercise powers that are:

442

(a) Conferred by the declaration or the bylaws of the unit	443
owners association or the board of directors;	444

(b) Necessary to incorporate the unit owners association as a	445
not-for-profit corporation;	446

(c) Permitted to be exercised in this state by a	447
not-for-profit corporation;	448

(d) Necessary and proper for the government and operation of	449
the unit owners association.	450

(C)(1) Prior to imposing a charge for damages or an	451
enforcement assessment pursuant to division (B)(12) of this	452
section, the board of directors shall give the unit owner a	453
written notice that includes all of the following:	454

(a) A description of the property damage or violation;

455

(b) The amount of the proposed charge or assessment;

456

(c) A statement that the owner has a right to a hearing	457
before the board of directors to contest the proposed charge or	458
assessment;	459

(d) A statement setting forth the procedures to request a	460
hearing pursuant to division (C)(2) of this section;	461

(e) A reasonable date by which the unit owner must cure the	462
violation to avoid the proposed charge or assessment.	463

(2)(a) To request a hearing, the owner shall deliver a	464
written notice to the board of directors not later than the tenth	465
day after receiving the notice required by division (C)(1) of this	466
section. If the owner fails to make a timely request for a	467
hearing, the right to that hearing is waived, and the board may	468
immediately impose a charge for damages or an enforcement	469
assessment pursuant to division (C) of this section.	470

(b) If a unit owner requests a hearing, at least seven days	471
prior to the hearing the board of directors shall provide the unit	472
owner with a written notice that includes the date, time, and	473
location of the hearing.	474

(3) The board of directors shall not levy a charge or	475
assessment before holding any hearing requested pursuant to	476
division (C)(2) of this section.	477

(4) The unit owners, through the board of directors, may	478
allow a reasonable time to cure a violation described in division	479
(B)(12) of this section before imposing a charge or assessment.	480

(5) Within thirty days following a hearing at which the board	481
of directors imposes a charge or assessment, the unit owners	482
association shall deliver a written notice of the charge or	483
assessment to the unit owner.	484

(6) Any written notice that division (C) of this section	485
requires shall be delivered to the unit owner or any occupant of	486
the unit by personal delivery, by certified mail, return receipt	487
requested, or by regular mail.	488

(D) Not later than thirty days after the board of directors	489
adopts a budget in accordance with division (A)(1) of this	490
section, the board shall provide to all the unit owners a summary	491
of the budget including an explanation of the amount and method of	492
calculating and funding reserves, if applicable.	493

Sec. 5311.082. (A) The division of real estate and	494
professional licensing in the department of commerce shall	495
establish and maintain a registry, in the form of a database, of	496
the names of unit owners associations in the state. Information in	497
the database shall be available for public viewing. The division	498
shall include access to the information in the database on the	499
division's web site and in other materials, as determined by the	500
superintendent of real estate and professional licensing.	501

(B) The division shall perform all of the following duties:

502

(1) Adopt, amend, and rescind rules in accordance with	503
Chapter 119. of the Revised Code to carry out sections 5311.082	504
and 5311.083 of the Revised Code governing the registration of	505
unit owners associations;	506

(2) Prescribe the form and content of all applications to be	507
used for registration and renewal of registration pursuant to	508
section 5311.083 of the Revised Code;	509

(3) Review applications for registration and issue	510
registration certificates to unit owners associations that meet	511
the requirements for registration pursuant to section 5311.083 of	512
the Revised Code;	513

(4) Collect all fees related to the registration and renewal	514
of registration certificates for unit owners associations;	515

(5) Maintain a written record of each unit owners association	516
registered with the division, which shall include such	517
documentation as required by the division. The record shall be	518
available for inspection by the public through the web site and	519
copies shall be made available pursuant to division (B) of section	520
149.43 of the Revised Code.	521

(6) Hire all division personnel necessary to implement	522
sections 5311.082 and 5311.083 of the Revised Code.	523

Sec. 5311.083. (A)(1) The board of directors of a unit owners	524
association shall apply to the division of real estate and	525
professional licensing in the department of commerce to register	526
the association on forms prescribed by the division. With the	527
application, the applicant shall submit any information required	528
by the division and a registration fee as specified in rules	529
adopted by the Ohio condominium dispute resolution commission	530
pursuant to division (A)(2) of section 5311.31 of the Revised	531
Code. In no event shall the registration fee exceed three dollars	532
for each unit.	533

(2) The director of commerce, by rule adopted in accordance	534
with Chapter 119. of the Revised Code, may reduce the amount of	535
the registration fee required by this section in any year if the	536
director determines that the total amount of funds the fee is	537
generating at the amount specified in the rules adopted by the	538
commission exceeds the amount of funds the division and the	539
commission need to carry out their powers and duties under this	540
chapter. If the director so reduces the amount of the registration	541
fee, the director shall reduce it for all owners or other persons	542
required to pay the fee under division (A)(1) of this section. If	543
the director has reduced the fee under division (A)(2) of this	544
section, the director may later raise it up to the amounts	545
permitted under division (A)(1) of this section if, in any year,	546
the director determines that the total amount of funds the fee is	547
generating at the reduced amount is insufficient for the division	548
and the commission to carry out their powers and duties under this	549
chapter.	550

(B) Upon receipt of the completed application form,	551
documentation, and registration fee, the division shall issue a	552
certificate of registration to the unit owners association. The	553
board of directors of the unit owners association shall display	554
the certificate in a conspicuous place on the premises of the	555
condominium property for which the registration was obtained. If	556
no appropriate place for displaying the certificate exists on the	557
premises, the board of directors shall keep the certificate of	558
registration on file and available for public inspection at the	559
board's office or at the office of the unit association's managing	560
agent.	561

(C)(1) Except as otherwise provided in this division, each	562
registration issued pursuant to this section shall expire annually	563
on the thirty-first day of August and may be renewed. The renewal	564
fee shall be the same as the initial registration fee prescribed	565
under division (A) of this section.	566

(2) The board of directors of a unit owners association that	567
fails to timely file its renewal with the division also shall be	568
required to pay a late penalty fee in an amount equal to fifty per	569
cent of the renewal fee prescribed under division (C)(1) of this	570
section.	571

(D) All registration and renewal fees collected pursuant to	572
this section shall be paid into the state treasury to the credit	573
of the division to be used by the division to carry out its powers	574
and duties under this chapter and by the commission.	575

Sec. 5311.09.  (A)(1) The unit owners association shall keep	576
all of the following:	577

(a) Correct and complete books and records of account that	578
specify the receipts and expenditures relating to the common	579
elements and other common receipts and expenses;	580

(b) Records showing the allocation, distribution, and	581
collection of the common profits, losses, and expenses among and	582
from the unit owners;	583

(c) Minutes of the meetings of the association and the board	584
of directors;	585

(d) Records of the names and addresses of the unit owners and	586
their respective undivided interests in the common elements;	587

(e) Records showing the names and addresses of the members of	588
the board of directors and association officers;	589

(f) Records of all actions taken without a meeting of the	590
board of directors;	591

(g) The original or restated documents described in division	592
(B)(1)(b) of this section;	593

(h) All financial statements and tax returns, which shall be	594
kept for a minimum of three years;	595

(i) All current contracts into which the condominium	596
development has entered;	597

(j) Records of approvals or denials for requests for design	598
or architectural approval from the board of directors or the unit	599
owners association;	600

(k) Ballots, proxies, and other voting records of the board	601
of directors and the unit owners association, which shall be kept	602
for a minimum of one year.	603

(2) Within thirty days after a unit owner obtains a	604
condominium ownership interest, the unit owner shall provide the	605
following information in writing to the unit owners association	606
through the board of directors:	607

(a) The home address, home and business mailing addresses,	608
and the home and business telephone numbers of the unit owner and	609
all occupants of the unit;	610

(b) The name, business address, and business telephone number	611
of any person who manages the owner's unit as an agent of that	612
owner and, if that person is required to be licensed under section	613
4735.02 of the Revised Code, a copy of that person's license as a	614
real estate broker or salesperson.	615

(3) Within thirty days after a change in any information that	616
division (A)(2) of this section requires, a unit owner shall	617
notify the association, through the board of directors, in writing	618
of the change. When the board of directors requests, a unit owner	619
shall verify or update the information.	620

(B)(1) When elected members of a board of directors of a unit	621
owners association take control of the association, the declarant	622
or developer shall deliver to the board correct and complete	623
copies of all of the following:	624

(a) The books, records, and minutes referred to in division	625
(A) of this section;	626

(b) The declaration, the bylaws, the drawings prepared	627
pursuant to section 5311.07 of the Revised Code, as recorded, and	628
any articles of incorporation of the unit owners association, as	629
recorded;	630

(c) Except in the case of a conversion condominium,	631
documents, information, and sources of information concerning the	632
location of underground utility lines, and plans and	633
specifications that are not proprietary or copyrighted, of the	634
buildings, other improvements, and structures of the condominium	635
property that are reasonably available to the developer, but only	636
in connection with condominium developments declared on or after	637
the effective date of this amendmentJuly 20, 2004, and	638
condominium developments that are declared prior to that date but	639
originally built or constructed on or after that date.	640

(2) The board of directors may commence a civil action on	641
behalf of the unit owners association in the court of common pleas	642
of the county in which the condominium property is located to	643
obtain injunctive relief or recover damages for harm resulting	644
from the declarant's or developer's failure to comply with	645
division (B)(1) of this section.	646

Sec. 5311.091. (A)(1) Except as otherwise prohibited by this	647
section, any member of a unit owners association or any manager or	648
managing agent of the condominium property may examine and copy	649
the books, records, and minutesinformation described in division	650
(A) of section 5311.09 of the Revised Code pursuant to reasonable	651
standards set forth in the declaration, bylaws, or rules the board	652
promulgates, which may include, but are not limited to, standards	653
governing the type of documents that are subject to examination	654
and copying, the times and locations at which those documents may	655
be examined or copied, and the specification of a reasonable fee	656
for copying the documents or the supervision of examination. A	657
member of the unit owners association, manager, or managing agent	658
desiring to examine or copy the information shall submit a notice	659
five days in advance of the date of examination.	660

(2) Unless otherwise provided in the declaration or bylaws	661
pursuant to division (B)(6) of section 5311.08 of the Revised	662
Code, the board of directors may establish a policy requiring a	663
unit owner, manager, or managing agent that requests records in	664
accordance with division (A)(1) of this section to pay a	665
reasonable charge for copies of the records or supervision for	666
examination of the records.	667

(B) The unit owners association is not required to permit the	668
examination and copying of any of the following from books,	669
records, and minutes:	670

(1) Information that pertains to condominium property-related	671
personnel matters;	672

(2) Communications with legal counsel or attorney work	673
product pertaining to pending litigation or other condominium	674
property-related matters;	675

(3) Information that pertains to contracts or transactions	676
currently under negotiation, or information that is contained in a	677
contract or other agreement containing confidentiality	678
requirements and that is subject to those requirements;	679

(4) Information that relates to the enforcement of the	680
declaration, bylaws, or rules of the unit owners association	681
against unit owners;	682

(5) Information the disclosure of which is prohibited by	683
state or federal law.	684

Sec. 5311.15.  (A) No manager or managing agent of a	685
condominium development containing more than ten units shall	686
manage or be hired by a unit owners association pursuant to	687
sections 5311.08 and 5311.081 of the Revised Code unless the	688
manager or managing agent holds an active real estate broker's	689
license or real estate salesperson's license issued under Chapter	690
4735. of the Revised Code.	691

(B) A real estate salesperson may not perform the duties of a	692
manager or managing agent pursuant to division (A) of this section	693
unless the salesperson is affiliated with a broker who has	694
executed a management agreement with the unit owner's association.	695

Sec. 5311.22.  (A) Unless otherwise provided in the	696
declaration or bylaws, each unit owner may exercise that	697
percentage of the total voting power of all unit owners on any	698
question for which the vote of unit owners is permitted or	699
required that is equivalent to the undivided interest in the	700
common elements appurtenant to the owner's unit.	701

(B) Fiduciaries who are owners of record of a unit or units	702
may vote their respective interests as unit owners. Unless	703
otherwise provided in the declaration or bylaws, if two or more	704
persons, whether fiduciaries, tenants in common, or otherwise, own	705
undivided interests in a unit, each person may exercise the	706
proportion of the voting power of all of the owners of the unit	707
that is equivalent to the person's proportionate undivided	708
interest in the unit.	709

(C) A fiduciary for a unit owner or of the estate of a unit	710
owner may vote as though the fiduciary were the unit owner when	711
the fiduciary has furnished to the unit owners association proof,	712
satisfactory to it, of the fiduciary's appointment and	713
qualification as an executor under the last will of a deceased	714
unit owner, an administrator of the estate of a deceased unit	715
owner, a guardian, committee, or conservator of the estate of a	716
minor or incompetent who is a unit owner, a trustee in bankruptcy	717
of a unit owner, a statutory or judicial receiver or liquidator of	718
the estate or affairs of a unit owner, or an assignee for the	719
benefit of creditors of a unit owner.	720

(D) When any fiduciary or representative of a unit owner who	721
is not described in division (C) of this section has furnished the	722
unit owners association with satisfactory proof of authority, that	723
person may vote as though a unit owner.	724

(E) Unless otherwise provided in the declaration or bylaws,	725
votes allocated to a unit may be cast by a directed or undirected	726
proxy executed by a unit owner, provided that a person shall not	727
cast votes representing more than fifteen per cent of the votes in	728
the unit owners association pursuant to undirected proxies.	729

Sec. 5311.28. (A) There is hereby created the Ohio	730
condominium dispute resolution commission, consisting of the	731
following seven members, who shall be appointed by the governor,	732
with the advice and consent of the senate:	733

(1) Two members shall be unit owners and members of a unit	734
owners association, but not members of a unit owners association	735
board of directors. One of these members shall be from a small	736
association and one shall be from a large association.	737

(2) Two members shall be members of a unit association board	738
of directors. One of these members shall be from a small	739
association and one shall be from a large association.	740

(3) One member shall be a certified public accountant.

741

(4) One member shall be a real estate attorney.

742

(5) One member shall represent the public and be a	743
noncondominium property homeowner.	744

(B)(1) Within a reasonable time, the governor shall make	745
initial appointments to the commission. The initial members of the	746
commission shall serve staggered terms ending on the thirtieth day	747
of June one, two, three, four, or five years after appointment, as	748
determined by the governor. Thereafter, terms of office shall be	749
for five years, commencing on the first day of July and ending on	750
the thirtieth day of June. Each member shall hold office from the	751
date of appointment until the end of the term for which appointed.	752
No more than four members shall be members of any one political	753
party. No member of the Ohio condominium dispute resolution	754
commission shall serve concurrently as a member of the Ohio real	755
estate commission or the Ohio real estate appraiser board. Each	756
member, before entering upon the duties of office, shall subscribe	757
to and file with the secretary of state the constitutional oath of	758
office. The governor may remove any member for misconduct, neglect	759
of duty, incapacity, or malfeasance in accordance with section	760
3.04 of the Revised Code. All vacancies that occur shall be filled	761
in the manner prescribed for the regular appointments to the Ohio	762
condominium dispute resolution commission. Any member appointed to	763
fill a vacancy occurring prior to the expiration of the term for	764
which the member's predecessor was appointed shall hold office for	765
the remainder of such term. Any member shall continue in office	766
subsequent to the expiration date of the member's term until the	767
member's successor takes office, or until a period of sixty days	768
has elapsed, whichever occurs first. No member shall hold office	769
for more than two consecutive full terms.	770

(2) Annually, upon the qualification of the member appointed	771
in such year, the Ohio condominium dispute resolution commission	772
shall organize by selecting from its members a chairperson and	773
vice-chairperson and shall do all things necessary and proper to	774
carry out and enforce this chapter.	775

The Ohio condominium dispute resolution commission may do all	776
of the following:	777

(a) Administer oaths;

778

(b) Issue subpoenas;

779

(c) Summon witnesses;

780

(d) Compel the production of books, papers, records, and	781
other forms of evidence;	782

(e) Fix the time and place for hearing any matter related to	783
compliance with sections 5311.08, 5311.081, 5311.083, 5311.09, and	784
5311.091 of the Revised Code.	785

(3) The Ohio condominium dispute resolution commission shall	786
meet at least once each calendar quarter to conduct the business	787
of the commission.	788

(4) A majority of the members of the commission shall	789
constitute a quorum.	790

(5) Members of the Ohio condominium dispute resolution	791
commission shall receive no compensation but shall be reimbursed	792
for their actual and necessary expenses incurred in the discharge	793
of their duties.	794

(C) The division of real estate and professional licensing in	795
the department of commerce shall provide the Ohio condominium	796
dispute resolution commission with meeting space, staff services,	797
and other technical assistance required by the commission in	798
carrying out its duties pursuant to sections 5311.29 to 5311.33 of	799
the Revised Code.	800

(D) As used in this section:

801

(1) "Small association" means a condominium development with	802
fifty units or less;	803

(2) "Large association" means a condominium development with	804
more than fifty units.	805

Sec. 5311.29. The Ohio condominium dispute resolution	806
commission or the superintendent of real estate and professional	807
licensing may compel, by order or subpoena, the production of any	808
book, paper, or document in relation to any matter over which the	809
commission or superintendent has jurisdiction and which is the	810
subject of inquiry and investigation by the commission or	811
superintendent. The commission or the superintendent also may	812
compel, by order or subpoena, the attendance of witnesses to	813
testify in a hearing held pursuant to section 5311.32 of the	814
Revised Code. For those purposes, the commission or superintendent	815
shall have the same power as judges of courts of common pleas to	816
administer oaths, compel the attendance of witnesses, and compel	817
the production of any book, paper, or document. Service of the	818
subpoena may be made by sheriffs or constables, or by certified	819
mail, return receipt requested, and the subpoena shall be deemed	820
served on the date delivery is made or the date the person refused	821
to accept delivery. Witnesses shall receive, after their	822
appearance before the commission or superintendent, the fees and	823
mileage provided for under section 119.094 of the Revised Code. If	824
two or more witnesses travel together in the same vehicle, the	825
mileage fee shall be paid to only one of those witnesses, but the	826
witnesses may agree to divide the fee among themselves in any	827
manner.	828

In addition to the powers granted to the commission and	829
superintendent under this section, in case any person fails to	830
file any statement or report, obey any subpoena, give testimony,	831
answer questions, or produce any books, records, or papers as	832
required by the commission or superintendent under this chapter,	833
the court of common pleas of any county in the state, upon	834
application made to it by the commission or superintendent setting	835
forth such failure, may make an order awarding process of subpoena	836
or subpoena duces tecum for the person to appear and testify	837
before the commission or superintendent, and may order any person	838
to give testimony and answer questions, and to produce books,	839
records, or papers, as required by the commission or	840
superintendent. Upon the filing of such order in the office of the	841
clerk of the court of common pleas, the clerk, under the seal of	842
the court, shall issue process of subpoena for the person to	843
appear before the commission or superintendent at a time and place	844
named in the subpoena, and each day thereafter until the	845
examination of such person is completed. The subpoena may contain	846
a direction that the witness bring with the witness to the	847
examination any books, records, or papers mentioned in the	848
subpoena. The clerk shall also issue, under the seal of the court,	849
such other orders, in reference to the examination, appearance,	850
and production of books, records, or papers, as the court directs.	851
If any person so summoned by subpoena fails to obey the subpoena,	852
to give testimony, to answer questions as required, or to obey an	853
order of the court, the court, on motion supported by proof, may	854
order an attachment for contempt to be issued against the person	855
charged with disobedience of any order or injunction issued by the	856
court under this chapter. If the person is brought before the	857
court by virtue of the attachment, and if upon a hearing the	858
disobedience appears, the court may order the offender to be	859
committed and kept in close custody.	860

Sec. 5311.30.  (A) The Ohio condominium dispute resolution	861
commission is a part of the department of commerce for	862
administrative purposes. The director of commerce is ex officio	863
the executive officer of the commission, or the director may	864
appoint the superintendent of real estate and professional	865
licensing to act as executive officer of the commission.	866

(B) The commission or the superintendent, except as otherwise	867
provided, shall do all of the following:	868

(1) Hear and investigate all of the following:

869

(a) General complaints and disputes between a unit owner and	870
a unit owners association or board of directors;	871

(b) Requests by a majority of unit owners in a unit owners	872
association or upon a motion of the board of directors of a unit	873
owners association to audit the elections of the unit owners	874
association;	875

(c) Disputes over access to records of a unit owners	876
association or board of directors.	877

(2) Establish and maintain an investigation and audit section	878
to investigate complaints and conduct inspections, audits, and	879
other inquiries as in the judgment of the commission or	880
superintendent are appropriate. The investigators or auditors have	881
the right to review and audit the records described in division	882
(A)(1) of section 5311.09 of the Revised Code during normal	883
business hours.	884

(C) The commission or superintendent may, in connection with	885
investigations and audits under division (B) of this section,	886
subpoena witnesses as provided in section 5311.29 of the Revised	887
Code.	888

(D) All information that is obtained by the commission,	889
superintendent, investigators, and auditors performing	890
investigations or conducting inspections, audits, and other	891
inquiries pursuant to division (B) of this section and all	892
reports, documents, and other work products that arise from that	893
information and that are prepared by the commission,	894
investigators, auditors, or other personnel of the department,	895
shall be held in confidence by the superintendent or commission,	896
the investigators and auditors, and other personnel of the	897
department.	898

Sec. 5311.31. The Ohio condominium dispute resolution	899
commission shall perform all of the following duties:	900

(A) Adopt, amend, and rescind such rules in accordance with	901
Chapter 119. of the Revised Code as are necessary in carrying out	902
sections 5311.29 to 5311.33 of the Revised Code, including rules	903
relative to the following:	904

(1) Transacting the commission's business and managing its	905
affairs;	906

(2) Establishing registration and renewal fees pursuant to	907
section 5311.083 of the Revised Code;	908

(3) Establishing procedures for receiving, reviewing, and	909
responding to complaints filed pursuant to section 5311.32 of the	910
Revised Code;	911

(4) Conducting investigations in response to complaints filed	912
pursuant to division (A) of section 5311.32 of the Revised Code;	913

(5) Auditing elections pursuant to division (B) of section	914
5311.30 of the Revised Code or as part of an investigation in	915
response to complaints filed pursuant to division (A) of section	916
5311.32 of the Revised Code;	917

(6) Conducting audits pursuant to division (B) of section	918
5311.30 of the Revised Code;	919

(7) Resolving complaints by using informal techniques of	920
mediation, conciliation, and persuasion, including requiring the	921
parties involved in a complaint to be given prompt notice of any	922
offers to resolve disputes and responses thereto;	923

(8) Advising all parties making a complaint, or who are the	924
subject of a complaint, of any recommendations or findings of fact	925
made by the commission with respect to the complaint;	926

(9) Requesting the party who has filed a complaint or is the	927
subject of a complaint, and is affected by recommendations of the	928
commission made with respect to the complaint, to notify the	929
commission within a time specified by the commission of any action	930
the party has taken in response to the commission's	931
recommendations;	932

(10) Conducting nonpublic hearings and maintaining commission	933
proceedings and records as confidential, notwithstanding sections	934
121.22 and 149.43 of the Revised Code when the commission	935
determines that the nature of the complaints merits that action;	936

(11) Determining the method to be used in serving notices as	937
required by section 5311.32 of the Revised Code.	938

(B) Publicize information concerning the existence and duties	939
of the commission and the procedure for filing complaints pursuant	940
to section 5311.32 of the Revised Code;	941

(C) Conduct hearings on complaints pursuant to section	942
5311.32 of the Revised Code;	943

(D) Submit at least annually by the thirty-first day of March	944
a report on the commission's activities of the immediately	945
preceding calendar year to the governor and the majority and	946
minority leaders of the senate and house of representatives. The	947
report shall indicate the total number of complaints received,	948
initiated, and investigated under sections 5311.32 and 5311.33 of	949
the Revised Code; the total number of complaints for which	950
hearings were held; and the total number of referrals made to	951
prosecuting attorneys pursuant to section 5311.33 of the Revised	952
Code.	953

(E) Review, at least once each year, all actions taken by the	954
prosecuting attorneys in response to referrals made to them by the	955
commission or the superintendent of real estate and professional	956
licensing. The commission shall include in the report required in	957
division (D) of this section information regarding the nature of	958
the inappropriate conduct alleged in each referral and the status	959
or disposition made of each referral occurring during the	960
preceding two years.	961

(F) Perform all functions as are necessary in administering	962
and enforcing sections 5311.29 to 5311.33 of the Revised Code.	963

Sec. 5311.32. (A) Any person may file a complaint regarding	964
the activity, practice, policy, or procedure of, or regarding an	965
alleged violation of section 5311.08, 5311.081, 5311.09, or	966
5311.091 of the Revised Code by, any board of directors of a unit	967
owners association registered pursuant to section 5311.083 of the	968
Revised Code that adversely affects or may adversely affect the	969
interest of a unit owner. All complaints shall be in writing and	970
submitted to the division of real estate and professional	971
licensing in the department of commerce on forms provided by the	972
division.	973

(B) With respect to complaints filed pursuant to division (A)	974
of this section, the division shall do all of the following:	975

(1) Acknowledge receipt of the complaint by sending written	976
notice to the person who filed the complaint not more than twenty	977
days after receipt of the complaint;	978

(2) Send written notice of the complaint within seven days	979
after receipt of the complaint to the entity that is the subject	980
of the complaint;	981

(3) Before taking further action, allow the entity that is	982
the subject of a complaint thirty days after the date the division	983
sends notice of the complaint to respond to the division with	984
respect to the complaint.	985

(C) The Ohio condominium dispute resolution commission shall	986
hear each complaint filed pursuant to division (A) of this section	987
within one hundred eighty days after its filing, unless it has	988
been resolved by the parties to the complaint.	989

Sec. 5311.33. (A) The superintendent of real estate and	990
professional licensing or the Ohio condominium dispute resolution	991
commission, on the superintendent's or the commission's own motion	992
or as a result of a complaint received pursuant to section 5311.32	993
of the Revised Code and with good cause shown, shall investigate	994
or cause to be investigated alleged violations of sections	995
5311.08, 5311.081, 5311.09, and 5311.091 of the Revised Code. If	996
the commission or the superintendent of real estate and	997
professional licensing believes that a violation has occurred, the	998
commission or superintendent shall do all of the following:	999

(1) Request the prosecuting attorney of the county in which	1000
the alleged violation occurred to initiate such proceedings as are	1001
appropriate;	1002

(2) In accordance with section 5311.30 of the Revised Code,	1003
audit the records of the condominium association named in the	1004
complaint to ensure compliance with this chapter.	1005

(B) The commission or superintendent, at any time, may	1006
dismiss a complaint if the commission or superintendent determines	1007
there is not good cause shown for the complaint. If the commission	1008
or superintendent dismisses a complaint, the commission or	1009
superintendent shall notify the person who filed the complaint	1010
within twenty days of reaching the commission's or	1011
superintendent's decision and identify the reason why the	1012
complaint was dismissed.	1013

(C) When necessary for the division of real estate and	1014
professional licensing in the department of commerce to perform	1015
the duties required by sections 5311.32 and 5311.33 of the Revised	1016
Code, the superintendent may issue subpoenas and compel the	1017
production of books, papers, records, and other forms of evidence.	1018

Sec. 5311.99. (A) Whoever violates section 5311.083 of the	1019
Revised Code is guilty of a misdemeanor of the third degree.	1020

(B) Whoever violates section 5311.08, 5311.09, or 5311.091 of	1021
the Revised Code is guilty of a misdemeanor of the first degree.	1022

(C) Whoever violates section 5311.081 of the Revised Code is	1023
guilty of a felony of the fifth degree, and, notwithstanding	1024
section 2929.18 of the Revised Code, the court may impose upon the	1025
offender an additional fine of not more than two thousand five	1026
hundred dollars.	1027

Section 2.  That existing sections 5311.01, 5311.08,	1028
5311.081, 5211.09, 5311.091, and 5311.22 of the Revised Code are	1029
hereby repealed.	1030

Section 3. Sections 5311.082, 5311.083, and 5311.15 of the	1031
Revised Code, as enacted by this act, shall take effect one	1032
hundred twenty days after the effective date of this act. During	1033
that period, the Superintendent of Real Estate and Professional	1034
Licensing shall collect and process applications for unit owners	1035
association registration and shall issue certificates of	1036
registration. During that time, no association is required to have	1037
a certificate of registration.	1038