THE EVER-CHANGING NH CONDO ACT

It may be time to replace the expression “death and taxes” with “death, taxes and NH Condo Act amendments.” Year in, and year out, it seems the legislature will continue to make tweaks to the statute. We will utilize this space to keep you informed of such changes. Thankfully the changes in question are good ones in that they give a board more flexibility for informal meetings.

What has changed?

Under HB 1172, Section 37-c was amended to expand the definition of what is not considered a board meeting.

An official meeting will not include “informational sessions held by board members to obtain and compare vendor proposals, including but not limited to, landscaping, lawn care, snow removal, septic services, well services, insurance, window cleaning, and common area maintenance; provided that the review and vote on any motions resulting from the informational session shall be conducted at the next scheduled board meeting.”

Why does that definition matter?

Under the condo statute, unit owners are entitled to notice 10 days in advance of a board meeting. 

Moreover, the meeting must be open to the unit owners (except for executive session) and if materials are distributed during the meeting, those materials must be made available to the ownership on demand.

Under the revised language cited above, informal board sessions for the purpose of reviewing vendor proposals will not be subject to these requirements. A Board now has additional flexibility to meet and discuss such matters as they arise, without having to worry about the notice requirement.

As board members and managers well know, the board’s business does not always align with the board’s meeting schedule. This amendment now provides a board the flexibility to schedule a meeting to review vendor proposals as they come in and not be subjected to the rigors of section 37-c.

Note, however, that any vote to approve a vendor proposal must occur at a formal meeting.

Any other changes?

As noted above, at least 10 days’ notice is required to the owners for regular board meetings. 

The amended section 37-c now allows for just 5 days’ notice if “at least 70 percent of the unit owners are full-time residents.”  The idea behind this change is that if the condo is primarily comprised of owner-occupants, shorter notice is fine because owners can easily attend a meeting whereas more advanced notice is needed where owners do not live locally.

Additionally, the amendment provides that the meeting requirements of 37-c do not apply to committees created by a Board when that committee is not permitted to sign contracts or expend association funds.  Thus, for example, a landscaping committee whose purpose is to make recommendations to the Board would not be subject to the various meeting requirements imposed by section 37-c.

If you have questions or concerns regarding the amendmendments to the New Hampshire Condominium Act, please reach out to Dean Lennon directly at dlennon@meeb.com.