You asked (1) if a condominium formed before the adoption of the Common Interest Ownership Act (CIOA) can adopt portions of CIOA or must it adopt all of it, (2) what percentage of unit owners are needed for a merger and is it governed by statute or bylaws, and (3) what law if any gives unit owners the right to get information from their association.

SUMMARY

The Common Interest Ownership Act (CIOA) governs the creation, alteration, management, termination, and sale of condominiums and other common interest communities formed in Connecticut after January 1, 1984 (CGS § 47-200 et seq. ). Condominiums created before CIOA was adopted were governed by Chapter 825 of the General Statutes (CGS §§ 47-68a to 47-90c).

Certain provisions of CIOA automatically apply to any condominium created in Connecticut before January 1, 1984, but only with respect to events and circumstances that occur after December 31, 1983.

The law permits condominiums created before January 1, 1984, to amend their governing instruments (declaration, bylaws, survey, or plans) to conform to the portions of CIOA that do not automatically apply. Thus, a pre-CIOA condominium may adopt whatever of these provisions of CIOA it wishes and does not have to adopt all of CIOA. Any amendment must comply with the law that applied when it was created and with the procedures and requirements specified by the condominium's declaration and bylaws.

Regarding mergers, CIOA permits any two or more condominiums, by agreement of the unit owners, to merge or consolidate into a single condominium. CIOA requires that at least those holding 80% of the votes of the association approve. But it allows the declaration to require a higher percentage and, if all of the units are restricted exclusively to nonresidential uses, it allows the declaration to specify a smaller percentage. Certain provisions of CIOA automatically apply to any condominium created in Connecticut before January 1, 1984, but only with respect to events and circumstances that occur after December 31, 1983. Thus CIOA governs the merger of pre-CIOA condominiums also.

Regarding access to condominium records, CIOA requires that all financial and other records must be made reasonably available for examination by any unit owner and his authorized agents. But this requirement does not automatically apply to pre-CIOA condominiums. Thus, if a pre-CIOA condominium has not adopted this CIOA provision its duty to provide access to records is governed by the pre-CIOA law. The pre-CIOA law requires that records the declarant, association, and association manager maintain be available for examination and copying by any unit owner or his agents or attorneys, at the unit owner's expense, during normal business hours, and after reasonable notice.

ADOPTION OF CIOA BY PRE-CIOA CONDOMINIUMS

The law allows pre-CIOA condominiums to amend their declaration, bylaws, or surveys and plans to achieve any result permitted by the Common Interest Ownership Law (CIOA) regardless of what applicable law provided before that date. Thus a pre-CIOA condominium may adopt whatever provision of CIOA it wishes and does not have to adopt all of CIOA (CGS § 47-218(a)).

But such an amendment must be adopted in conformity with any procedures and requirements for amending the declaration and bylaws under pre-CIOA or, if there are none, in conformity with the amendment procedures of CIOA. If an amendment grants to any person any rights, powers, or privileges permitted by CIOA, all corresponding obligations, liabilities, and restrictions in CIOA also apply to that person (CGS § 47-218(b)).

Certain provisions of CIOA automatically apply to any condominium created in Connecticut before January 1, 1984, but only with respect to events and circumstances that occur after December 31, 1983. These provisions involve:

In a recent OLR Report we have summarized these provisions (2005-R-0348).

The law exempts from CIOA condominiums created before January 1, 1984 pursuant to a special act of the legislature unless a majority of unit owners votes to subject it to CIOA (CGS § 47-217).

MERGERS OF CONDOMINIUMS

Under CIOA, any two or more condominiums, by agreement of the unit owners, may be merged or consolidated into a single condominium. The agreement must be evidenced by an agreement prepared, executed, recorded, and certified by the president of the association of each of the preexisting condominiums following approval by owners of units to which are allocated the percentage of votes required to terminate that condominium (CGS § 47-240). To terminate a, condominium governed by CIOA requires agreement of unit owners of units to which at least 80% of the votes in the association are allocated, or any larger percentage the declaration specifies. The declaration may specify a smaller percentage only if all of the units are restricted exclusively to nonresidential uses (CGS § 47-237).

Because CGS § 47-240 is one of the provisions that automatically applies to pre-CIOA condominiums, it also applies to mergers of pre-CIOA condominiums (CGS § 47-216(a)).

RIGHT OF UNIT OWNERS TO ASSOCIATION RECORDS

CIOA

Under CIOA, the association must keep financial records sufficiently detailed to enable the association to comply with CGS § 47-270. CIOA requires that all financial and other records must be made reasonably available for examination by any unit owner and his authorized agents (CGS § 47-260).

CGS § 47-270 requires that the following information be available to unit owners:

1. the amount of the periodic common expense assessment and any unpaid common expense or special assessment currently due and payable from a selling unit owner;

2. any other fees payable by a unit owner;

3. a statement of any capital expenditures in excess of $ 1,000 approved by the executive board for the current and next succeeding fiscal year;

4. the amount of any reserves for capital expenditures;

5. the association's current operating budget;

6. a statement of any unsatisfied judgments against the association and the existence of any pending suits in which the association is a defendant;

7. a statement of the insurance coverage provided for the benefit of unit owners;

8. a statement of any restrictions in the declaration affecting the amount that may be received by a unit owner on sale, condemnation, casualty loss to the unit or the common interest community, or termination of the common interest community; and

9. a statement describing any pending sale or encumbrance of common elements.

But these requirements do not automatically apply to pre-CIOA condominiums (CGS § 47-216(a)). Thus if a pre-CIOA condominium has not adopted CGS § 47-260, its duty to make records available to unit owners is governed by the pre-CIOA law.

Pre-CIOA

Under the pre-CIOA law, the declarant and the association must maintain accounting records according to generally accepted accounting practices. Such records must include:

1. a record of all receipts and expenditures;

2. an account for each unit which must designate the name and address of each unit owner, the amount of each assessment, the dates on which the assessment comes due, the amounts paid on the account, and the balance due;

3. a record of the actual cost, irrespective of discounts and allowances, of the maintenance of the common elements; and

4. an accurate account of the current balance in the reserve for replacement and for emergency repairs (CGS § 47-81(a)).

The pre-CIOA law also requires that records maintained by the declarant, association, or manager must be available for examination and copying by any unit owner or his duly authorized agents or attorneys, at the unit owner's expense, during normal business hours and after reasonable notice (CGS § 47-81(b)).

It also require declarant of pre-CIOA condominium, from the date of the recording of the declaration until they relinquish control of the association to have a certified audit of the books of the condominium prepared by a certified public accountant at least once every calendar year that must be available for examination by the unit owners. Thereafter on the written petition of unit owners of not less than 25% of the units then completed, a certified audit by an independent certified public accountant must be made, but not more than once in any consecutive 12-month period. The cost of the audit is a common expense (CGS § 47-81(c)).

GC: ts