Defines a special assessment as an assessment that is not a part of the condominium association budget and would apply to condominiums created before July 1, 1982, but only apply with respect to events and circumstances occurring after that date.

Rhode Island Condominium Special Assessment Bill

This bill would add a clear legal definition of "special assessment" to Rhode Island's condominium law. Specifically, it defines a special assessment as any charge that a condominium association collects from unit owners that is not already included in the association's regular annual budget. In other words, if a condo association needs to collect extra money beyond its normal planned expenses — for example, to cover an unexpected major repair — that extra charge would officially be classified as a "special assessment" under state law.

The bill would apply to older condominiums built and established before July 1, 1982, which were created under earlier rules that may not have included this definition. Importantly, the bill would not reach back in time to affect past situations — it would only apply to events and circumstances that happen after the bill takes effect. This means condo associations and owners in older buildings would not face any retroactive changes to how past assessments were handled.

This legislation primarily affects residents and owners of older condominium buildings in Rhode Island, as well as the associations that manage them. By establishing a clear definition, the bill could help reduce disputes between condo owners and their associations about what qualifies as a special assessment versus a routine fee. Currently, the bill has been referred to the House Corporations Committee and has been recommended for further study, meaning lawmakers have not yet moved it forward for a full vote.