Feniger & Uliasz Law of NH Explains New Condominium Act Changes

The New Hampshire Legislature has recently passed sweeping changes to the New Hampshire Condominium Act. The changes were signed into law by the Governor and became effective as of  8/1/16. While the changes affect only a few sections of the statute they will require changes in the way the business of your condominium association is conducted. While not all changes will affect all associations in the same way, it is important that each Board of Directors as well as managers become familiar with and implement the new requirements of the condominium statute.

The changes to the Condominium Statute are formally identified as HB 353 and may be found on the web site for the New Hampshire General Court. One of the more significant changes relates to the contents of the Bylaws, found in the current statute as RSA 356-B:35. The new law repeals the old section and replaces it in its entirety. Under the new law all associations must establish a board of directors and specify the powers and responsibilities of that board. The bylaws must also specify which powers may be delegated to a managing agent.

The next area of change will affect meetings and in some ways the power of the board of directors to control the process and operate the association. The statute also mandates the use of Roberts Rules of Order, Newly Revised (11^th edition) for the conduct of meetings and procedures. All Boards should have a copy of that book handy. The section is RSA 356-B:37, also repealed and rewritten in its entirety in the new law. Some important requirements compelled by the new law are that a unit owners association meeting must be held at least once a year but, in addition, there must be four, open, board of director meetings each year, not less than one per quarter.

The duties of the Board of Directors is addressed making clear that the Board acts on behalf of the unit owners association and the board of directors shall have a fiduciary relationship to the members of the unit owner’s association. The law distinguishes between board members appointed by a Declarant and those elected. There are also changes to the procedure for adoption of budgets and special assessments under the new law at RSA 356-B:40-c. In short, if two thirds of the unit owners vote against the proposed budget it will not be ratified. However, there is no requirement of a quorum at the ratification meeting.

Finally, these changes to the law are mandatory. If the condominium instruments are in conflict with the law, the law controls. If the procedures you follow conflict with the law, the law controls. This is but a brief summary of the changes. Go to www.fenigeranduliasz.com for a full version of the amendment to the statute.

Feniger & Uliasz, LLP is a law firm representing condominium associations and property management companies in New Hampshire and Massachusetts with three offices to serve you.