2026 -- S 3094

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LC006103

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO PROPERTY -- HOMEOWNERS ASSOCIATION LAW

     Introduced By: Senator David P. Tikoian

     Date Introduced: March 13, 2026

     Referred To: Senate Housing & Municipal Government

     (by request)

It is enacted by the General Assembly as follows:

     SECTION 1. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by

adding thereto the following chapter:

CHAPTER 36.2

RHODE ISLANDS HOMEOWNERS' ASSOCIATION LAW

     34-36.2-1. Short title.

     This chapter shall be known and may be cited as the "Rhode Island Homeowner's

Association Act"

     34-36.2-2. Legislative findings-purpose-applicability.

     (a) The general assembly finds that:

     (1) Residential communities governed by homeowners’ associations exercise substantial

authority affecting property rights and financial obligations of homeowners;

     (2) Uniform statutory standards are necessary to promote transparency, fairness, and

accountability in association governance;

     (3) Clear procedures governing meetings, financial management, elections, and dispute

resolution reduce conflict and litigation.

     (4) Alternative dispute resolution provides an efficient and cost-effective means of

resolving disputes within common-interest communities.

     (b) The purpose of this chapter is to:

     (1) Establish minimum governance standards for homeowners’ associations operating

within this state; and

     (2) Protect the rights of association members while preserving the operational ability of

associations to perform their functions.

     (c) This chapter applies to homeowners’ associations consisting of ten (10) or more

separately owned parcels unless otherwise provided by law.

     34-36.2-3. Definitions.

     As used in this chapter, the following terms shall have the meanings set forth below:

     (1) “Annual budget dues” means the recurring assessments levied pursuant to the

association’s adopted annual budget.

     (2) “Assessment” means a share of the funds required for payment of common expenses,

annual budget dues, or any assessment for expenses in excess of or different from annual budget

dues and other operational expenses, including special assessments assessed against members from

time to time.

     (3) “Association” or “homeowners’ association” means a Rhode Island corporation

responsible for the operation of a residential community or mobile home subdivision in which

membership is mandatory as a condition of parcel ownership and which is authorized to impose

assessments that may become a lien if unpaid.

     (4) “Board” or “board of directors” means the representative body responsible for

administration of the association.

     (5) “Common area” means all real property within a community owned or leased by an

association or dedicated for use or maintenance by the association or its members, regardless of

whether title has been conveyed to the association.

     (6) “Common elements” means portions of association property excluding residential

dwellings of which a member has title.

     (7) “Declaration” or “declaration of covenants” means a recorded written instrument

creating covenants running with the land and subjecting the land comprising the community to the

jurisdiction and control of an association.

     (8) “Developer” means a person or entity that creates the community served by the

association or succeeds to the rights and liabilities of the creator, as evidenced in writing.

     (9) “Governing documents” means the recorded declaration of covenants and all duly

adopted amendments, supplements, exhibits, articles of incorporation, bylaws, and rules and

regulations of the association.

     (10) “Limited common element” means a portion of the common elements allocated by

declaration or by operation for the exclusive use of one or more but fewer than all parcels or units.

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     (11) “Member” means a parcel owner or association representative obligated under the

governing documents to pay assessments or association fees.

     (12) “Parcel” means a platted or unplotted lot, tract, unit, or other subdivision of real

property within a community that is capable of separate conveyance and subject to mandatory

association membership.

     (13) “Presuit mediation” means a dispute resolution process conducted by a neutral third-

party mediator prior to filing civil litigation under this chapter.

     (14) “Special assessment” means any assessment levied for expenses differing from annual

dues, including capital improvement or replacement expenses.

     (15) “Unit” means a physical portion of association property designated for separate

ownership or occupancy.

     (16) “Voting interest” means the voting rights distributed to members pursuant to the

governing documents.

     34-36.2-4. Amendment of governing documents.

     (a) Governing documents may be amended only as provided by this chapter.

     (b) Unless a greater vote is required, amendments shall require approval of:

     (1) Members holding more than fifty percent (50%) of voting interests; and

     (2) Not less than two-thirds (2/3) of the board; or

     (3) Members in excess of sixty-six and two thirds percent (66 2/3%) of the voting interest

in the association.

     (c) No bylaw or declaration shall be revised or amended by reference to its title or number

only and proposals to amend existing bylaws or declarations shall contain the full text of the bylaws

or declaration to be amended; new words shall be inserted in the text underlined, and words to be

deleted shall be lined through with hyphens. However, if the proposed change is so extensive, it is

not necessary to use underlining and hyphens as indicators of words added or deleted, but, instead

a notation shall be inserted immediately preceding the proposed amendment in substantially the

following language: "Substantial rewording of bylaw or declaration. See bylaw or declaration for

present text"

     (d) Nonmaterial errors of omission in the bylaws and declaration process will not invalidate

an otherwise properly promulgated amendment.

     (e) Every amendment to the declaration must be recorded in every municipality in which

any portion of the association is located and is effective only upon recordation. An amendment

shall be indexed in the grantee's index in the name of the homeowner's association and of the

grantor's index in the name of the parties executing the amendment.

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     (g) Amendments to the declaration required by this chapter to be recorded by the

association shall be prepared, executed, recorded, and certified on behalf of the association by any

officer of the association designated for that purpose or, in the absence of designation, by the

president of the association.

     34-36.2-5. Association powers and duties-board governance.

     (a) Directors and officers owe a fiduciary duty to members.

     (b) Meetings of the board shall be open to members except for executive sessions involving

litigation, personnel matters, or attorney-client privileged communications.

     (c) The board of directors shall retain a copy of the homeowner’s association law, and any

amendments to the chapter promulgated each year.

     (d) Notice of board meetings shall be provided at least fourteen (14) days in advance unless

emergency circumstances exist. Members of the board of administration may use email as a means

of communication but may not cast a vote on an association matter via email. A meeting of the

board of directors of an association occurs whenever a quorum of the board gathers to conduct

association business. Meetings of the board must be open to all members, except for meetings

between the board and its attorney with respect to proposed or pending litigation where the contents

of the discussion would otherwise be governed by the attorney-client privilege.

     (e) Members have the right to attend all meetings of the board. The right to attend such

meetings includes the right to speak at such meetings with reference to all designated agenda items.

The association may adopt written reasonable rules expanding the right of members to speak and

governing the frequency, duration, and other manner of member statements, which rules must be

consistent with this section and may include a sign-up sheet or other form of registration for

members wishing to speak. Notwithstanding any other law to the contrary, meetings between the

board or a committee and the association's attorney to discuss proposed or pending litigation or

meetings of the board held for the purpose of discussing personnel matters are not required to be

open to the members other than directors.

     (f) The bylaws shall provide the following for giving notice to parcel owners and members

of all board meetings:

     (1) Notices of all board meetings must specifically identify agenda items for the meetings

and must be posted in a conspicuous place in the community at least forty-eight (48) hours in

advance of a meeting, except in an emergency. In the alternative, if notice is not posted in a

conspicuous place in the community, notice of each board meeting must be mailed or delivered to

each member at least seven (7) days before the meeting, except in an emergency. Notwithstanding

this general notice requirement, for communities with more than one hundred (100) members, the

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association bylaws may provide for a reasonable alternative to posting or mailing of notice for each

board meeting, including publication of notice, provision of a schedule of board meetings, or the

conspicuous posting. In addition to any of the authorized means of providing notice of a meeting

of the board, the association may, by rule, adopt a procedure for conspicuously posting the meeting

notice and the agenda on the association's website or an application that can be downloaded on a

mobile device for at least the minimum period of time for which a notice of a meeting is also

required to be physically posted on the association property. Any rule adopted must, in addition to

other matters, include a requirement that the association send an electronic notice to members

whose email addresses are included in the association's official records in the same manner as is

required for a notice of a meeting of the members. A member must consent in writing to receiving

notice by electronic transmission.

     (2) An assessment may not be levied at a board meeting unless the notice of the meeting

includes a statement that assessments will be considered and the nature of the assessments. Written

notice of any meeting at which special assessments will be considered or at which amendments to

rules regarding parcel use will be considered must be mailed, delivered, or electronically

transmitted to the members and parcel owners and posted conspicuously on the property or

broadcast on closed-circuit cable television not less than fourteen (14) days before the meeting.

     (3) Directors may not vote by proxy or by secret ballot at board meetings, except that secret

ballots may be used in the election of officers.

     (g) If twenty percent (20%) of the total voting interests petition the board to address an

item of business, the board shall at its next regular board meeting or at a special meeting of the

board, but not later than sixty (60) days after the receipt of the petition, take the petitioned item up

on an agenda. The board shall give all members notice of the meeting at which the petitioned item

shall be addressed in accordance with the fourteen (14) day notice requirement pursuant to

subsection (f)(2) of this section. Each member shall have the right to speak for at least three (3)

minutes on each matter placed on the agenda by petition; provided that, the member signs the sign-

up sheet, if one is provided, or submits a written request to speak prior to the meeting. Other than

addressing the petitioned item at the meeting, the board is not obligated to take any other action

requested by the petition.

     34-36.2-6. Members’ meetings.

     (a) Annual meeting. The annual member's meeting shall be held on the date, at the place

located upon the association property and at the time determined by the board of directors from

time to time; provided that, there shall be an annual meeting every calendar year and to the extent

possible, no later than thirteen (13) months after the last preceding annual meeting. The purpose of

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the meeting shall be, except as provided herein to the contrary, to elect board of directors and to

transact any other business authorized to be transacted by the members, or as stated in the notice

of the meeting sent to association members in advance thereof.

     (1) Board of directors organization meeting. Immediately following the annual meeting of

the election of officers, the new board shall have an organizational meeting to elect officers.

     (b) Special meetings. Special members meetings shall be held at such places as provided

herein for annual meetings and may be called by the president or by majority of the board of

directors of the association, and must be called by the president or secretary upon receipt of a

written request form from a majority of the members of the association or upon receipt of a written

application of ten percent (10%) of the voting interests to the board or such other percentage as

may be required. The business conducted at a special meeting shall be limited to that stated in the

notice of the meeting. Special meetings may also be called by association members in the manner

provided.

     34-36.2-7. Member owner complaints.

     In the event that a unit owner shall file with the board of directors a written complaint

delivered by the United States first class mail, return receipt requested, the board shall, within thirty

(30) days of receipt of complaint, respond in writing to the member owner filing such complaint.

Such response shall either:

     (1) set forth a substantive response to the complaint; or

     (2) notify the member owner that a legal opinion has been requested. ln the event the board

of directors shall request a legal opinion, the board of directors shall, within sixty (60) days after

its receipt of the complaint, provide in writing a substantive response to the member owner.

     34-36.2-8. Minutes.

     (a) Minutes of all meetings of the members of an association and of the board of directors

of an association must be maintained in written form or in another form that can be converted into

written form within a reasonable time. A vote or abstention from voting on each matter voted upon

for each director present at a board meeting must be recorded in the minutes.

     (b) Official records. The association shall maintain the following items, when applicable,

for at least seven (7) years, unless the governing documents of the association require a longer

period of time, which constitute the official records of the association:

     (1) Copies of any plans, specifications, permits, and warranties related to improvements

constructed on the common areas or other property that the association is obligated to maintain,

repair, or replace.

     (2) A copy of the bylaws of the association and of each amendment to the bylaws.

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     (3) A copy of the articles of incorporation of the association and of each amendment

thereto.

     (4) A copy of the declaration of covenants and a copy of each amendment thereto.

     (5) A copy of the current rules of the homeowners' association.

     (6) The minutes of all meetings of the board of directors and of the members.

     (7) All of the association’s insurance policies or a copy thereof.

     (8) A current copy of all contracts to which the association is a party including, without

limitation, any management agreement, lease, or other contract under which the association has

any obligation or responsibility. Bids received by the association for work to be performed are

considered official records and must be kept for a period of one year.

     (9) The financial and accounting records of the association, kept according to good

accounting practices. The financial and accounting records must include all tax returns, financial

statements, and financial reports of the association.

     (10) Ballots, sign-in sheets, voting proxies, and all other papers and electronic records

relating to voting by parcel owners, which must be maintained for at least 1 year after the date of

the election, vote, or meeting including the following:

     (i) The articles of incorporation of association and each amendment thereto;

     (ii) The recorded bylaws of the association and each amendment thereto;

     (iii) The declaration of covenants and a copy of each amendment thereto;

     (iv) The current rules of the association; and

     (v) The annual budget and any proposed budget to be considered at the annual meeting.

     (c) Inspection and copying of records. Unless otherwise provided by law or the governing

documents of the association, the official records must be maintained within this state for at least

seven (7) years and be made available to a member for inspection or photocopying.

     34-36.2-9. Assessments.

     (a) Annual budget. The association shall prepare an annual budget or annual dues that sets

out the annual operating expenses. The budget must reflect the estimated revenues and expenses

for that year and the estimated surplus or deficit as of the end of the current year.

     (b) Reserves. The association shall have the power to adopt a budget that include reserves

for capital expenditures and deferred maintenance. Additionally, the association may create a

reserve account for a shortfall of the annual budget amount to cover year end invoice payments and

other payments such as payroll.

     (1) Funds collected for each capital expenditure improvement or replacement shall

establish a separate reserve account.

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     (2) An association is deemed to have provided for reserve accounts upon the affirmative

approval of a majority of the total voting interests of the association. Such approval may be obtained

by vote of the members at a duly called meeting of the membership or by the written consent of a

majority of the total voting interests of the association. The approval action of the membership

must state that reserve accounts shall be provided for in the budget and must designate the

components for which the reserve accounts are to be established. Upon approval by the

membership, the board of directors shall include the required reserve accounts in the budget in the

next fiscal year following the approval and each year thereafter. Once established as provided in

this subsection, the reserve accounts must be funded or maintained or have their funding waived in

the manner provided in section (b)(4) of this section.

     (3) The amount to be reserved in any account established shall be computed by means of a

formula that is based upon estimated remaining useful life and estimated replacement cost or

deferred maintenance expense of each reserve item. The association may adjust replacement

reserve assessments annually to take into account any changes in estimates of cost or useful life of

a reserve item.

     (4) After one or more reserve accounts are established, the membership of the association,

upon a majority vote at a meeting at which a quorum is present, may provide for no reserves or less

reserves than required by this section. If a meeting of the parcel owners has been called to determine

whether to waive or reduce the funding of reserves and such result is not achieved or a quorum is

not present, the reserves as included in the budget go into effect, pursuant to this subsection to

waive or reduce reserves is applicable only to one budget year.

     (c) Special assessments.

     (1) Whenever in the judgment of the board of directors, the common elements, or any part

thereof, shall require capital additions, alterations or improvements (as distinguished from

maintenance, repairs and replacements) costing in excess of fifteen thousand dollars ($15,000) in

the aggregate in any calendar year, the association may proceed with such additions, alterations or

improvements only if the making of such additions, alterations or improvements shall have been

approved by a majority of the voting interest of the members represented at a meeting at which a

quorum is attained. Any such additions, alterations or improvements to such common elements, or

any part thereof, costing of the aggregate fifteen thousand dollars ($15,000) or less in a calendar

year may be made by the board of directors without approval of the members.

     34-36.2-10. Recall of directors.

     (a) Notwithstanding of any provision to the contrary contained in the governing documents,

any member of the board of directors may be recalled and removed from office with or without

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cause by a majority of the total voting interests.

     (b) If a vacancy occurs on the board as a result of a recall and less than a majority of the

board of directors are removed, the vacancy may be filled by the affirmative vote of a majority of

the remaining directors, notwithstanding any provision to the contrary contained in this subsection

or in the association documents. If vacancies occur on the board as a result of a recall and a majority

or more of the board directors are removed, the vacancies shall be filled by members voting in

favor of the recall; if removal is at a meeting, any vacancies shall be filled by the members at the

meeting. If the recall occurred by agreement in writing or by written ballot, members may vote for

replacement directors in the same instrument in accordance with procedural rules adopted by the

division, which rules need not be consistent with this subsection.

     34-36.2-11. Compensation prohibited.

     A director, officer, or committee member of the association may not receive any salary or

compensation from the association for the performance of duties as a director, officer, or committee

member and may not in any other way benefit financially from service to the association.

     34-36.2-12. Notice of meetings.

     The bylaws shall provide for giving notice to members of all member meetings, and if they

do not do so shall be deemed to provide the following: The association shall give all parcel owners

and members actual notice of all membership meetings, which shall be mailed, delivered, or

electronically transmitted to the members not less than fourteen (14) days prior to the meeting.

Evidence of compliance with this fourteen (14) day notice shall be made by an affidavit executed

by the person providing the notice and filed upon execution among the official records of the

association. In addition to mailing, delivering, or electronically transmitting the notice of any

meeting, the association may, by reasonable rule, adopt a procedure for conspicuously posting and

repeatedly broadcasting the notice and the agenda on a closed-circuit cable television system

serving the association. When broadcast notice is provided, the notice and agenda must be

broadcast in a manner and for a sufficient continuous length of time so as to allow an average reader

to observe the notice and read and comprehend the entire content of the notice and the agenda.

     34-36.2-13. Right to speak.

     Members and parcel owners have the right to attend all membership meetings and to speak

at any meeting with reference to all items opened for discussion or included on the agenda.

Notwithstanding any provision to the contrary in the governing documents or any rules adopted by

the board or by the membership, a member and a parcel owner have the right to speak for at least

three (3) minutes on any item. The association may adopt written reasonable rules governing the

frequency, duration, and other manner of member and parcel owner statements, which rules must

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be consistent with this subsection.

     34-36.2-14. Proxy voting.

     The members have the right, unless otherwise provided in this section or in the governing

documents, to vote in person or by proxy. To be valid, a proxy must be dated, must state the date,

time, and place of the meeting for which it was given, and must be signed by the authorized person

who executed the proxy. A proxy is effective only for the specific meeting for which it was

originally given, as the meeting may lawfully be adjourned and reconvened from time to time, and

automatically expires ninety (90) days after the date of the meeting for which it was originally

given. A proxy is revocable at any time at the pleasure of the person who executes it. If the proxy

form expressly so provides, any proxy holder may appoint, in writing, a substitute to act in his or

her place.

     34-36.2-15. Elections and board vacancies.

     (a) Elections of directors must be conducted in accordance with the procedures set forth in

the governing documents of the association. Except as provided below:

     (1) All members of the association are eligible to serve on the board of directors, and a

member may nominate himself or herself as a candidate for the board at a meeting where the

election is to be held; provided however, that if the election process allows candidates to be

nominated in advance of the meeting, the association is not required to allow nominations at the

meeting. An election is not required unless more candidates are nominated than vacancies exist. If

an election is not required because there are either an equal number or fewer qualified candidates

than vacancies exist, and if nominations from the floor are not required pursuant to this section or

the bylaws, write-in nominations are not permitted and such qualified candidates shall commence

service on the board of directors, regardless of whether a quorum is attained at the annual meeting.

Except as otherwise provided in the governing documents, boards of directors must be elected by

a plurality of the votes cast by eligible voters.

     (2) If the governing documents permit voting by secret ballot by members who are not in

attendance at a meeting of the members for the election of directors, such ballots must be placed in

an inner envelope with no identifying markings and mailed or delivered to the association in an

outer envelope bearing identifying information reflecting the name of the member, the lot, parcel,

or unit for which the vote is being cast, and the signature of the member casting that ballot. If the

eligibility of the member to vote is confirmed and no other ballot has been submitted for that lot or

parcel, the inner envelope shall be removed from the outer envelope bearing the identification

information, placed with the ballots which were personally cast, and opened when the ballots are

counted. Any vote by ballot received after the closing of the balloting shall not be considered. Any

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challenge to the election process must be commenced within sixty (60) days after the election

results are announced.

     34-36.2-16. Alternative dispute resolution-mediation-nonbinding arbitration.

     (a) The filing of any petition for arbitration or the serving of a demand for presuit mediation

as provided for in this section shall toll the applicable statute of limitations.

     (b) Disputes between an association and a parcel owner regarding use of or changes to the

parcel or the common areas and other covenant enforcement disputes, disputes regarding

amendments to the association documents, disputes regarding meetings of the board and

committees appointed by the board, membership meetings not including election meetings, and

access to the official records of the association shall be the subject of a demand for presuit

mediation served by an aggrieved party before the dispute is filed in court. Presuit mediation

proceedings must be conducted in accordance with the applicable Rhode Island rules of civil

procedure, and these proceedings are privileged and confidential to the same extent as court-

ordered mediation. Disputes subject to presuit mediation under this section shall not include the

collection of any assessment, fine, or other financial obligation, including attorneys' fees and costs,

claimed to be due or any action to enforce a prior mediation settlement agreement between the

parties. Furthermore, in any dispute subject to presuit mediation under this section where

emergency relief is required, a motion for temporary injunctive relief may be filed with the court

without first complying with the presuit mediation requirements of this section. After any issues

regarding emergency or temporary relief are resolved, the court may either refer the parties to a

mediation program administered by the courts or require mediation under this section. An arbitrator

or judge may not consider any information or evidence arising from the presuit mediation

proceeding except in a proceeding to impose sanctions for failure to attend a presuit mediation

session or to enforce a mediated settlement agreement. Persons who are not parties to the dispute

may not attend the presuit mediation conference without the consent of all parties, except for

counsel for the parties and a corporate representative designated by the association. When

mediation is attended by a quorum of the board, such mediation is not a board meeting for purposes

of notice and participation. An aggrieved party shall serve on the responding party a written demand

to participate in presuit mediation in substantially the following form:

     “Offer to participate in presuit mediation

     The alleged aggrieved party, hereby demands that, as the responding party, engage in

mandatory presuit mediation in connection with the following disputes, which by statute are of a

type that are subject to presuit mediation:

     (List specific nature of the dispute or disputes to be mediated and the authority supporting

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a finding of a violation as to each dispute.)

     This demand to resolve the dispute through presuit mediation is required before a lawsuit

can be filed concerning the dispute. Pursuant to the statute, the parties are required to engage in

presuit mediation with a neutral third-party mediator in order to attempt to resolve this dispute

without court action, and the aggrieved party demands that you likewise agree to this process. If

you fail to participate in the mediation process, suit may be brought against you without further

warning.

     The process of mediation involves a supervised negotiation process in which a trained,

neutral third-party mediator meets with both parties and assists them in exploring possible

opportunities for resolving part or all of the dispute. By agreeing to participate in presuit mediation,

you are not bound in any way to change your position. Furthermore, the mediator has no authority

to make any decisions in this matter or to determine who is right or wrong and merely acts as a

facilitator to ensure that each party understands the position of the other party and that all options

for reasonable settlement are fully explored.

     If an agreement is reached, it shall be reduced to writing and becomes a binding and

enforceable commitment of the parties. A resolution of one or more disputes in this fashion avoids

the need to litigate these issues in court. The failure to reach an agreement, or the failure of a party

to participate in the process, results in the mediator declaring an impasse in the mediation, after

which the aggrieved party may proceed to court on all outstanding, unsettled disputes.

     The aggrieved party has selected and hereby lists five (5) certified mediators who we

believe to be neutral and qualified to mediate the dispute. You have the right to select any one of

these mediators. The fact that one party may be familiar with one or more of the listed mediators

does not mean that the mediator cannot act as a neutral and impartial facilitator. Any mediator who

cannot act in this capacity is required ethically to decline to accept engagement. The mediators that

we suggest, and their current hourly rates, are as follows:

     (List the names, addresses, telephone numbers, and hourly rates of the mediators. Other

pertinent information about the background of the mediators may be included as an attachment.)

     You may contact the offices of these mediators to confirm that the listed mediators will be

neutral and will not show any favoritism toward either party. The Rhode Island supreme court can

provide you a list of certified mediators.

     Unless otherwise agreed by the parties, the parties share the costs of presuit mediation

equally, including the fee charged by the mediator.

     34-36.2-17. Compliance.

     Compliance with the provisions of this chapter shall be enforced one year after passage of

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the act.

     34-36.2-18. Severability clause.

     If any provisions of this chapter or its application to any person or circumstance is held

invalid, the invalidity does not affect other provisions or applications of this chapter which can be

given effect without the invalid provision or application, and to this end the provisions of this

chapter are severable.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- HOMEOWNERS ASSOCIATION LAW

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     This act would create the homeowners association law to provide operational procedures

for residential communities subject to the management of a homeowner association.

     This act would take effect upon passage.

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