Restricts increases in monthly common expenses and limit special assessments to cover unforeseen costs not included in the condo association’s approved annual budget for common expenses where the minority of the units are deed-restricted units.

Rhode Island Condo Fee Increase Restriction Bill

This bill would place limits on how much a condominium association can raise monthly fees and charge special assessments in certain mixed-use condo developments. Specifically, it targets condo communities where some — but not the majority — of the units are "deed-restricted," meaning those units are designated as affordable housing with limits on their resale price or rental cost. In these mixed communities, the bill would cap how much the association can increase the regular monthly fees that all residents pay to cover shared building costs like maintenance, insurance, and utilities.

The bill would also restrict "special assessments," which are one-time charges that condo associations sometimes impose on residents to cover unexpected or emergency expenses that weren't planned for in the association's regular annual budget. These surprise charges can sometimes be quite large and difficult for residents to afford on short notice. Under this bill, those special assessments would be limited in developments that include a minority share of deed-restricted affordable units.

This legislation would most directly affect residents living in mixed-income condo developments — both affordable housing residents and market-rate unit owners — as well as the condo associations that manage those properties. Affordable housing residents in particular may benefit from more predictable housing costs, while condo associations may face more restrictions in how they fund building maintenance and unexpected repairs.

Currently, the bill has been referred to the House Corporations Committee and was recommended to be held for further study, meaning it has not yet advanced toward a full vote.