We know. We know. MA Condo Statute 183A, 10C doesn’t really sound that sexy or exciting but if you own a condo here’s some information you should know. Currently, this statute mandates that all condo boards must maintain all financial condo documents for owner’s to access for 7 years. Sounds basic enough, right? But what if the board doesn’t “maintain all financial condo documents” for seven years for you to access? Well, that means you are out of luck! It could mean:
- Owners with no access to their records from their board could be unable to refinance or sell.
- Negative financial consequences for seniors/fixed income, young adults/those with high student loans.
- Banks/FHA won’t mortgage/refinance if they can’t see the required financial and other documents over a period of 3 years.
- Because there are no teeth in the statute, there is NO reason for boards to comply with the statute – leaving the owners responsible for enforcing the statute.
- This means the owners must pay out of pocket to sue their board – a statute meant to protect the owners.
In other words, a big mess. This statue was enacted in 1963 when there was just 3,008 condos in the state – most of these condos were converted housing development projects. Today there are over 309,000 and growing with over 59,000 in Boston alone. In the past 51 years, banks have changed and grown and now want condos to have reserve funds, how many are owner occupied, how many are in foreclosure, is the complex insured properly. Shouldn’t the condo statute be updated too?
So how can we fix this?
By adding an amendment to the statute holding boards accountable for non-compliance, that’s how! Owners should not have to pay out of pocket to enforce a statute that was meant to protect them – when it’s the board of managers of a condominium that is not in compliance with the state statute.
Currently this new amendment S621 is in its third reading in the House of Representatives. It’s already been passed by the Senate. The next stop is on the House floor for a vote. If you think this condo statute needs to move into the 21st century, you can reach out to Meredith Keane – the crusader who is pushing for this – at 617-596-1709 or email her at [email protected]
Be informed. Get involved.