sb476_00

As Introduced

136th General Assembly

Regular Session S. B. No. 476

2025-2026

To amend sections 5311.03, 5311.08, 5311.081, 5311.09, 5311.22, 5312.03, 5312.04, 5312.06, 5312.08, and 5312.11 and to enact sections 5311.082, 5311.083, 5311.28, 5311.30, 5311.31, 5311.32, 5311.33, 5311.34, 5311.35, 5312.041, 5312.042, 5312.17, 5312.18, 5312.19, 5312.20, 5312.21, 5312.22, and 5312.23 of the Revised Code to make changes to the Ohio Planned Community and Condominium Law.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 5311.03, 5311.08, 5311.081, 5311.09, 5311.22, 5312.03, 5312.04, 5312.06, 5312.08, and 5312.11 be amended and sections 5311.082, 5311.083, 5311.28, 5311.30, 5311.31, 5311.32, 5311.33, 5311.34, 5311.35, 5312.041, 5312.042, 5312.17, 5312.18, 5312.19, 5312.20, 5312.21, 5312.22, and 5312.23 of the Revised Code be enacted to read as follows:

Sec. 5311.03. (A) Each unit of a condominium property, together with the undivided interest in the common elements appurtenant to it, is real property for all purposes and is real estate within the meaning of all provisions of the Revised Code.

(B) A unit owner is entitled to the exclusive ownership and possession of the unit and to ownership of an undivided interest in the common elements as expressed in the declaration.

(C)(1) Each residential and commercial unit shall have a direct exit to a public street or highway, to a common element leading to a public street or highway, or to a permanent easement leading to a public street or highway.

(2) Each water slip unit shall have a direct exit to a body of water, to a common element leading to a body of water, or to a permanent easement leading to a body of water. Each water slip unit also shall have a direct exit to a public street or highway or to a common element leading to a public street or highway.

(D) Unless otherwise provided in the declaration or drawings:

(1) The boundaries of residential and commercial units are the interior surfaces of the perimeter walls, floors, and ceilings.

(2) Windows and doors, sashes, thresholds, frames, jambs, and hardware in the perimeter walls, floors, or ceilings of the unit are part of the unit.

(3) Supporting walls, fixtures, and other parts of the building that are within the boundaries of the unit but that are necessary for the existence, support, maintenance, safety, or comfort of any other part of the condominium property are not part of the unit.

(E)(1) Ownership of a residential unit includes the right to exclusive possession, use, and enjoyment of the interior surfaces of the perimeter walls, floors, and ceilings and of the supporting walls, fixtures, and other parts of the building within its boundaries, including the right to paint, tile, wax, paper, or otherwise finish, refinish, or decorate the unit.

(2) Ownership of a water slip unit includes the exclusive right to moor a watercraft in the portion of water above the water slip unit and the right to exclusive possession, use, and enjoyment of the piers or wharves that are within the boundaries of the water slip unit.

(3) Ownership of a commercial unit includes the right to exclusive possession, use, and enjoyment of the unit within the unit's boundaries.

~~(F) Each unit is subject to the right of access for the purpose of~~ (F)(1) Any person authorized by a board of directors of a unit owners association to perform maintenance, repair, or service of to any common element located within ~~its~~ the boundaries or of any portion of ~~the~~ a unit ~~itself by persons authorized by the board of directors of the unit owners association~~shall receive the unit owner's express permission prior to entering into the unit or its boundaries. ~~No maintenance, repair, or service of any portion of a unit shall be authorized, however, unless it is necessary in the opinion of the board of directors~~

(2) A unit owner's permission is not needed to enter into a unit if the reason for the entrance is for public safety or in order to prevent damage to or destruction of any other part of the condominium property, as determined by the board of directors of the unit owners association.

Sec. 5311.08. (A)(1) Every condominium property shall be administered by a unit owners association. All power and authority of the unit owners association shall be exercised by a board of directors, which the unit owners shall elect from among the unit owners or the spouses of unit owners. If a unit owner is not an individual, that unit owner may nominate for the board of directors any principal, member of a limited liability company, partner, director, officer, or employee of that unit owner. The majority of the board shall not consist of unit owners or representatives from the same unit unless authorized by a resolution adopted by the board of directors prior to the board majority being comprised of owners or representatives from the same unit.

(2) The board of directors shall elect a president, secretary, treasurer, and other officers that the board may desire.

(3) Unless otherwise provided in the declaration or the bylaws, all meetings of the unit owners association are open to the unit owners, and those present in person or by proxy when action is taken during a meeting of the unit owners association constitute a sufficient quorum.

(4)(a) A meeting of the board of directors may be held by any method of communication, including electronic or telephonic communication provided that each member of the board can hear, participate, and respond to every other member of the board.

(b) In lieu of conducting a meeting, the board of directors may take action with the unanimous written consent of the members of the board. Those written consents shall be filed with the minutes of the meetings of the board.

(B) Except as provided in division (A)(1) of this section, the unit owners association shall be governed by bylaws. No modification of or amendment to the bylaws is valid unless it is set forth in an amendment to the declaration, and the amendment to the declaration is filed for record. Unless otherwise provided by the declaration, the bylaws shall provide for the following:

(1)(a) The election of the board of directors of the unit owners association;

(b) The number of persons constituting the board;

(d) The powers and duties of the board;

(e) The compensation of the directors;

(f) The method of removal of directors from office;

(g) The election of officers of the board;

(h) Whether or not the services of a manager or managing agent may be engaged.

(2) The time and place for holding meetings; the manner of and authority for calling, giving notice of, and conducting meetings; and the requirement, in terms of undivided interests in the common elements, of a quorum for meetings of the unit owners association;

(3) By whom and the procedure by which maintenance, repair, and replacement of the common elements may be authorized;

(4) The common expenses for which assessments may be made and the manner of collecting from the unit owners their respective shares of the common expenses;

(5) The method of distributing the common profits;

(6) By whom and the procedure by which administrative rules governing the operation and use of the condominium property or any portion of the property may be adopted and amended. These rules may govern any aspect of the condominium property that is not required to be governed by bylaws and may include standards governing the type and nature of information and documents that are subject to examination and copying by unit owners pursuant to section 5311.091 of the Revised Code, including the times and location at which items may be examined or copied and any required fee for copying the information or documents.

(C)(1) The unit owners association shall be established not later than the date that the deed or other evidence of ownership is filed for record following the first sale of a condominium ownership interest in a condominium development. Membership in the unit owners association shall be limited to unit owners, and all unit owners shall be members. Until the unit owners association is established, the developer shall act in all instances in which action of the unit owners association or its officers is authorized or required by law or the declaration.

(2)(a) Not later than sixty days after the developer has sold and conveyed condominium ownership interests appertaining to twenty-five per cent of the undivided interests in the common elements in a condominium development, the unit owners association shall meet, and the unit owners other than the developer shall elect not less than one-third of the members of the board of directors.

(b) When computing undivided interests in expandable condominium properties for purposes of divisions (C) and (D) of this section, the undivided interests in common elements shall be computed by comparing the number of units sold and conveyed to the maximum number of units that may be created, as stated in the declaration pursuant to division (C)(8) of section 5311.05 of the Revised Code.

(D)(1) Except as provided in division (C) of this section, the declaration or bylaws of a condominium development may authorize the developer or persons the developer designates to appoint and remove members of the board of directors of the unit owners association and to exercise the powers and responsibilities otherwise assigned by law, the declaration, or the bylaws to the unit owners association or to the board of directors. The authorization for developer control may extend from the date the unit owners association is established until sixty days after the sale and conveyance to purchasers in good faith for value of condominium ownership interests to which seventy-five per cent of the undivided interests in the common elements appertain, except that in no case may the authorization extend for more than five years after the unit owners association is established if the declaration includes expandable condominium property or more than three years after the unit owners association is established if the declaration does not include expandable condominium property.

(2) If there is a unit owner other than the developer, the declaration of a condominium development shall not be amended to increase the scope or the period of the developer's control.

(3) Within sixty days after the expiration of the period during which the developer has control pursuant to division (D)(1) of this section, the unit owners association shall meet and elect all members of the board of directors of the association. The persons elected shall take office at the end of the meeting during which they are elected and shall, as soon as reasonably possible, appoint officers.

(E) The board of directors, or the developer while in control of the association, may take any measures necessary to incorporate the unit owners association as a not-for-profit corporation.

(F) Any funds allocated by the board of directors of the unit owners association shall be used for the general good of all the members of the association, including common expenses described under section 5311.041 of the Revised Code.

Sec. 5311.081. (A) The unit owners association, through the board of directors, shall do both of the following:

(1) Annually, adopt and amend an estimated budget for revenues and expenditures, subject to the approval of the majority of the unit owners association members present at the meeting, as described in division (B) of section 5311.082 of the Revised Code. The budget shall include reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, unless either of the following applies:

(a) The declaration or bylaws include language limiting the ability of the board of directors to increase assessments for common expenses without a vote of the unit owners;

(b) The unit owners, exercising not less than a majority of the voting power of the unit owners association, waive the reserve requirement in writing annually.

(2) Collect assessments for common expenses from unit owners.

(B) Unless otherwise provided in the declaration, the unit owners association, through the board of directors, may exercise all powers of the association, including the power to do the following:

(1) Hire and fire managing agents, attorneys, accountants, and other independent contractors and employees that the board determines are necessary or desirable in the management of the condominium property and the association;

(2) Commence, defend, intervene in, settle, or compromise any civil, criminal, land use planning, or administrative action or proceeding that is in the name of, or threatened against, the unit owners association, the board of directors, or the condominium property, or that involves two or more unit owners, impacts zoning, or otherwise relates to matters affecting the condominium property;

(3) Enter into contracts and incur liabilities relating to the operation of the condominium property;

(4) Regulate the use, maintenance, repair, replacement, modification, and appearance of the condominium property;

(5) Adopt rules that regulate the use or occupancy of units, the maintenance, repair, replacement, modification, and appearance of units, common elements, and limited common elements when the actions regulated by those rules affect common elements or other units;

(6) Cause additional improvements to be made as part of the common elements;

(7) Purchase, encumber, and convey units, and, subject to any restrictions in the declaration or bylaws and with the approvals required by division (H)(2) or (3) of section 5311.04 of the Revised Code, acquire an interest in other real property and encumber or convey that interest. All expenses incurred in connection with the acquisition, encumbrance, use, and operation of that interest are common expenses.

(8) Acquire, encumber, and convey or otherwise transfer personal property;

(9) Hold in the name of the unit owners association the real property and personal property acquired pursuant to divisions (B)(7) and (8) of this section;

(10) Grant easements, leases, licenses, and concessions through or over the common elements;

(11) Impose and collect fees or other charges for all of the following:

(a) The use, rental, or operation of the common elements;

(b) Services provided to unit owners;

(c) To the extent provided in the declaration or bylaws, social activities or charitable contributions on behalf of the owners association;

(12) Impose interest and late charges for the late payment of assessments; impose returned check charges; and, pursuant to division (C) of this section, impose reasonable enforcement assessments for violations of the declaration, the bylaws, and the rules of the unit owners association, and reasonable charges for damage to the common elements or other property;

(13) Adopt and amend rules that regulate the collection of delinquent assessments and the application of payments of delinquent assessments;

(14) Subject to applicable laws, adopt and amend rules that regulate the termination of utility or other service to a commercial unit if the unit owner is delinquent in the payment of an assessment that pays, in whole or in part, the cost of that service;

(15) Impose reasonable charges for preparing, recording, or copying amendments to the declaration, resale certificates, or statements of unpaid assessments;

(16) Enter a unit for bona fide purposes when conditions exist that involve an imminent risk of damage or harm to common elements, another unit, or to the health or safety of the occupants of that unit or another unit;

(17) To the extent provided in the declaration or bylaws, assign the unit owners association's rights to common assessments, or other future income, to a lender as security for a loan to the unit owners association;

(18) Suspend the voting privileges and use of recreational facilities of a unit owner who is delinquent in the payment of assessments for more than thirty days;

(19) Purchase insurance and fidelity bonds the directors consider appropriate or necessary;

(20) Invest excess funds in investments that meet standards for fiduciary investments under Ohio law;

(21) Exercise powers that are:

(a) Conferred by the declaration or the bylaws of the unit owners association or the board of directors;

(b) Necessary to incorporate the unit owners association as a not-for-profit corporation;

(d) Necessary and proper for the government and operation of the unit owners association.

(C)(1) Prior to imposing a charge for damages or an enforcement assessment pursuant to division (B)(12) of this section, the board of directors shall give the unit owner a written notice, which may be in the form of electronic mail to an electronic mail address previously provided by the owner in writing, that includes all of the following:

(a) A description of the property damage or violation;

(b) Corroborating evidence of the property damage or violation, including pictures, videos, or any other kinds of physical or photographic evidence;

~~(c)~~(d) A statement that the owner has a right to a hearing before the board of directors to contest the proposed charge or assessment;

~~(d)~~(e) A statement setting forth the procedures to request a hearing pursuant to division (C)(2) of this section;

~~(e)~~(f) A reasonable date by which the unit owner must cure the violation to avoid the proposed charge or assessment.

(2)(a) To request a hearing, the owner shall deliver a written notice to the board of directors not later than the tenth day after receiving the notice required by division (C)(1) of this section. If the owner fails to make a timely request for a hearing, the right to that hearing is waived, and the board may immediately impose a charge for damages or an enforcement assessment pursuant to division (C) of this section.

(b) If a unit owner requests a hearing, at least seven days prior to the hearing the board of directors shall provide the unit owner with a written notice that includes the date, time, and location of the hearing.

(3) The board of directors shall not levy a charge or assessment ~~before holding any~~ until both of the following occur:

(a) The evidence required under division (C)(1)(b) of this section is provided to the unit owner.

(b) A hearing requested pursuant to division (C)(2) of this section is held.

(4) The unit owners, through the board of directors, may allow a reasonable time to cure a violation described in division (B)(12) of this section before imposing a charge or assessment.

(5) Within thirty days following a hearing at which the board of directors imposes a charge or assessment, the unit owners association shall deliver a written notice of the charge or assessment to the unit owner.

(6) Any written notice that division (C) of this section requires shall be delivered to the unit owner or any occupant of the unit by personal delivery, by certified mail, return receipt requested, or by regular mail.

Sec. 5311.082. (A) As used in this section, "meeting" means any prearranged discussion of the public business of the board of directors of a unit owners association by a majority of its members. "Meeting" does not include the following:

(1) Executive sessions of a board of directors;

(2) When the primary topic concerns one or more specific unit owners to discuss possible violations or other matters personal to the unit owner or owners.

(B) All meetings of the unit owners association are open to every unit owner, regardless of standing, to attend and participate in any discussion or deliberation. Those present, in person or by proxy, when action is taken during a meeting of the unit owners association constitute a sufficient quorum. The board of directors shall make minutes from such meetings available to all unit owners.

(C)(1) A meeting of the board of directors may be held by any method of communication, including electronic or telephonic communication, provided that each member of the board and each unit owner who elects to attend or participate under division (B) of this section can hear, participate, and respond to all other participants.

(2) In lieu of conducting a meeting, the board of directors may take action with the unanimous written consent of the members of the board. Those written consents shall be filed with the minutes of the board's meetings. This division does not apply to any action concerning the allocation of funds.

(D) A unit owners association shall provide notice to unit owners of the time and place of all regularly scheduled meetings and the time, place, and purpose of any special meetings. Notice may be provided by any method reasonably calculated to be received by the majority of unit owners.

Sec. 5311.083. (A) A member of the board of directors of a unit owners association that chooses to designate a person as a proxy to vote at a board meeting shall comply with the following:

(1) The member shall state the member's votes in writing and have the person delivering the proxy vote approve and sign the form prior to the vote taking place.

(2) A member shall designate a person as a proxy on a per-meeting basis.

(3) No person shall control more than ten per cent of proxy votes at a meeting.

(B) The board of directors of a unit owners association, when voting on a budget, shall not control a majority of the votes by proxy.

Sec. 5311.09. (A)(1) The unit owners association shall keep all of the following:

(a) Correct and complete books and records of account that specify the receipts and expenditures relating to the common elements and other common receipts and expenses, including all relevant records related to the allocation of funds, bank records, bank reconciliation documents, and any other financial documents;

(b) Records showing the allocation, distribution, and collection of the common profits, losses, and expenses among and from the unit owners;

(d) Records of the names and addresses of the unit owners and their respective undivided interests in the common elements.

(2) Within thirty days after a unit owner obtains a condominium ownership interest, the unit owner shall provide the following information in writing to the unit owners association through the board of directors:

(a) The home address, home and business mailing addresses, and the home and business telephone numbers of the unit owner and all occupants of the unit;

(b) The name, business address, and business telephone number of any person who manages the owner's unit as an agent of that owner.

(3) Within thirty days after a change in any information that division (A)(2) of this section requires, a unit owner shall notify the association, through the board of directors, in writing of the change. When the board of directors requests, a unit owner shall verify or update the information.

(B)(1) When elected members of a board of directors of a unit owners association take control of the association, the declarant or developer shall deliver to the board correct and complete copies of all of the following:

(a) The books, records, and minutes referred to in division (A) of this section;

(b) The declaration, the bylaws, the drawings prepared pursuant to section 5311.07 of the Revised Code, as recorded, and any articles of incorporation of the unit owners association, as recorded;

(c) Except in the case of a conversion condominium, documents, information, and sources of information concerning the location of underground utility lines, and plans and specifications that are not proprietary or copyrighted, of the buildings, other improvements, and structures of the condominium property that are reasonably available to the developer, but only in connection with condominium developments declared on or after ~~the effective date of this amendment~~ July 20, 2004, and condominium developments that are declared prior to that date but originally built or constructed on or after that date.

(2) The board of directors may commence a civil action on behalf of the unit owners association in the court of common pleas of the county in which the condominium property is located to obtain injunctive relief or recover damages for harm resulting from the declarant's or developer's failure to comply with division (B)(1) of this section.

Sec. 5311.22. (A) Unless otherwise provided in the declaration or bylaws, each unit owner may exercise that percentage of the total voting power of all unit owners on any question for which the vote of unit owners is permitted or required that is equivalent to the undivided interest in the common elements appurtenant to the owner's unit, except that the total percentage of the voting power for any particular owner shall not exceed forty-nine per cent of the total voting power of the unit owners association.

(B) Fiduciaries who are owners of record of a unit or units may vote their respective interests as unit owners. Unless otherwise provided in the declaration or bylaws, if two or more persons, whether fiduciaries, tenants in common, or otherwise, own undivided interests in a unit, each person may exercise the proportion of the voting power of all of the owners of the unit that is equivalent to the person's proportionate undivided interest in the unit.

(C) A fiduciary for a unit owner or of the estate of a unit owner may vote as though the fiduciary were the unit owner when the fiduciary has furnished to the unit owners association proof, satisfactory to it, of the fiduciary's appointment and qualification as an executor under the last will of a deceased unit owner, an administrator of the estate of a deceased unit owner, a guardian, committee, or conservator of the estate of a minor or incompetent who is a unit owner, a trustee in bankruptcy of a unit owner, a statutory or judicial receiver or liquidator of the estate or affairs of a unit owner, or an assignee for the benefit of creditors of a unit owner.

(D) When any fiduciary or representative of a unit owner who is not described in division (C) of this section has furnished the unit owners association with satisfactory proof of authority, that person may vote as though a unit owner.

Sec. 5311.28. (A) A unit owners association may prohibit short-term renting of units if prospective unit owners are given adequate notice that short-term renting is prohibited.

(B) Any unit owner that was prohibited from using the owner's unit as a short term rental by a unit owners association prior to the effective date of this section shall be allowed to resume such activities without obstruction by the unit owners association.

Sec. 5311.30. (A) If a unit owners association fails to fulfill any obligation imposed upon it by division (A) of section 5311.09 or section 5311.091 of the Revised Code, and the unit owner reasonably believes the unit owners association has failed to fulfill those obligations, then the unit owner may give notice, in writing, to the unit owners association board of directors specifying the acts, omissions, or violations that constitute noncompliance with the requirements of those sections.

(B) The notice described in division (A) of this section shall be sent to the person or location where unit owners association dues and fees are normally paid.

Sec. 5311.31. (A) If a unit owners association receives a notice described in section 5311.30 of the Revised Code, the association shall remedy the condition that is the subject of the notice within either of the following times, whichever is earlier:

(1) A reasonable time considering the severity of the condition and the time necessary to remedy it;

(2) Within thirty days after receipt of the notice.

(B)(1) Except as provided for in division (C) of this section, if a unit owners association fails to remedy the act, omission, or violation that is the subject of the notice within the time allotted under division (A) of this section, then the unit owner may do either of the following:

(a) Deposit any dues or fees that are due and thereafter become due to the unit owners association with the clerk of the municipal or county court having jurisdiction in the territory in which the unit is located;

(b) Apply to the court for an order directing the unit owners association to remedy the act, omission, or violation that is the subject of the notice.

(2) In any order issued by a court pursuant to this section, the court may require the unit owner to deposit dues or fees with the clerk of court as provided in division (B)(1)(a) of this section.

(C) This section does not apply to a unit owner that is not in good standing with the unit owners association prior to the unit owner sending notice to the unit owners association pursuant to section 5311.30 of the Revised Code.

Sec. 5311.32. (A) Whenever a unit owner deposits dues or fees with the clerk of a court pursuant to section 5311.31 of the Revised Code, the clerk shall give written notice of this fact to the unit owners association and to the association's agent, if any.

(B)(1) The clerk shall place all dues or fees deposited with the clerk in a separate rent escrow account in the name of the clerk in a bank or building and loan association domiciled in this state.

(2) All interest that accrues on the dues or fees deposited by the clerk of a county court under division (B)(1) of this section shall be paid into the treasury of the political subdivision for which the clerk performs the clerk's duties.

(3) All interest that accrues on the dues or fees deposited by the clerk of a municipal court under division (B)(1) of this section shall be paid into the city treasury as defined in section 1901.03 of the Revised Code.

(C) The clerk shall keep in a separate docket an account of each deposit, with the name and address of the unit owner, and the name and address of the unit owners association and the association's agent, if any.

(D) The clerk may charge a fee of one per cent of the amount of the dues or fees deposited, which shall be assessed as court costs.

Sec. 5311.33. (A) A unit owners association who receives notice that fees or dues have been deposited with a clerk of a municipal or county court pursuant to section 5311.31 of the Revised Code may bring a cause of action for the release of the fees or dues on any of the following grounds:

(1) That the condition contained in the notice given pursuant to section 5311.30 of the Revised Code has been remedied. If the unit owner gives written notice to the clerk that the condition has been remedied, the clerk shall forthwith release the fees or dues, less costs, to the unit owners association.

(2) That the unit owner did not comply with the notice requirements of section 5311.30 of the Revised Code;

(3) That the unit owner was not in good standing with the unit owners association at the time the unit owner initiated deposits with the clerk of the court under section 5311.31 of the Revised Code;

(4) That there was no act, omission, or violation of any obligation imposed upon the unit owners association as described in section 5311.30 of the Revised Code, or that the act, omission, or violation that was the subject of the notice has been remedied.

(B) The unit owner shall be named as a party to any action by the unit owners association under this section and has the right to file an answer and counterclaim, as in other civil actions.

(C) A trial shall be held within sixty days after the date of the filing of the unit owners association's complaint, unless, for good cause shown, the court continues the period for trial.

Sec. 5311.34. (A) If the court finds any of the grounds put forth by a unit owners association pursuant to section 5311.33 of the Revised Code to be valid, the court shall order the release to the unit owners association of any dues or fees with the clerk, less costs.

(B) If the court finds either of the following, the unit owner is liable for damages caused to the unit owners association and costs, together with reasonable attorney's fees if the unit owner intentionally acted in bad faith:

(1) The condition contained in the notice given pursuant to section 5311.30 of the Revised Code was the result of an act or omission of the unit owner.

(2) The unit owner intentionally acted in bad faith in proceeding under section 5311.31 of the Revised Code.

Sec. 5311.35. If the court determines that the condition contained in the notice sent pursuant to section 5311.30 of the Revised Code exists, then the court shall order the unit owners association to remedy the condition. If the unit owners association fails to remedy the condition, the association shall be ordered to pay damages to the affected unit owner. The amount of damages shall be based on how long the unit owners association remains noncompliant with the court's order:

(A) After one month of noncompliance, the damages shall be one hundred dollars.

(B) After two months of noncompliance, the damages shall be five hundred dollars.

Sec. 5312.03. (A)(1) An owners association shall administer a planned community, and a board of directors the owners elect from among the owners and their spouses shall exercise all power and authority of the owners association. If an owner is not an individual, any principal, member of a limited liability company, partner, director, officer, trustee, or employee of the owner may be elected to the board. The majority of the board shall not consist of owners or representatives from the same lot unless authorized by a resolution adopted by the board of directors prior to the board majority being comprised of owners or representatives from the same lot.

(2) Unless otherwise provided, a board of directors may carry out any action this chapter requires or allows an owners association to take, subject to any vote required of the owners.

(B) A declarant shall establish an owners association not later than the date upon which the first lot in the planned community is conveyed to a bona fide purchaser for value. The owners association shall be organized as a nonprofit corporation pursuant to Chapter 1702. of the Revised Code.

(C)(1) If provided in the declaration, a declarant may control the owners association for the period of time the declaration specifies. During the time of declarant control, the declarant or the declarant's designee may appoint and remove the members of the board. The period of declarant control shall terminate not later than the time at which all of the lots have been transferred to owners.

(2) Not later than the termination of any period of declarant control, the owners shall elect a board of directors comprised of the number of members the declaration or bylaws specify.

(D) Unless otherwise provided in the declaration, after the termination of the period of declarant control and once the owners association is established, when a vote of the owners association is required, each owner shall receive one vote for each lot owned in the planned community, except that the total votes allocated to any particular owner shall not exceed forty-nine per cent of the total voting power of the owners association.

Sec. 5312.04. (A) A board of directors of an owners association shall elect officers from the members of the board, to include a president, secretary, treasurer, and other officers as the board designates.

(B) A board may act in all instances on behalf of an association unless otherwise provided in this chapter, the declaration, or bylaws. The board may appoint persons to fill vacancies in its membership for the unexpired portion of any term.

(C) Except during a period of declarant control, the board shall call a meeting of the owners association at least once each year. Special meetings may be called by the president, a majority of the board, owners representing fifty per cent of the voting power in the owners association, or any lower share of the voting power as the declaration or bylaws specify.

(D) The board may hold a meeting by any method of communication, including electronic or telephonic communication, provided that each member of the board can hear or read in real time and participate and respond to every other member of the board.

(E) In lieu of conducting a meeting, the board may take an action with the unanimous written consent of the members of the board. Any written consent shall be filed with the minutes of the meetings of the board.

(F) No owner other than a director may attend or participate in any discussion or deliberation of a meeting of the board of directors unless the board expressly authorizes that owner to attend or participate.

~~(G)~~ The board of directors of an owners association shall comply with all applicable state and federal laws concerning prohibitions against discrimination on the basis of race, color, religion, sex, military status, national origin, disability, age, or ancestry, including, but not limited to, Chapter 4112. of the Revised Code. No private right of action additional to those conferred by the applicable state and federal anti-discrimination laws is conferred on any aggrieved individual by the preceding sentence.

(E) Any funds allocated by the board of directors of the owners association shall be used for the general good of all the members of the association, including common expenses described under section 5312.10 of the Revised Code.

Sec. 5312.041. (A) As used in this section, "meeting" means any prearranged discussion of the public business of the board of directors of an owners association by a majority of its members. "Meeting" does not include the following:

(1) Executive sessions of a board of directors;

(2) When the primary topic concerns one or more specific owners to discuss possible violations or other matters personal to the owner or owners.

(B) All meetings of the owners association are open to every owner, regardless of standing, to attend and participate in any discussion or deliberation. Those present, in person or by proxy, when action is taken during a meeting of the owners association constitute a sufficient quorum. The board of directors shall make minutes from such meetings available to all owners.

(C)(1) A meeting of the board of directors may be held by any method of communication, including electronic or telephonic communication, provided that each member of the board and each owner who elects to attend or participate under division (B) of this section can hear, participate, and respond to all other participants.

(D) An owners association shall provide notice to owners of the time and place of all regularly scheduled meetings and the time, place, and purpose of any special meetings. Notice may be provided by any method reasonably calculated to be received by the majority of owners.

Sec. 5312.042. (A) A member of the board of directors of an owners association that chooses to designate a person as a proxy to vote at a board meeting shall comply with the following:

(1) The member shall state the member's votes in writing and have the person delivering the proxy vote approve and sign the form prior to the vote taking place.

(2) A member shall designate a person as a proxy on a per-meeting basis.

(3) No person shall control more than ten per cent of proxy votes at a meeting.

(B) The board of directors of an owners association, when voting on a budget, shall not control a majority of the votes by proxy.

Sec. 5312.06. (A) The owners association, through its board of directors, shall do both of the following:

(1) Annually adopt and amend an estimated budget for revenues and expenditures, subject to the approval of the majority of the owners association members present at the meeting, as described in division (B) of section 5312.041 of the Revised Code. Any budget shall include reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, unless the owners, exercising not less than a majority of the voting power of the owners association, waive the reserve requirement in writing annually.

(2) Collect assessments for common expenses from owners in accordance with section 5312.10 of the Revised Code.

(B) Commencing not later than the time of the first conveyance of a lot to a person other than a declarant, the owners association shall maintain all of the following to the extent reasonably available and applicable:

(1) Property insurance on the common elements;

(2) Liability insurance pertaining to the common elements;

(3) Directors and officers liability insurance;

(4)(a) Blanket fidelity, crime, or dishonesty insurance coverage for any person who controls or disburses association funds. As used in division (B)(4)(a) of this section, "person who controls or disburses association funds" means any individual with authority or access to sign checks, conduct electronic transfers, or otherwise withdraw funds from any association account or deposit, including the following:

(i) A management company's principals and employees;

(ii) A bookkeeper;

(iii) The president, secretary, treasurer, any other board member, or employee of the owners association.

(b) All of the following apply to the insurance coverage required under division (B)(4)(a) of this section:

(i) Coverage shall be for the maximum amount of funds that will be in the custody of the association or its designated agent at any one time plus three months of operating expenses.

(ii) The insurance shall be the property of and for the sole benefit of the association and shall protect against theft, embezzlement, misappropriation, or any other unauthorized taking or loss of association funds.

(iii) The policy shall include in its definition of "employee" the manager and the managing agent of the association's funds or provide for this inclusion by an endorsement to the policy.

(iv) The policy shall name the association as the insured party and shall include a provision requiring the issuer of the policy to provide a ten-day written notice to the association's president or manager in the event of cancellation or substantial modification of the policy. The manager or managing agent, if any, of the association shall be the designated agent on the policy.

(v) If there is a change in the manager or the managing agent of the association, then within ten days of the effective start date, the new manager or managing agent shall notify the insurer of such change.

(1) Correct and complete books and records of account that specify the receipts and expenditures relating to the common elements and other common receipts and expenses, including all relevant records related to the allocation of funds, bank records, bank reconciliation documents, and any other financial documents;

(2) Records showing the collection of the common expenses from the owners;

(3) Minutes of the meetings of the association and the board of directors;

(4) Records of the names and addresses of the owners.

(D) An owners association, through its board of directors, may do any of the following:

(1) Hire and fire managing agents, attorneys, accountants, and other independent professionals and employees that the board determines are necessary or desirable in the management of the property and the association;

(2) Commence, defend, intervene in, settle, or compromise any civil, criminal, land use planning, or administrative action or proceeding that is in the name of, or threatened against, the association, the board of directors, or the property, or that involves two or more owners, impacts zoning, or otherwise relates to matters affecting the property;

(3) Enter into contracts and incur liabilities relating to the operation of the property;

(4) Enforce all provisions of the declaration, bylaws, covenants, conditions, restrictions, and articles of incorporation governing the lots, common elements, and limited common elements;

(5) Adopt and enforce rules that regulate the maintenance, repair, replacement, modification, and appearance of common elements, and any other rules as the declaration provides;

(6) Acquire, encumber, and convey or otherwise transfer real and personal property, subject to section 5312.10 of the Revised Code;

(7) Hold in the name of the owners association the real property and personal property;

(8) Grant easements, leases, licenses, and concessions through or over the common elements;

(9) Levy and collect fees or other charges for the use, rental, or operation of the common elements or for services provided to owners;

(10) Pursuant to section 5312.11 of the Revised Code, levy the following charges and assessments:

(a) Interest and charges for the late payment of assessments;

(b) Returned check charges;

(d) Charges for damage to the common elements or other property.

(11) Adopt and amend rules that regulate the collection of delinquent assessments and the application of payments of delinquent assessments;

(12) Impose reasonable charges for preparing, recording, or copying the declaration, bylaws, amendments to the declaration and bylaws, resale certificates, or statements of unpaid assessments;

(13) Authorize entry to any portion of the planned community by designated individuals when conditions exist that involve an imminent risk of damage or harm to common elements, another dwelling unit, or to the health or safety of the occupants of that dwelling unit or another dwelling unit;

(14) Subject to division (A)(1) of section 5312.09 of the Revised Code, borrow money and assign the right to common assessments or other future income to a lender as security for a loan to the owners association;

(15) Suspend the voting privileges and use of recreational facilities of an owner who is delinquent in the payment of assessments for more than thirty days;

(16) Purchase insurance and fidelity bonds the directors consider appropriate and necessary;

(17) Invest excess funds in investments that meet standards for fiduciary investments under the laws of this state;

(18) Exercise powers that are any of the following:

(a) Conferred by the declaration or bylaws;

(b) Necessary to incorporate the owners association as a nonprofit corporation;

(d) Necessary and proper for the government and operation of the owners association.

Sec. 5312.08. (A) Unless otherwise provided by the declaration, the owners association is responsible for reasonable maintenance, repair, and replacement of the common elements, and each owner is responsible for maintenance, repair, and replacement of the owner's lot and improvements to that lot, including the dwelling unit and the utility lines serving that dwelling unit.

~~(B) An owner shall permit agents~~ (B)(1) Agents or employees of the owners association ~~and~~ or other owners that want access through ~~the~~ an owner's lot ~~and~~ or dwelling unit for the purpose of fulfilling the association's duties and obligations shall first obtain the owner's express permission. Any damage to the common elements, lot, or dwelling unit due to that access is the responsibility of the owner that caused the damage or the owners association if it is responsible for the damage. That owner, or the owners association, is liable for the prompt repair of any damage and, if not repairable, for the value of the damaged property or item as it existed immediately prior to that damage.

(2) An owner's permission to enter into the owner's lot or dwelling unit is not needed if the reason for the entrance is for public safety or in order to prevent damage to or destruction of any other part of the planned community property, as determined by the board of directors of the owners association.

Sec. 5312.11. (A) An owners association may assess an individual lot for any of the following:

(1) Enforcement assessments and individual assessments for utility service that are imposed or levied in accordance with the declaration, as well as expenses the board incurs in collecting those assessments;

(2) Costs of maintenance, repair, or replacement incurred due to the willful or negligent act of an owner or occupant of a lot or their family, tenants, guests, or invitees, including, but not limited to, attorney's fees, court costs, and other expenses;

(3) Costs associated with the enforcement of the declaration or the rules and regulations of the owners association, including, but not limited to, attorney's fees, court costs, and other expenses;

(4) Costs or charges the declaration or bylaws permit.

(B) Unless otherwise provided by the declaration, bylaws, or rules, the owners association shall credit any amount it receives from a lot owner pursuant to this section in the following order:

(1) To interest owed to the owners association;

(2) To administrative late fees or enforcement assessments owed to the owners association;

(3) To collection costs, attorney's fees, and paralegal fees the owners association incurred in collecting the assessment;

(4) To the oldest principal amounts the owner owes to the owners association for the common expenses chargeable against the dwelling unit or lot.

(C)(1) Prior to imposing a charge for damages or an enforcement assessment pursuant to this section, the board of directors shall give the owner a written notice, which may be in the form of electronic mail to an electronic mail address previously provided by the owner in writing, that includes all of the following:

~~(1)~~(a) A description of the property damage or violation;

~~(2)~~(b) Corroborating evidence of the property damage or violation, including pictures, videos, or any other kinds of physical or photographic evidence;

~~(3)~~(d) A statement that the owner has a right to a hearing before the board to contest the proposed charge or assessment;

~~(4)~~(e) A statement setting forth the procedures to request a hearing;

~~(5)~~(f) A reasonable date by which the owner must cure a continuing violation to avoid the proposed charge or assessment, if such an opportunity to cure is applicable.

(2) An owners association that has not provided the evidence described in division (C)(1)(b) of this section shall not impose a charge on an owner pursuant to this division.

(D)(1) To request a hearing, the owner shall deliver a written notice to the board not later than the tenth day after receiving the notice this division requires. If the owner fails to make a timely request for a hearing, the right to that hearing is waived, and the board immediately may impose a charge for damages or an enforcement assessment pursuant to this section.

(2) If an owner requests a hearing, at least seven days prior to the hearing the board shall provide the owner with a written notice that includes the date, time, and location of the hearing.

(3) The board shall not levy a charge or assessment before holding any hearing requested pursuant to this section.

(4) Within thirty days following a hearing at which the board imposes a charge or assessment, the owners association shall deliver a written notice of the charge or assessment to the owner.

(5) Any written notice that this section requires shall be delivered to the owner or any occupant of the dwelling unit by personal delivery, by certified mail, return receipt requested, or by regular mail.

Sec. 5312.17. (A) An owners association may prohibit short-term renting of dwelling units if prospective owners are given adequate notice that short-term renting is prohibited.

(B) Any owner that was prohibited from using the owner's dwelling unit as a short term rental by an owners association prior to the effective date of this section shall be allowed to resume such activities without obstruction by the owners association.

Sec. 5312.18. (A) If an owners association fails to fulfill any obligation imposed upon it by division (C) of section 5312.06 and section 5312.07 of the Revised Code, and the owner reasonably believes the owners association has failed to fulfill those obligations, then the owner may give notice, in writing, to the owners association governing board, specifying the acts, omissions, or violations that constitute noncompliance with the requirements of those sections.

(B) The notice described in division (A) of this section shall be sent to the person or location where owner association dues and fees are normally paid.

Sec. 5312.19. (A) If an owners association receives the notice described in section 5312.18 of the Revised Code, the association shall remedy the condition that is the subject of the notice within either of the following times, whichever is earlier:

(1) A reasonable time considering the severity of the condition and the time necessary to remedy it;

(2) Within thirty days after receipt of the notice.

(B)(1) Except as provided for in division (C) of this section, if an owners association fails to remedy the act, omission, or violation that is the subject of the notice within the time allotted under division (A) of this section, then the owner may do either of the following:

(a) Deposit any dues or fees that are due and thereafter become due to the owners association with the clerk of the municipal or county court having jurisdiction in the territory in which the owner's lot or dwelling unit is located;

(b) Apply to the court for an order directing the owners association to remedy the act, omission, or violation that is the subject of the notice.

(2) In any order issued by a court pursuant to this section, the court may require the owner to deposit dues or fees with the clerk of court as provided in division (B)(1)(a) of this section.

(C) This section does not apply to an owner that is not in good standing with the owners association prior to the owner sending notice to the owners association pursuant to section 5312.18 of the Revised Code.

Sec. 5312.20. (A) Whenever an owner deposits dues or fees with the clerk of a court as provided in section 5312.19 of the Revised Code, the clerk shall give written notice of this fact to the owners association and to the association's agent, if any.

(B)(1) The clerk shall place all dues or fees deposited with the clerk in a separate rent escrow account in the name of the clerk in a bank or building and loan association domiciled in this state.

(C) The clerk shall keep in a separate docket an account of each deposit, with the name and address of the owner and the name and address of the owners association and the association's agent, if any.

(D) The clerk may charge a fee of one per cent of the amount of the dues or fees deposited, which shall be assessed as court costs.

Sec. 5312.21. (A) An owners association who receives notice that fees or dues have been deposited with a clerk of a municipal or county court pursuant to section 5312.19 of the Revised Code may bring a cause of action for the release of the fees or dues on any of the following grounds:

(1) That the condition contained in the notice received pursuant to section 5312.18 of the Revised Code has been remedied. If the owner gives written notice to the clerk that the condition has been remedied, the clerk shall forthwith release the fees or dues, less costs, to the owners association.

(2) That the owner did not comply with the notice requirements of section 5312.18 of the Revised Code;

(3) That the owner was not in good standing with the owners association at the time the owner initiated deposits with the clerk of the court under section 5312.19 of the Revised Code;

(4) That there was no act, omission, or violation of any obligation imposed upon the owners association as described in section 5312.18 of the Revised Code, or that the act, omission, or violation that is the subject of the notice has been remedied.

(B) The owner shall be named as a party to any action by the owners association under this section and has the right to file an answer and counterclaim, as in other civil actions.

(C) A trial shall be held within sixty days after the date of the filing of the owners association's complaint, unless, for good cause shown, the court continues the period for trial.

Sec. 5312.22. (A) If the court finds any of the grounds put forth by an owners association pursuant to section 5312.21 of the Revised Code to be valid, the court shall order the release to the owners association of any dues or fees with the clerk, less costs.

(B) If the court finds either of the following, the owner is liable for damages caused to the owners association and costs, together with reasonable attorney's fees if the owner intentionally acted in bad faith:

(1) The condition contained in the notice given pursuant to section 5312.18 of the Revised Code was the result of an act or omission of the owner.

(2) The owner intentionally acted in bad faith in proceeding under section 5312.19 of the Revised Code.

Sec. 5312.23. If the court determines that the condition that is the subject of the notice sent pursuant to section 5312.18 of the Revised Code exists, then the court shall order the owners association to remedy the condition. If the owners association fails to remedy the condition, the association shall be ordered to pay damages to the affected owner. The amount of damages shall be based on the time the owners association remains noncompliant with the court's order:

(A) After one month of noncompliance, the damages shall be one hundred dollars.

(B) After two months of noncompliance, the damages shall be five hundred dollars.

Section 2. That existing sections 5311.03, 5311.08, 5311.081, 5311.09, 5311.22, 5312.03, 5312.04, 5312.06, 5312.08, and 5312.11 of the Revised Code are hereby repealed.