Requires condominium associations to conduct structural surveys and reserve studies, fund reserves at 15%, and plan for repairs.

Rhode Island Condo Safety and Financial Planning Bill

This bill would require condominium associations in Rhode Island to take specific steps to keep their buildings safe and financially prepared for future repairs. Under the proposal, condo associations would need to regularly conduct structural surveys — professional inspections that assess the physical condition of the building — as well as reserve studies, which are financial analyses that estimate how much money will be needed for major repairs and replacements down the road. Based on these studies, associations would also be required to create formal plans outlining how and when they intend to address identified maintenance and repair needs.

A key financial requirement in the bill is that condo associations must fund their reserve accounts at a minimum of 15% of their annual budget. Reserve funds are essentially a savings account that associations use to cover large, unexpected, or long-term repair costs — things like roof replacements, elevator repairs, or structural fixes. Currently, many associations may underfund these accounts, leaving them unprepared when major expenses arise.

This bill directly affects condo owners, condo associations, and their boards of directors across Rhode Island. Condo owners could benefit from greater building safety and financial stability, though the requirements could also lead to higher monthly fees if associations need to increase contributions to meet the 15% reserve funding threshold. Association boards would take on new legal responsibilities to comply with inspection and planning requirements.

As of now, the bill has been referred to the House Corporations Committee and recommended for further study, meaning it has not yet been passed into law.