Connecticut HB 5433: AN ACT CONCERNING LIMITATIONS ON THE PROVISION OF GIFTS TO THE EXECUTIVE BOARD MEMBERS OF THE ASSOCIATION OF A COMMON INTEREST COMMUNITY.

Bill Text

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General Assembly Raised Bill No. 5433
February Session, 2026 LCO No. 2373

Referred to Committee on JUDICIARY

Introduced by:
(JUD)

AN ACT CONCERNING LIMITATIONS ON THE PROVISION OF GIFTS
TO THE EXECUTIVE BOARD MEMBERS OF THE ASSOCIATION OF A
COMMON INTEREST COMMUNITY.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 47-245 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2026): 2
(a) Except as provided in the declaration, the bylaws, subsection (b) 3
of this section, or other provisions of this chapter, the executive board 4
may act in all instances on behalf of the association. In the performance 5
of their duties, officers and members of the executive board appointed 6
by the declarant shall exercise the degree of care and loyalty to the 7
association required of a trustee and officers and members of the 8
executive board not appointed by a declarant shall exercise the degree 9
of care and loyalty to the association required of an officer or director of 10
a corporation organized under chapter 602, and are subject to the 11
conflict of interest rules governing directors and officers under chapter 12
602. The standards of care and loyalty described in this section apply 13
regardless of the form in which the association is organized. 14

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(b) The executive board may not: 15
(1) Amend the declaration, except as provided in section 47-236; 16
(2) Terminate the common interest community; 17
(3) Elect members of the executive board, except that the executive 18
board may fill vacancies in its membership for the unexpired portion of 19
any term or, if earlier, until the next regularly scheduled election of 20
executive board members; or 21
(4) Determine the qualifications, powers and duties, or terms of office 22
of executive board members. 23
(c) The executive board shall adopt budgets as provided in section 24
47-261e. 25
(d) Subject to the provisions of subsection (e) of this section, the 26
declaration may provide for a period of declarant control of the 27
association, during which a declarant, or persons designated by the 28
declarant, may appoint and remove the officers and members of the 29
executive board. A declarant may voluntarily surrender the right to 30
appoint and remove officers and members of the executive board before 31
the period ends. In that event, the declarant may require, during the 32
remainder of the period, that specified actions of the association or 33
executive board, as described in a recorded instrument executed by the 34
declarant, be approved by the declarant before they become effective. 35
Regardless of the period provided in the declaration, a period of 36
declarant control terminates no later than the earlier of: (1) Sixty days 37
after conveyance of sixty per cent of the units that may be created to unit 38
owners other than a declarant, except that in the case of a master 39
planned community, control terminates no later than sixty days after 40
conveyance to unit owners other than the declarant of sixty per cent of 41
the maximum number of units that may be built, if that number is 42
specified, or, if no such number is specified, after conveyance to unit 43
owners other than the declarant of three hundred units; (2) two years 44

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after all declarants have ceased to offer units for sale in the ordinary 45
course of business; (3) two years after any right to add new units was 46
last exercised; or (4) the date the declarant, after giving notice in a record 47
to unit owners, records an instrument voluntarily surrendering all 48
rights to control activities of the association. 49
(e) Not later than sixty days after conveyance of one-third of the units 50
that may be created to unit owners other than a declarant, at least one 51
member and not less than one-third of the members of the executive 52
board shall be elected by unit owners other than the declarant. 53
(f) Except as otherwise provided in subsection (e) of section 47-239, 54
not later than the termination of any period of declarant control, the unit 55
owners shall elect an executive board of at least three members, at least 56
a majority of whom shall be unit owners. Unless the declaration or 57
bylaws provides for the election of officers by the unit owners, the 58
executive board shall elect the officers. The executive board members 59
and officers shall take office upon election. 60
(g) A declaration may provide for the appointment of specified 61
positions on the executive board by either a governmental subdivision 62
or agency or a nonstock corporation exempt from taxation under 26 USC 63
501(c)(3) and 26 USC 4940(d)(2), as from time to time amended, during 64
or after the period of declarant control. A declaration may also provide 65
a method for filling vacancies in those specified