We urgently need your support to oppose damaging legislation currently being considered in the Rhode Island Senate. Senate Bill 2637 threatens to place an arbitrary cap of 5% on increases in condominium fees that can be assessed to an affordable deed restricted unit  compared to the previous year’s budget and also substantially limits the amount deed restricted units have to pay for special assessments.  Senate Bill 2637 would force non-restricted unit owners to make up the difference in fees that the affordable units are not paying for the same services in the same project.  This will apply to all condominiums where affordable units make up less than 50% of the units in the condominium.

By imposing these restrictions, SB 2637 unfairly burdens non-deed restricted unit owners and jeopardizes the association's capacity to meet the needs of the entire community. We need YOUR help to ensure fair and sustainable community management for all residents.

It's imperative to understand that the Association’s governing documents establish a rigorous process for determining assessments, ensuring transparency and fairness for every unit owner. The Rhode Island Condominium Act already allows the developer, when creating a development (or adding phases), to allocate a smaller percentage interest to affordable units, thus resulting in the affordable units having to pay a smaller condominium fee.  This information is recorded as part of the Declaration and all unit owners are on notice of their responsibility for assessments. This accommodation for affordable units already exists. 

If this cap is put into place, it may result in non-restricted unit owners (some who may have just barely qualified for their mortgage and are on fixed incomes) not being able to afford their homes.  There will be uncertainty as to what condominium fees will be for non-restricted owners and this will surely lead to a depression in condominium unit sales. Non-deed restricted unit owners will end up paying a higher percentage in condominium fees than they relied upon paying when they purchased their unit.  This will be disastrous for condominium associations statewide.

Your voice matters in protecting the interests of our community. Please join us in opposing SB 2637 and advocating for responsible governance that benefits all residents.

 

Please be aware that this call to action is intended for constituents of certain legislators in your state. If you are not one of their constituents, then please keep an eye on your inbox for future calls to action!