ANALYSIS HB 913 (ER) -- CONDO 3.0

CHAPTER VII

• INVESTMENT OF ASSOCIATION FUNDS: Line 1546 – 1556

The bill provides new responsibilities and duties of the board and association in managing operating and reserve funds of the association.   One the one hand, this promotes efficiency, and, on the other hand, at what cost this efficiency means to owners in the future?    Perhaps what “best efforts” on prudent investment decisions should be more clearly clarified since decisions are made without a vote of the unit owners.

 

(16).    INVESTMENT OF ASSOCIATION FUNDS.

 

A board shall, in fulfilling its duty to manage operating and reserve funds of its association, use best efforts to make prudent investment decisions that carefully consider risk and return in an effort to maximize returns on invested funds.

 

An association, including a multicondominium association, may invest reserve funds in one or any combination of certificates of deposit or in depository accounts at a community bank, savings bank, commercial bank, savings and loan association, or credit union without a vote of the unit owners.

LEGISLATIVE SESSION

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