Chapter 340
AN ACT
SB 543
Relating to property governed by
declarations; amending ORS 94.670 and 100.480; and declaring an emergency.
Be It Enacted by the People of
the State of
SECTION 1. ORS 94.670 is amended to read:
94.670. (1) A homeowners
association shall retain within this state the documents, information and
records delivered to the association under ORS 94.616 and all other records of
the association for not less than the period specified for the record in ORS
65.771 or any other applicable law except that:
(a) The documents
specified in ORS 94.616 (3)(o), if received, must be
retained as permanent records of the association.
(b) Proxies and ballots
must be retained for one year from the date of determination of the vote.
[(2) All assessments, including declarant subsidies, shall be deposited
in a separate bank account, located within this state, in the name of the
association. All expenses of the association shall be paid from the association
bank account.]
(2) All assessments,
including declarant subsidies, shall be deposited in the name of the
association in a separate federally insured account at a financial institution,
as defined in ORS 706.008, other than an extranational institution. All
expenses of the association shall be paid from the association account.
(3) The association
shall keep financial records sufficiently detailed for proper accounting
purposes. Within 90 days after the end of the fiscal year, the board of
directors shall:
(a) Prepare or cause to
be prepared an annual financial statement consisting of a balance sheet and
income and expenses statement for the preceding fiscal year; and
(b) Distribute to each
owner and, upon written request, any mortgagee of a lot, a
copy of the annual financial statement.
(4) Subject to section
24, chapter 803, Oregon Laws 2003, the association of a planned community that
has annual assessments exceeding $75,000 shall cause the financial statement
required under subsection (3) of this section to be reviewed within 180 days
after the end of the fiscal year by an independent certified public accountant
licensed in the State of Oregon in accordance with the Statements on Standards
for Accounting and Review Services issued by the American Institute of
Certified Public Accountants.
(5) The association of a
planned community created on or after January 1, 2004, or the association of a
planned community described in ORS 94.572 that has annual assessments of
$75,000 or less shall cause the most recent financial statement required by
subsection (3) of this section to be reviewed in the manner described in
subsection (4) of this section within 180 days after the association receives a
petition requesting review signed by at least a majority of the owners.
(6) An association
subject to the requirements of subsection (4) of this section may elect, on an
annual basis, not to comply with the requirements of subsection (4) of this
section by an affirmative vote of at least 60 percent of the owners, not
including the votes of the declarant with respect to lots owned by the
declarant.
(7)(a) The association
shall provide, within 10 business days of receipt of a written request from an
owner, a written statement that provides:
(A) The amount of
assessments due from the owner and unpaid at the time the request was received,
including:
(i) Regular and special
assessments;
(ii) Fines and other
charges;
(iii) Accrued interest;
and
(iv)
Late payment charges.
(B) The percentage rate
at which interest accrues on assessments that are not paid when due.
(C) The percentage rate
used to calculate the charges for late payment or the amount of a fixed charge
for late payment.
(b) The association is
not required to comply with paragraph (a) of this subsection if the association
has commenced litigation by filing a complaint against the owner and the
litigation is pending when the statement would otherwise be due.
(8) The association
shall make the documents, information and records described in subsections (1)
and (3) of this section and all other records of the association reasonably
available for examination and, upon written request, available for duplication
by an owner and any mortgagee of a lot that makes the request in good faith for
a proper purpose, except that records kept by or on behalf of the association
may be withheld from examination and duplication to the extent the records
concern:
(a) Personnel matters
relating to a specific identified person or a person’s medical records.
(b) Contracts, leases
and other business transactions that are currently under negotiation to
purchase or provide goods or services.
(c) Communications with
legal counsel that relate to matters specified in paragraphs (a) and (b) of
this subsection.
(d) Disclosure of
information in violation of law.
(e) Documents,
correspondence or management or board reports compiled for or on behalf of the
association or the board of directors by its agents or committees for
consideration by the board of directors in executive session held in accordance
with ORS 94.640 (7).
(f) Documents,
correspondence or other matters considered by the board of directors in
executive session held in accordance with ORS 94.640 (7).
(g) Files of individual
owners, other than those of a requesting owner or requesting mortgagee of an
individual owner, including any individual owner’s file kept by or on behalf of
the association.
(9) The association
shall maintain a copy, suitable for the purpose of duplication, of the
following:
(a) The declaration and
bylaws, including amendments or supplements in effect, the recorded plat, if
feasible, and the association rules and regulations currently in effect.
(b)
The most recent financial statement prepared pursuant to subsection (3) of this
section.
(c) The current
operating budget of the association.
(d) The reserve study,
if any, described in ORS 94.595.
(e) Architectural
standards and guidelines, if any.
(10) The association,
within 10 business days after receipt of a written request by an owner, shall
furnish the requested information required to be maintained under subsection
(9) of this section.
(11) The board of
directors, by resolution, may adopt reasonable rules governing the frequency,
time, location, notice and manner of examination and duplication of association
records and the imposition of a reasonable fee for furnishing copies of any
documents, information or records described in this section. The fee may
include reasonable personnel costs for furnishing the documents, information or
records.
SECTION 2. ORS 100.480 is amended to read:
100.480. (1) An
association of unit owners shall retain within this state the documents,
information and records delivered to the association under ORS 100.210 and all
other records of the association for not less than the period specified for the
record in ORS 65.771 or any other applicable law, except that:
(a) The documents
specified in ORS 100.210 (5)(j), if received, must be
retained as permanent records of the association.
(b) Proxies and ballots
must be retained for one year from the date of determination of the vote.
[(2) The association of unit owners shall keep financial records
sufficient for proper accounting purposes. All assessments shall be deposited
in a separate bank account, located within this state, in the name of the association.
All expenses of the association shall be paid from the association bank
account.]
(2) The association
of unit owners shall keep financial records sufficient for proper accounting
purposes. All assessments shall be deposited in the name of the association in
a separate federally insured account at a financial institution, as defined in
ORS 706.008, other than an extranational institution. All expenses of the
association shall be paid from the association account.
(3) Within 90 days after
the end of the fiscal year, the board of directors shall:
(a) Prepare or cause to
be prepared an annual financial statement consisting of a balance sheet and
income and expenses statement for the preceding fiscal year; and
(b) Distribute to each
unit owner a copy of the annual financial statement.
(4) Subject to section
26, chapter 803, Oregon Laws 2003, the association of unit owners of a
condominium that has annual assessments exceeding $75,000 shall cause the
financial statement required under subsection (3) of this section to be
reviewed within 180 days after the end of the fiscal year by an independent
certified public accountant licensed in the State of Oregon in accordance with
the Statements on Standards for Accounting and Review Services issued by the American
Institute of Certified Public Accountants.
(5) The association of
unit owners of a condominium that has annual assessments of $75,000 or less
shall cause the most recent financial statement required by subsection (3) of
this section to be reviewed in the manner described in subsection (4) of this
section within 180 days after the board of directors receives the petition
requesting review signed by at least a majority of the owners.
(6) An association of
unit owners subject to the requirements of subsection (4) of this section may
elect, on an annual basis, not to comply with the requirements of subsection
(4) of this section by an affirmative vote of at least 60 percent of the
owners, not including the votes of the declarant with respect to units owned by
the declarant.
(7)(a) The association
shall provide, within 10 business days of receipt of a written request from an
owner, a written statement that provides:
(A) The amount of
assessments due from the owner and unpaid at the time the request was received,
including:
(i) Regular and special
assessments;
(ii) Fines and other
charges;
(iii) Accrued interest;
and
(iv)
Late payment charges.
(B) The percentage rate
at which interest accrues on assessments that are not paid when due.
(C) The percentage rate
used to calculate the charges for late payment or the amount of a fixed charge
for late payment.
(b) The association is
not required to comply with paragraph (a) of this subsection if the association
has commenced litigation by filing a complaint against the owner and the
litigation is pending when the statement would otherwise be due.
(8)(a) Except as
provided in paragraph (b) of this subsection, the documents, information and
records described in subsections (1) to (3) of this section and all other
records of the association of unit owners must be reasonably available for
examination and, upon written request, available for duplication by a unit
owner and any mortgagee of a unit that makes the request in good faith for a
proper purpose.
(b) Records kept by or
on behalf of the association may be withheld from examination and duplication
to the extent the records concern:
(A) Personnel matters
relating to a specific identified person or a person’s medical records.
(B) Contracts, leases
and other business transactions that are currently under negotiation to
purchase or provide goods or services.
(C) Communications with
legal counsel that relate to matters specified in subparagraphs (A) and (B) of
this paragraph.
(D) Disclosure of
information in violation of law.
(E) Documents,
correspondence or management or board reports compiled for or behalf of the
association or the board of directors by its agents or committees for
consideration by the board of directors in executive session held in accordance
with ORS 100.420 (1).
(F) Documents,
correspondence or other matters considered by the board of directors in
executive session held in accordance with ORS 100.420 (1).
(G) Files of individual
owners, other than those of a requesting owner or requesting mortgagee of an
individual owner, including any individual owner’s file kept by or on behalf of
the association.
(9) The association of
unit owners shall maintain a copy, suitable for the purpose of duplication, of
the following:
(a) The declaration and
bylaws, including amendments or supplements in effect, the recorded plat, if
feasible, and the association rules and regulations currently in effect;
(b)
The most recent annual financial statement prepared in accordance with
subsection (3) of this section;
(c) The current
operating budget of the association;
(d) The reserve study,
if any, described in ORS 100.175; and
(e) Architectural
standards and guidelines, if any.
(10) The association,
within 10 business days after receipt of a written request by an owner, shall
furnish the requested information required to be maintained under subsection
(9) of this section.
(11) The board of
directors, by resolution, may adopt reasonable rules governing the frequency,
time, location, notice and manner of examination and duplication of association
records and the imposition of a reasonable fee for furnishing copies of any
documents, information or records described in this section. The fee may
include reasonable personnel costs incurred to furnish the information.
(12) Subsection (3) of
this section first applies to property submitted to the provisions of this
chapter before January 1, 1982, when the board of directors of the association
of unit owners receives a written request from at least one unit owner that a
copy of the annual financial statement be distributed in accordance with
subsection (3) of this section.
SECTION 3. This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 2007 Act takes effect on its passage.
Approved by the Governor June 11, 2007
Filed in the office of Secretary of State June 13, 2007
Effective date June 11, 2007
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