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

Rhode Island Condominium Safety and Financial Planning Bill

This bill would require condominium associations in Rhode Island to take specific steps to assess the physical condition of their buildings and set aside money for future repairs. Under the proposal, associations would need to hire professionals to conduct structural surveys — inspections that evaluate the safety and condition of the building's structure — as well as reserve studies, which are financial analyses that estimate how much money will be needed for major repairs and replacements over time. Based on these studies, associations would then be required to create a formal plan for addressing necessary maintenance and repairs.

A key financial requirement in the bill is that condominium associations must fund their reserve accounts at a minimum of 15% of their annual budget. Reserve funds are essentially savings accounts that associations build up over time to cover large, predictable expenses like roof replacements, elevator repairs, or structural fixes — rather than scrambling for money when something breaks down.

This bill would directly affect condominium associations and the people who live in condominiums across Rhode Island. For condo owners, it could mean greater confidence that their building is being properly maintained and that funds are available for major repairs. However, it could also result in higher monthly association fees if a building's reserves are currently underfunded. Building managers and association boards would face new administrative and financial responsibilities to comply with the requirements.

As of now, the bill has been referred to the Senate Housing and Municipal Government Committee and has been scheduled for further review, meaning it has not yet become law.