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2016 End of Session Report

Flag restrictions: HB 18 prohibits neighborhood associations and condominium associations from including a provision in a governing document that prohibits the display of the Ohio flag or a service flag, subject to specified conditions, and prohibits the trustees of the association from construing a provision in a governing document for that purpose. The LAC worked with the sponsors to amend the legislation. The bill was enacted.

Omnibus bill: HB 534 failed upon the adjournment. The bill would require the Division of Real Estate and Professional Licensing to establish and maintain a database registry of the names of condominium unit owners associations in Ohio and to adopt rules regarding registration and fees. It would require the board of directors of a unit owners association to apply to the Division to register the association in the database and to subsequently display a certificate or registration issued by the Division. It would require all meetings of a unit owners association's board of directors to be open to all unit owners. It would expand the records that a unit owners association must keep. It requires blanket fidelity insurance coverage for any person who controls or disburses association funds. It would add that liens that attach for unpaid common expenses are continuing liens that are subject to automatic subsequent adjustments that reflect certain additional unpaid assessments. It modifies the priority of liens that attach to properties for unpaid common expenses. It would establish mediation and investigation procedures by the Superintendent of Real Estate and Professional Licensing relating to the Ohio Condominium Law. The LAC supported several provisions of the bill and opposed others and worked with the sponsors for amendments.

Priority Lien: HB 226 would expand the lien that a condominium unit owners association has on the owner's interest in a unit and appurtenant undivided interest in the common elements to include (1) assessments or charges under the Condominium Property Law, the declaration, or bylaws and (2) authorized court costs. It provided that the condominium unit owners association's lien on the owner's interest in the unit and common elements for common expenses, interest, and certain fees, assessments, and costs is a continuing lien, subject to automatic adjustments for any additional unpaid interest, fees, assessments, and costs. It provided that, subject to a cap, this continuing lien has priority over liens and encumbrances that previously arose or were created, except liens for real estate taxes and political subdivision assessments. It would expand the continuing lien that a planned community owners association has on the interest in any lot to include any unpaid assessment or charge provided for by the Planned Community Law, the declaration, or bylaws. It would provide that, subject to a cap, a planned community owners association's lien on the interest in any lot for the payment of individual lot assessments, interest, and certain fees, assessments, and costs has priority over liens and encumbrances that previously arose or were created, except liens for real estate taxes and political subdivision assessments. The LAC supported the bill. The measure failed upon adjournment. 

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