Connecticut HB 5437: AN ACT REQUIRING A FEASIBILITY STUDY OF INSURANCE POOLING FOR NONPROFIT ENTITIES.

Bill Text

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General Assembly Raised Bill No. 5437
February Session, 2026 LCO No. 2398

Referred to Committee on JUDICIARY

Introduced by:
(JUD)

AN ACT CONCERNING THE APPROVAL PROCESS FOR PROPOSED
BUDGETS AND SPECIAL ASSESSMENTS IN COMMON INTEREST
COMMUNITIES AND THE AVAILABILITY OF A LIST OF NAMES AND
ADDRESSES OF UNIT OWNERS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 47-261e of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2026): 2
(a) (1) Except as provided in subdivision (2) of this subsection, the 3
executive board, at least annually, shall adopt a proposed budget for the 4
common interest community for consideration by the unit owners. Not 5
later than thirty days after the adoption of a proposed budget, the 6
executive board shall provide to all unit owners a summary of the 7
proposed budget, including a statement of the amount of any reserves, 8
and a statement of the basis on which such reserves are calculated and 9
funded. Simultaneously, the board shall set a date not less than ten days 10
or more than sixty days after providing the summary for either a 11
meeting of the unit owners or a vote by ballot without a meeting to 12
consider approval or rejection of the proposed budget. If, at that meeting 13
or in the vote by ballot, a majority of all unit owners or any larger 14

Raised Bill No. 5437

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number specified in the declaration votes to approve the proposed 15
budget, the proposed budget shall be approved. If, at that meeting or in 16
the vote by ballot, a majority of all unit owners or any larger number 17
specified in the declaration votes to reject the proposed budget, the 18
proposed budget shall be rejected. [If, at that meeting or in the vote by 19
ballot, a majority of all unit owners or any larger number specified in 20
the declaration does not vote to reject the proposed budget, the 21
proposed budget shall be approved. The absence of a quorum at such 22
meeting or participating in the vote by ballot shall not affect rejection or 23
approval of the proposed budget.] If a proposed budget is rejected, the 24
budget last approved by the unit owners continues until unit owners 25
approve a subsequent budget. [If a proposed budget is not rejected in 26
accordance with the provisions of this subdivision, the proposed budget 27
shall be deemed approved.] 28
(2) The executive board of an association of a common interest 29
community, or of a master association as defined in section 47-239 30
exercising the powers on behalf of one or more common interest 31
communities or for the benefit of the unit owners of one or more 32
common interest communities, which community or communities were 33
established prior to July 3, 1991, and have more than two thousand four 34
hundred residential units, at least annually, shall adopt a proposed 35
budget for the common interest community for consideration by the 36
unit owners. Not later than thirty days after the adoption of a proposed 37
budget, the executive board shall provide to all unit owners a summary 38
of the proposed budget, including a statement of the amount of any 39
reserves, and a statement of the basis on which such reserves are 40
calculated and funded. Simultaneously, the board shall set a date not 41
less than ten days or more than sixty days after providing the summary 42
for either a meeting of the unit owners or a vote by ballot without a 43
meeting to consider approval or rejection of the proposed budget. If, at 44
that meeting or in the vote by ballot, a majority of unit owners actually 45
voting votes to reject the proposed budget, the proposed budget shall 46
be rejected, provided not less than thirty-three and one-third per cent of 47

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the unit owners entitled to vote on the proposed budget vote at that 48
meeting or in the vote by ballot to reject the proposed budget. If an 49
association's declaration or bylaws include quorum requirements for a 50
meeting, the absence of a quorum at such meeting or participating in the 51
vote by ballot shall not affect rejection or approval of the proposed 52
budget. If a proposed budget is rejected, the budget last approved by 53
the unit owners continues until unit owners approve a subsequent 54
budget. If a proposed budget is not rejected in accordance with the 55
provisions of this subdivision, the proposed budget shall be deemed 56
approved. 57
(b) (1) Except as provided in subdivision (2) of this subsection, the 58
executive board, at any time, may propose a special assessment. Not 59
later than thirty days after adoption of a proposed special assessment, 60
the executive board shall provide to all unit owners a summary of the 61
proposed special assessment. Unless the declaration or bylaws 62
otherwise provide, if the proposed special assessment, together with all 63
other special and emerg