AN ACT CONCERNING COURT-ORDERED ACCOUNTINGS OF COMMON INTEREST COMMUNITY FINANCIAL RECORDS AND REVISING THE DISCLOSURE REQUIREMENTS RELATING TO COMMON INTEREST COMMUNITIES.

Substitute House Bill No. 5265

Public Act No. 26-31

AN ACT CONCERNING COURT -ORDERED ACCOUNTINGS OF
COMMON INTEREST COMMUNITY FINANCIAL RECORDS AND
REVISING THE DISCLOSURE REQUIREMENTS RELATING TO
COMMON INTEREST COMMUNITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) ( Effective October 1, 2026 ) (a) Notwithstanding any
provision of the declaration or bylaws to the contrary and except as
provided in subsection (c) of section 47 -260 of the general statutes, any
group of unit owners of units to which at least twenty per cent of the
votes in the ass ociation are allocated pursuant to the declaration may
petition the Superior Court for an order directing such association to
retain an independent third party to conduct an audit of such
association's financial records retained by such association pursuant to
the provisions of subsection (a) of section 47 -260 of the general statutes
that are related to such association's expenditures and any other
financial matters, provided such group of unit owners satisfies the
following conditions:
(1) Such group of unit owners certifies in writing that a good faith
belief exists in grounds for an audit of such association's financial
records;
(2) Such group of unit owners obtains a signed opinion of an
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independent certified public accountant who specializes in fraud or
financial forensics that there appears to be evidence of financial fraud or
misuse of such association's funds. Such signed opinion shall identify
the basis for the formation of such opinion;
(3) Such group of unit owners certifies in such petition to such group
of unit owner's ownership of units to which at least twenty per cent of
the votes in such association are allocated pursuant to the declaration
and attaches to such petition a certified copy of the allocation of the
votes from the declaration as recorded; and
(4) No such audit has been completed during the immediately
preceding twelve months from the date such group of unit owners filed
such petition for an audit of such association's financial records.
(b) Any expenses associated with the completion of an audit by an
independent third party of an association's financial records pursuant
to the provisions of subsection (a) of this section shall be paid for by the
group of unit owners who filed such petition for an audit of such
association's financial records.
(c) Any association or community association manager who provides
association management services for such association may charge a
reasonable fee to the group of unit owners for providing such
association's financial records to an independent third party pursuant
to the provisions of this section. For the purposes of this subsection,
"association management services" and "community association
manager" have the same meanings as provided in section 20 -450 of the
general statutes.
(d) Any association may be entitled to reasonable attorney's fees
incurred by the association pursuant to the provisions of this section.
Sec. 2. Subparagraph (B) of subdivision (2) of subsection (d) of section
20-327b of the 2026 supplement to the general statutes is repealed and
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the following is substituted in lieu thereof (Effective October 1, 2026):
(B) A subsection entitled "General Information"
(i) Indicate the YEAR the structure was built:
(ii) Indicate HOW LONG you have occupied the property: If not
applicable, indicate with N/A.
(iii) Does anyone else claim to own any part of your property,
including, but not limited to, any encroachment(s)? If YES, explain:
(iv) Does anyone other than you have or claim to have any right to
use any part of your property, including, but not limited to, any
easement or right-of-way? If YES, explain:
(v) Is the property in a flood hazard area or an inland wetlands area?
If YES, explain:
(vi) Are you aware of the presence of a dam on the property that has
been or is required to be registered with the Department of Energy and
Environmental Protection? If YES, explain:
(vii) Do you have any reason to believe that the municipality in which
the subject property is located may impose any assessment for purposes
such as sewer installation, sewer improvements, water main
installation, water main improvements, sidewalks or other
improvements? If YES, explain:
(viii) Is the property located in a municipally designated village
district, municipally designated historic district or listed on the National
Register of Historic Places? If YES, explain:
(ix) Special Statement: Information concerning village districts and
historic districts may be obtained from the municipality's village or
historic district commission, if applicable.
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(x) Is the property located in a special tax district? If YES, explain:
(xi) Is the property subject to any type of land use restrictions, other
than those contained within the property's chain of title or that are
necessary to comply with state laws or municipal zoning? If YES,
explain:
(xii) Is the property located in a common interest community? If YES,
is it subject to any community or association dues or fees? Please
explain:
(xiii) Special Statement: If the property is located in a common
interest community that is comprised of more than twelve units, the
buyer is advised to (I) obtain a "Resale Certificate", which shall be
provided by the common interest community pursuant to state law, and
(II) request from the common interest community a report of such
common interest community's reserve funds. For any common interest
community that is comprised of not more than twelve units and not
required to provide such resale certificate, if such resale certificate is not
available, the buyer should consult with trade professionals, attorneys,
real estate professionals, financial analysts and residents of such
common interest community for more information concerning issues
that may arise with ownership in common interest communities.
[(xiii)] (xiv) Do you have any knowledge of prior or pending
litigation, government agency or administrative actions, orders or liens
on the property related to the release of any hazardous substance? If
YES, explain: