(a) There shall be recorded simultaneously with the declaration a set of bylaws providing for the self-government of the condominium by an association of all the unit owners. The unit owners' association may be incorporated.
(b) The bylaws shall provide whether or not the unit owners' association shall have an executive board. The executive board, if any, shall, subsequent to the expiration of the period of declarant control specified pursuant to § 42- 1903.02(a), be elected by the unit owners unless the unit owners vote to amend the bylaws to provide otherwise. If there is to be such a board, the bylaws shall specify the powers and responsibilities of the same and the number and terms of its members. The bylaws may delegate to such board, inter alia, any of the powers and responsibilities assigned by this chapter to the unit owners' association. The bylaws shall also specify which, if any, of its powers and responsibilities the unit owners' association or its executive board may delegate to a managing agent.
(c) The bylaws shall provide whether or not there shall be officers in addition to the members of the executive board. If there are to be such additional officers, the bylaws shall specify the powers and responsibilities of the same, the manner of their selection and removal, their number and their terms. the bylaws may delegate to such additional officers, inter alia, any of the powers and responsibilities assigned by this chapter to the unit owners' association.
(d) In any case where an amendment to the declaration is required by subsection (b), (c), or (d) of § 42-1902.12, the person or persons required to execute the same shall also prepare and execute, and record simultaneously with such amendment, an amendment to the bylaws. The amendment to the bylaws shall allocate to the new units votes in the unit owners' association, rights to future surplus funds, and liabilities for future common expenses not specially assessed, on the same bases as were used for such allocations to the units depicted on plats and plans recorded pursuant to subsections (a) and (b) of § 42-1902.14; or shall abolish the votes appertaining to former units and reallocate their rights to future surplus funds, and their liabilities for future common expenses not specially assessed, to the remaining units in proportion to the relative rights and liabilities of the remaining units immediately prior to the amendment.
(e) Repealed.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 301, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(v), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1841.
1973 Ed., § 5-1241.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
Miscellaneous Notes
Sections 2 and 3 of D.C. Law 19-178 provide:
"Sec. 2. (a)(1) Notwithstanding any provision of law to the contrary, the principal officer of the 8th Street Plaza Condominium Association, Inc., ("8th Street Association") for the 8th Street Condominium, located in Square 5956W and Lots 26, 27, 817, 818, and 2001 through 2034 in Square 5956 ("8th Street Condominium") may:
"(A) Through a simple majority of a quorum of its Board of Directors, correct, amend, and restate its condominium instruments, including its bylaws, declaration, and plats and plans ("modified instruments"), to correct any errors or omissions made by the declarant or other person; and
"(B) File the appropriate documents with the Mayor associated with convertible and expandable land ("C & E land") to be added to the 8th Street Condominium.
"(2) Notwithstanding any provision of law to the contrary, the Office of Tax and Revenue shall not require pre-payment of real property taxes and the Office of the Surveyor shall accept the modified instruments, and the C & E land documents or instruments, if any, for filing.
"(b)(1) The modified instruments and any C & E land documents or instruments shall be exempt from any filing fees established by the Mayor for services rendered by the Office of the Surveyor or the Recorder of Deeds.
"(2) The exemptions granted by paragraph (1) of this subsection shall expire one year after the effective date of this act.
"(c)(1) On the date that any modified instrument or C & E land document or instrument is filed with the Mayor, the Office of Tax and Revenue, the Recorder of Deeds, or the Office of the Surveyor, the Office of Tax and Revenue is authorized to reassess or redistribute, in accordance with D.C. Official Code § 47-835, any real property tax related to the 8th Street Condominium that is levied, unpaid, due, or resulting from these documents or instruments as of the date that the document or instrument was filed.
"(2) Any document or instrument filed pursuant to this act shall apply prospectively only for assessment and taxation purposes, and any lot created, discontinued, modified, or adjusted based on such document or instrument shall be effective for assessment and taxation purposes as of the beginning of the half tax year immediately succeeding the date such document or instrument is filed.
"(d) Except as provided in subsection (e) of this section, any lien for unpaid real property taxes or any tax sale outstanding with respect to any lot constituting part of the 8th Street Condominium shall be unimpaired by any document or instrument filed pursuant to this act.
"(e) If a lot is discontinued as a result of a filing made pursuant to this act, any unpaid real property tax for any period preceding the effective date of discontinuance shall be forgiven.
"Sec. 3. Applicability.
"This act shall apply upon the inclusion of its fiscal effect in an approved budget and financial plan, as certified by the Chief Financial Officer to the Budget Director of the Council in a certification published by the Council in the District of Columbia Register."
(a) The condominium instruments may authorize the declarant, or a managing agent or some other person or persons selected or to be selected by the declarant, to appoint and remove some or all of the officers of the unit owners' association or members of its executive board, or both, or to exercise powers and responsibilities otherwise assigned by the condominium instruments and by this chapter to the unit owners' association, the officers, or the executive board. But no amendment to the condominium instruments shall increase the scope of such authorization if there is any unit owner other than the declarant and no such authorization shall be valid after the time set by the condominium instruments or after units to which three-fourths of the undivided interests in the common elements appertain have been conveyed, whichever occurs first. For the purposes of the preceding sentence only, the calculation of the fraction of undivided interest shall be based upon the total undivided interests assigned or to be assigned to all units registered with the Mayor according to § 42-1904.06. The time limit initially set by the condominium instruments shall not exceed 3 years in the case of an expandable condominium or a condominium containing convertible land, or 2 years in the case of any other condominium containing any convertible land, or 2 years in the case of any other condominium. Such period shall commence upon settlement of the first unit to be sold in any portion of the condominium.
(b)(1) If entered into at any time prior to the expiration of the period of declarant control contemplated by subsection (a) of this section, no contract or lease entered into with the declarant or an affiliate of a declarant, other than a lease subject to § 42-1902.10(e), management contract, employment contract, or lease of a recreational or parking area or facility, which is directly or indirectly made by or on behalf of the unit owners' association or the unit owners as a group, shall be entered into for a period in excess of 2 years. Any contract or agreement entered into after March 8, 1991, may be terminated without penalty by the unit owners' association or the executive board of the unit owners' association upon not less than 90 days written notice to the other party.
(2) If entered into at any time prior to the expiration of the period of declarant control contemplated by subsection (a) of this section, any contract, lease or agreement, other than those subject to the provisions of paragraph (1) of this subsection, may be entered into by or on behalf of the unit owners' association, its executive board, or the unit owners as a group, if such contract, lease or agreement is bona fide and is commercially reasonable to the unit owners' association at the time entered into under the circumstances.
(c) If the unit owners' association is not in existence or does not have officers at the time of the creation of the condominium, the declarant shall, until there is such an association with such officers, have the power and the responsibility to act in all instances where this subchapter or the condominium instruments require or permit action by the unit owners' association, its executive board, or any officer or officers.
(d) Notwithstanding subsection (a) of this section, the bylaws shall provide that:
(1) Not later than the time that units to which 25% of the undivided interests in the common elements appertain have been conveyed, the unit owners' association shall cause a special meeting to be held at which not less than 25% of the members of the executive board shall be selected by unit owners other than declarant; and
(2) Not later than the time units to which 50% of the undivided interests in the common elements appertain have been conveyed, the unit owners' association shall cause a special meeting to be held at which not less than 33 1/3% of the members of the executive board shall be selected by unit owners other than declarant.
(e) Repealed.
(f) This section shall be strictly construed to protect the rights of the unit owners.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 302, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(w), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1842.
1973 Ed., § 5-1242.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
Meetings of the unit owners' association shall be held in accordance with the provisions of the condominium instruments at least once each year after the formation of the unit owners' association. The bylaws shall specify an officer who shall, at least 21 days in advance of any annual or regularly scheduled meeting and at least 7 days in advance of any other meeting, send to each unit owner notice of the time, place, and purpose of the meeting. The notice shall be sent by the United States mail to all unit owners of record at the address of their respective units and to any other address that the unit owners have designated to the officer. In the alternative, notice may be hand-delivered by the officer, if the officer certifies in writing that the notice was delivered to the unit owner.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 303, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(x), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1843.
1973 Ed., § 5-1243.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
(a) Unless the condominium instruments otherwise provide, a quorum shall be deemed to be present throughout any meeting of the unit owners' association until adjourned if persons entitled to cast more than the thirty-three and one-third percent of the votes are present at the beginning of such meeting. The bylaws may provide for a larger percentage, or for a smaller percentage not less than 25 percent.
(b) Unless the condominium instruments specify a larger majority, a quorum shall be deemed to be present throughout any meeting of the executive board if persons entitled to cast one half of the votes in that body are present at the beginning of such meeting.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 304, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(y), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1844.
1973 Ed., § 5-1244.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
(a) The bylaws may allocate to each unit depicted on plats and plans that comply with subsections (a) and (b) of § 42-1902.14 a number of votes in the unit owners' association proportionate to the liability for common expenses as established pursuant to § 42-1903.12(c).
(b) Otherwise, the bylaws shall allocate to each such unit an equal number of votes in the unit owners' association, subject to the following exception: Each convertible space so depicted shall be allocated a number of votes in the unit owners' association proportionate to the size of each such space, vis-a-vis the aggregate size of all units so depicted, while the remaining votes in the unit owners' association shall be allocated equally to the other units so depicted.
(c) Since a unit owner may be more than 1 person, if only 1 of such persons is present at a meeting of the unit owners' association, that person shall be entitled to cast the votes appertaining to that unit. But if more than 1 of such persons is present, the vote appertaining to that unit shall be cast only in accordance with their unanimous agreement unless the condominium instruments expressly provide otherwise, and such consent shall be conclusively presumed if any 1 of them purports to cast the votes appertaining to that unit without protest being made forthwith by any of the others to the person presiding over the meeting. Since a person need not be a natural person, the word "person" shall be deemed for the purposes of this subsection to include, without limitation, any natural person having authority to execute deeds on behalf of any person, excluding natural persons, which is, either alone or in conjunction with another person or persons, a unit owner.
(d) Notwithstanding any contrary provisions of the condominium instruments, this subsection establishes the requirements for the validity of proxies. The votes that pertain to any unit may be cast pursuant to a proxy duly executed by or on behalf of the unit owner, or, in a case where the unit owner is more than 1 person, by or on behalf of all those persons. A proxy may be revoked if a unit owner or 1 of the unit owners, in the case of a unit owned by more than 1 person, gives actual notice of revocation to the person who presides over the meeting. A proxy shall be void if the proxy is not dated, if the proxy purports to be revocable without notice, or if the signatures of any person executing the proxy has not been witnessed by a person who shall sign his or her full name and address. A proxy shall terminate automatically upon the final adjournment of the first meeting held on or after the date of the proxy, but shall remain in effect during any recess or temporary adjournment of the meeting.
(e) If 50% or more of the votes in the unit owners' association appertain to 25% or less of the units, then in any case where a majority vote is required by the condominium instruments or by this chapter, the requirement for such a majority shall be deemed to include, in addition to the specified majority of the votes, assent by the unit owners of a like majority of the units.
(f) Notwithstanding anything in this section to the contrary, during any time that the unit owners' association is the owner of any condominium unit, the votes in the unit owners' association that pertain to the condominium unit shall be included in any calculation to determine the existence of a quorum at any meeting of the unit owners' association pursuant to § 42-1903.04, but otherwise shall be deemed to be cast in proportion to the affirmative and negative votes cast by all unit owners other than the unit owners' association at any meeting.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 305, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(z), 38 DCR 261; Mar. 20, 1992, D.C. Law 9-82, § 2(j), 39 DCR 683.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1845.
1973 Ed., § 5-1245.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
For legislative history of D.C. Law 9-82, see Historical and Statutory Notes following § 42-1901.01.
(a) If the condominium instruments provide that any officer or officers must be unit owners, then any such officer who disposes of all of his units in fee or for a term or terms of 6 months or more shall be deemed to have disqualified himself from continuing in office unless the condominium instruments otherwise provide, or unless he acquires or contracts to acquire another unit in the condominium under terms giving him a right of occupancy thereto effective on or before the termination of his right of occupancy under such disposition or dispositions.
(b) If the condominium instruments provide that any officer or officers must be unit owners, then notwithstanding the provisions of § 42-1902.06(1), the term "unit owner" in such context shall, unless the condominium instruments otherwise provide, be deemed to include, without limitation, any director, officer, partner in, or trustee of any person, which is, either alone or in conjunction with another person or persons, a unit owner. Any officer who would not be eligible to serve as such were he not a director, officer, partner in, or trustee of such a person, shall be deemed to have disqualified himself from continuing in office if he ceases to have any such affiliation with that person, or if that person would itself have been deemed to have disqualified itself from continuing in such office under subsection (a) of this section were it a natural person holding such office.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 306, 23 DCR 9532b.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1846.
1973 Ed., § 5-1246.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
(a) Except to the extent otherwise provided by the condominium instruments, all powers and responsibilities with regard to maintenance, repair, renovation, restoration, and replacement of the condominium shall belong: (1) to the unit owners' association in the case of the common elements; and (2) to the individual unit owner in the case of any unit or any part thereof. Each unit owner shall afford to the other unit owners and to the unit owners' association and to any agents or employees of either such access through such unit owner's unit as may be reasonably necessary to enable them to exercise and discharge their respective powers and responsibilities. But to the extent that damage is inflicted on the common elements or any unit through which access is taken, the unit owner causing the same, or the unit owners' association if it caused the same, shall be liable for the prompt repair thereof. Notwithstanding any provision of this section or any provisions of the condominium instruments, the unit owners' association may repair or replace specified unit components using common expense funds, if failure to make the repair or replacement would have a material adverse effect upon the health, safety, or welfare of the unit owners, the common elements, or the income and common expenses of the unit owners' association. The repair or replacement may be at the expense of the unit owners' association or, if a limited number of units are affected, at the expense of the unit owners affected.
(b), (c) Repealed.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 307, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(aa), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1847.
1973 Ed., § 5-1247.
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(j) of Condominium Act of 1976 Technical and Clarifying Temporary Amendment Act of 1991 (D.C. Law 9-38, August 17, 1991, law notification 38 DCR 5805).
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
(a) Except to the extent expressly prohibited by the condominium instruments, and subject to any restrictions and limitations specified herein, the unit owners' association shall have the:
(1) Power to adopt and amend bylaws or rules and regulations;
(2) Power to adopt and amend a budget for revenues, expenditures, and reserves, and collect assessments for common expenses from unit owners;
(3) Power to hire or discharge a managing agent or other employees, agents, or independent contractors;
(4) Power to institute, defend, or intervene in litigation or administrative proceedings in the name of the unit owners' association on behalf of the unit owners' association or 2 or more unit owners on any matter that affects the condominium;
(5) Power to make a contract or incur liability;
(6) Power to regulate the use, maintenance, repair, replacement, or modification of common elements;
(7) Power to cause an additional improvement to be made as a part of the common elements;
(8) Power to acquire, hold, encumber, or convey in the name of the unit owners' association any right, title, or interest to real or personal property;
(9) Power to grant an easement, lease, license, or concession through or over the common elements;
(10) Power to impose on and receive from individual unit owners any payment, fee, or charge for the use, rental, or operation of the common elements or for any service provided to unit owners;
(11) Power to impose a charge for late payment of an assessment and, after notice and an opportunity to be heard, levy a reasonable fine for violation of the condominium instruments or rules and regulations of the unit owners' association;
(12) Power to impose a reasonable charge for the preparation and recordation of an amendment to the condominium instruments, a statement concerning the resale of units required by § 42-1904.11, or a statement of an unpaid assessment;
(13) Power to provide for the indemnification of officers or the executive board of the unit owners' association and maintain liability insurance for directors or officers;
(14) Power to assign the unit owners' association's right to further income, including the right to future income or the right to receive common expense assessments, but only to the extent the condominium instruments expressly so provide;
(15) Power to exercise any other power conferred by the condominium instruments;
(16) Power to exercise any other power that may be exercised in the District of Columbia by a legal entity of the same type as the unit owners' association; and
(17) Power to exercise any other power necessary and proper for the governance or operation of the unit owners' association.
(b) Except to the extent prohibited by the condominium instruments, and subject to any restrictions and limitations specified therein, the executive board of the unit owners' association, if any, and if not, then the unit owners' association itself, shall have the irrevocable power as attorney-in-fact on behalf of all the unit owners and their successors in title to grant easements through the common elements and accept easements benefiting the condominium or any part thereof.
(c) The condominium instruments may not impose any limitation on the power of the unit owners' association to deal with the declarant that is more restrictive than the limitation imposed on the power of the unit owners' association to deal with any other person.
(d) In the performance of duties, an officer or member of the executive board shall exercise the care required of a fiduciary of the unit owners.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 308, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(bb), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1848.
1973 Ed., § 5-1248.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
(a) An action for tort alleging a wrong done: (1) by any agent or employee of the declarant or of the unit owners' association; or (2) in connection with the condition of any portion of the condominium which the declarant or the association has the responsibility to maintain, shall be brought against the declarant or the association, as the case may be. No unit owner shall be precluded from bringing such an action by virtue of ownership of an undivided interest in the common elements or by reason of membership in the association or status as an officer.
(b) Unit owners other than the declarant shall not be liable for torts caused by agents or employees of the declarant within any convertible land or using any easement reserved in the declaration or created by § 42-1902.21 and 42-1902.22.
(c) An action arising from a contract made by or on behalf of the unit owners' association, its executive board, or the unit owners as a group, shall be brought against the association, or against the declarant if the cause of action arose during the exercise by the declarant of control reserved pursuant to § 42-1903.02(a). No unit owner shall be precluded from bringing such an action by reason of membership in the association or status as an officer.
(d) A judgment for money against the unit owners' association shall be a lien against any property owned by the unit owners' association, and against each of the condominium units in proportion to the liability of each unit owner for common expenses as established pursuant to § 42-1903.12(c), but no unit owner shall be otherwise liable on account of a judgment and, after payment by the unit owner of his or her proportionate share, the association shall not assess or have a lien against the unit owner's condominium unit for any portion of the common expenses incurred in connection with the lien. If after payment by a unit owner of a proportionate share, the unit owners' association elects to pay the balance of the judgment from common funds, the unit owners' association shall reimburse the unit owner for the amount the unit owner paid separately. Any judgment shall be satisfied first out of the property of the unit owners' association. The judgment shall be otherwise subject to the provisions of Title 15.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 309, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(cc), 38 DCR 261; Apr. 18, 1996, D.C. Law 11-110, § 48(a), 43 DCR 530.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1849.
1973 Ed., § 5-1249.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
Law 11-110, the "Technical Amendments Act of 1996," was introduced in Council and assigned Bill No. 11-485, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on December 5, 1995 and January 4, 1996 respectively. Signed by the Mayor on January 26, 1996, it was assigned Act No. 11-199 and transmitted to both Houses of Congress for its review. D.C. Law 11-110 became effective on April 18, 1996.
(a) When any insurance policy has been obtained by or on behalf of the unit owners' association, written notice of the procurement thereof and of any subsequent changes therein or termination thereof shall be promptly furnished to each unit owner by the officer required to send notices of meetings of the unit owners' association. Such notices shall be sent in accordance with the provisions of the last sentence of § 42-1903.03.
(b) Commencing not later than the time of the first conveyance of a condominium unit to a person other than a declarant, the unit owners' association shall maintain, to the extent reasonably available:
(1) Property insurance on the common elements insuring against all risks of direct physical loss commonly insured against. The total amount of insurance after application of any deductibles shall not be less than 90% of the replacement cost of the insured property at the time the insurance is purchased and at each renewal date, excluded from property policies; and
(2) Liability insurance, including medical payments insurance, in an amount determined by the executive board but not less than any amount specified in the condominium instruments that covers all occurrences commonly insured against for death, bodily injury, or property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.
(c) If a building contains units that have horizontal boundaries described in the condominium instruments, the insurance maintained under subsection (b) (1) of this section, to the extent reasonably available, shall include the units, but need not include an improvement or betterment installed by unit owners.
(d) If the insurance described in subsections (b) and (c) of this section is not reasonably available, the unit owners' association shall promptly cause notice of the unavailability of insurance to be hand-delivered or sent prepaid by the United States mail to all unit owners. The condominium instruments may require the unit owners' association to carry any other insurance the unit owners' association deems appropriate to protect the unit owners' association or the unit owners.
(e) An insurance policy carried pursuant to subsection (b) of this section shall provide that:
(1) A unit owner is an insured person under the policy with respect to liability that arises out of the unit owner's interest in the common elements or membership in the unit owner's association;
(2) The insurer waives the insurer's right to subrogation under the policy against any unit owner or member of the unit owner's household;
(3) An act or omission by any unit owner, unless acting within the scope of his or her authority on behalf of the unit owners' association, shall not void the policy or be a condition to recovery under the policy;
(4) If at the time of loss under the policy, there is other insurance in the name of a unit owner that covers the same risk covered by the policy, the unit owners' association's policy shall provide primary insurance; and
(5) If the unit owners' association brings suit against a unit owner, or vice versa, with respect to any loss, the insurer shall provide for the defense of the defendant.
(f) Any loss covered by the property policy under subsections (b)(1) and (c) of this section shall be adjusted with the unit owners' association, but the insurance proceeds for the loss shall be payable to any insurance trustee designated to receive payments or otherwise to the unit owners' association, and not to any mortgagee or beneficiary under a deed of trust. The insurance trustee or the unit owners' association shall hold any insurance proceeds in trust for unit owners or lienholders as the unit owners' or lienholders' interests may appear. Subject to the provisions of subsection (i) of this section, the proceeds shall be disbursed first for the repair or restoration of the damaged property. A unit owner or lienholder shall not be entitled to receive any portion of the proceeds unless there is a surplus of proceeds after the property has been completely repaired or restored or the condominium is terminated.
(g) An insurance policy issued to the unit owners' association shall not prevent a unit owner from obtaining insurance for his or her own benefit.
(h) An insurer that has issued an insurance policy under this section shall issue certificates or memoranda of insurance to the unit owners' association and, upon written request, to any unit owner, mortgagee, or beneficiary under a deed of trust. The insurer that issues the policy may not cancel or refuse to renew the policy until 30 days after notice of the proposed cancellation or nonrenewal has been mailed to the unit owners' association, any unit owner, and any mortgagee or beneficiary under the deed of trust to whom a certificate or memorandum of insurance has been issued at their respective last known addresses.
(i) Any portion of the condominium for which insurance is required under this section that is damaged or destroyed shall be repaired or replaced promptly by the unit owners' association unless the condominium is terminated, repair or replacement would be illegal under any health or safety statute, rule, or regulation, or 80% of the unit owners, including every owner of a unit or assigned limited common element which will not be rebuilt, vote not to rebuild. The cost of repair or replacement in excess of insurance proceeds and reserves shall be a common expense. If the entire condominium is not repaired, the insurance proceeds attributable to the damaged common elements shall be used to restore the damaged area to a condition compatible with the remainder of the condominium. The insurance proceeds attributable to the units and limited common elements that are not rebuilt shall be distributed to the owners of those units and the owners of the units to which those limited common elements appertained, or to lienholders, as their interests may appear. The remainder of the proceeds shall be distributed to all the unit owners or lienholders, as their interests may appear, in proportion to the interests in the common elements appertaining to all the units. If the unit owners vote not to rebuild any unit, that unit's allocated interests shall be automatically reallocated upon the vote as if the unit had been condemned under § 42- 1901.06, and the unit owners' association promptly shall prepare, execute, and record an amendment to the condominium instruments reflecting the reallocations. Notwithstanding the provisions of this subsection, § 42- 1902.28 governs the distribution of insurance proceeds if the condominium is terminated.
(j) The bylaws shall specify insurance coverage and limits with respect to any insurance policy that may be required on the common elements and shall indicate who shall be responsible for payment of any deductible amount in connection with the insurance policy.
(k) The provisions of this section may be varied or waived in the case of a condominium all of whose units are restricted to nonresidential use.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 310, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(dd), 38 DCR 261; Apr. 18, 1996, D.C. Law 11-110, § 48(b), 43 DCR 530.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1850.
1973 Ed., § 5-1250.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
For legislative history of D.C. Law 11-110, see Historical and Statutory Notes following § 42-1903.09.
Unless otherwise provided in the condominium instruments, any surplus funds of the unit owners' association that remain after payment of or provision for common expenses and any prepayment of reserves shall be paid to the unit owners in proportion to the unit owners' liabilities for common expenses or credited to the unit owners to reduce the unit owners' future common expense assessments.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 311, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(ee), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1851.
1973 Ed., § 5-1251.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
(a) Except to the extent that the condominium instruments provide otherwise, any common expenses associated with the maintenance, repair, renovation, restoration, or replacement of any limited common element shall be specially assessed against the condominium unit to which that limited common element was assigned at the time such expenses were made or incurred. If the limited common element involved was assigned at that time to more than 1 condominium unit, however, such expenses shall be specially assessed against each such condominium unit equally so that the total of such special assessments equals the total of such expenses, except to the extent that the condominium instruments provide otherwise.
(b) To the extent that the condominium instruments expressly so provide, any other common expenses benefiting less than all of the condominium units, or caused by the conduct of less than all those entitled to occupy the same or by their licensees or invitees, shall be specially assessed against the condominium unit or units involved, in accordance with such reasonable provisions as the condominium instruments may make for such cases.
(c) The amount of any common expense not specially assessed pursuant to subsection (a) or (b) of this section shall, subject to the provisions of subsection (f) of this section, be assessed against the condominium units, including the condominium units owned by the declarant, in accordance with the provisions of the condominium instruments. The bylaws may establish the fraction or percentage of liability for such expenses appertaining to each condominium unit proportionate to either the size or par value of such condominium unit. Otherwise, the bylaws shall allocate to each such condominium unit an equal liability for such expenses, subject to the following exception: Each convertible space shall be allocated a liability for common expenses proportionate to the size of each such space, vis-a-vis the aggregate size of all units, while the remaining liability for common expenses shall be allocated equally to the other units. Such assessments shall be made by the unit owners' association annually, or more often if the condominium instruments so provide. No change in the number of votes in the unit owners' association appertaining to any condominium unit shall enlarge, diminish, or otherwise affect any liabilities arising from assessments made prior to such change.
(d) If the condominium instruments provide for any common expense assessments to be paid in installments, such instruments may further provide that upon default in the payment of any 1 or more of such installments, the balance thereof shall be accelerated, or that the said balance may be accelerated at the option of the unit owners' association, its executive board, or the managing agent.
(e) Unless the condominium instruments provide otherwise, unpaid assessments for common expense and unpaid installments of such assessments shall become past due on the 15th day from the day such assessment or installment thereof first became due and payable, and any past due assessment or installment thereof shall bear interest at the lesser of 10 percent per annum or the maximum rate permitted to be charged in the District of Columbia to natural persons on first mortgage loans at the time such assessment or installment became past due.
(f) Unless the condominium instruments provide otherwise, the declarant may elect to pay all common expenses for a period not to exceed 1 year from the conveyance of the first condominium unit to a purchaser. If the declarant elects, common expenses shall not be assessed against any condominium unit or imposed upon or collected from any unit owner, and the declarant shall pay all the costs including the costs of any contributions to reserve accounts as set forth in the budget of the condominium described in § 42-1904.04.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 312, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(ff), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1852.
1973 Ed., § 5-1252.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
(a) Any assessment levied against a condominium unit in accordance with the provisions of this chapter and any lawful provision of the condominium instruments shall, from the time the assessment becomes due and payable, constitute a lien in favor of the unit owners' association on the condominium unit to which the assessment pertains. If an assessment is payable in installments, the full amount of the assessment shall be a lien from the time the first installment becomes due and payable.
(1) The lien shall be prior to any other lien or encumbrance except:
(A) A lien or encumbrance recorded prior to the recordation of the declaration;
(B) A first mortgage for the benefit of an institutional lender or a 1st deed of trust for the benefit of an institutional lender on the unit recorded before the date on which the assessment sought to be enforced became delinquent; or
(C) A lien for real estate taxes or municipal assessments or charges against the unit.
(2) The lien shall also be prior to a mortgage or deed of trust described in paragraph (1)(B) of this subsection and recorded after March 7, 1991, to the extent of the common expense assessments based on the periodic budget adopted by the unit owners' association which would have become due in the absence of acceleration during the 6 months immediately preceding institution of an action to enforce the lien. The provisions of this subsection shall not affect the priority of mechanics' or materialmen's lien.
(b) The recording of the condominium instruments pursuant to the provisions of this chapter shall constitute record notice of the existence of such lien and no further recordation of any claim of lien for assessment shall be required.
(c)(1) The unit owners' association shall have the power of sale to enforce a lien for an assessment against a condominium unit if an assessment is past due, unless the condominium instruments provide otherwise. Any language contained in the condominium instruments that authorizes specific procedures by which a unit owners' association may recover sums for which subsection (a) of this section creates a lien, shall not be construed to prohibit a unit owners' association from foreclosing on a unit by the power of sale procedures set forth in this section unless the power of sale procedures are specifically and expressly prohibited by the condominium instruments.
(2) A unit owner shall have the right to cure any default in payment of an assessment at any time prior to the foreclosure sale by tendering payment in full of past due assessments, plus any late charge or interest due and reasonable attorney's fees and costs incurred in connection with the enforcement of the lien for the assessment.
(3) The power of sale may be exercised by the executive board on behalf of the unit owners' association, and the executive board shall have the authority to deed a unit sold at a foreclosure sale by the unit owners' association to the purchaser at the sale. The recitals in the deed shall be prima facie evidence of the truth of the statement made in the deed and conclusive evidence in favor of bona fide purchasers for value.
(4) A foreclosure sale shall not be held until 30 days after notice is sent by certified mail to a unit owner at the mailing address of the unit and at any other address designated by the unit owner to the executive board for purpose of notice. A copy of the notice shall be sent to the Mayor or the Mayor's designated agent at least 30 days in advance of the sale. The notice shall specify the amount of any assessment past due and any accrued interest or late charge, as of the date of the notice. The notice shall notify the unit owner that if the past due assessment and accrued interest or late charge are not paid within 30 days after the date the notice is mailed, the executive board shall sell the unit at a public sale at the time, place, and date stated in the notice.
(5) The date of sale shall not be sooner than 31 days from the date the notice is mailed. The executive board shall give public notice of the foreclosure sale by advertisement in at least 1 newspaper of general circulation in the District of Columbia and by any other means the executive board deems necessary and appropriate to give notice of sale. The newspaper advertisement shall appear on at least 3 separate days during the 15-day period prior to the date of the sale.
(6) The proceeds of a sale shall be applied:
(A) To any unpaid assessment with interest or late charges;
(B) To the cost of foreclosure, including but not limited to, reasonable attorney's fees; and
(C) The balance to any person legally entitled to the proceeds.
(d) Unless the condominium instruments provide otherwise, the executive board shall have the power to purchase on behalf of the unit owners' association any unit at any foreclosure sale held on such unit. The executive board may take title to such unit in the name of the unit owners' association and may hold, lease, encumber or convey the same on behalf of the unit owners' association.
(e) The lien for assessments provided herein shall lapse and be of no further effect as to unpaid assessments (or installments thereof) together with interest accrued thereon and late charges, if any, if such lien is not discharged or if foreclosure or other proceedings to enforce the lien have not been instituted within 3 years from the date such assessment (or any installment thereof) become due and payable.
(f) The judgment or decree in an action brought pursuant to this section shall include, without limitation, reimbursement for costs and attorneys' fees.
(g) Nothing in this section shall be construed to prohibit actions at law to recover sums for which subsection (a) of this section creates a lien, maintainable pursuant to § 42-1902.09.
(h) Any unit owner or purchaser of a condominium unit shall be entitled upon request to a recordable statement setting forth the amount of unpaid assessments currently levied against that unit. Such request shall be in writing, directed to the principal officer of the unit owners' association or to such other officer as the condominium instruments may specify. Failure to furnish or make available such a statement within 10 days from the receipt of such request shall extinguish the lien created by subsection (a) of this section as to the condominium unit involved. Such statement shall be binding on the unit owners' association, the executive board, and every unit owner. Payment of a reasonable fee may be required as a prerequisite to the issuance of such a statement if the condominium instruments so provide.
(i) Upon any voluntary transfer of a legal or equitable interest in a condominium unit, except as security for a debt, all unpaid common expense assessments or installments thereof then due and payable from the grantor shall be paid or else the grantee shall become jointly and severally liable with the grantor subject to the provisions of subsection (h) of this section. Upon any involuntary transfer of a legal or equitable interest in a condominium unit, however, the transferee shall not be liable for such assessments or installments thereof as became due and payable prior to his acquisition of such interest. To the extent not collected from the predecessor in title of such transferee, such arrears shall be deemed common expenses, collectible from all unit owners (including such transferee) in proportion to their liabilities for common expenses pursuant to § 42-1903.12(c).
(j) In addition to any other right or power conferred by this section, the executive board shall have the power to suspend the voting rights in the unit owners' association of any unit owner who is in arrears in his payment of a common expense assessment by more than 30 days, and the suspension may remain in effect until the assessment has been paid in full.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 313, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(gg), 38 DCR 261; Mar. 20, 1992, D.C. Law 9-82, § 2(k), 39 DCR 683.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1853.
1973 Ed., § 5-1253.
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(k) of Condominium Act of 1976 Technical and Clarifying Temporary Amendment Act of 1991 (D.C. Law 9-38, August 17, 1991, law notification 38 DCR 5805).
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
For legislative history of D.C. Law 9-82, see Historical and Statutory Notes following § 42-1901.01.
The unit owners' association shall keep books with detailed accounts in chronological order of the unit owners' association's income and expenditures. The books and the vouchers accrediting the entries shall be made available for examination by a unit owner or the unit owner's attorney, accountant, or authorized agent during reasonable hours on business days. The books shall be kept in a manner verifiable upon an audit and shall be subjected to an independent financial review at least once annually. The books shall be subject to an independent audit upon the request of unit owners of units to which at least 33 1/3% of the votes in the unit owners' association appertain or a lower percentage as may be specified in the condominium instruments.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 314, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(hh), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1854.
1973 Ed., § 5-1254.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
If the condominium instruments create any rights of first refusal or other restraints on free alienability of any of the condominium units, such rights and restraints shall be void unless the condominium instruments make provisions for promptly furnishing to any unit owner or purchaser requesting the same a recordable statement certifying to any waiver of, or failure or refusal to exercise, such rights and restraints, in all cases where such waiver, failure, or refusal does in fact occur. Failure or refusal to furnish promptly such a statement in such circumstances in accordance with the provisions of the condominium instruments shall make all such rights and restraints inapplicable to any disposition of a condominium unit in contemplation of which such statement was requested. Any such statement shall be binding on the association of unit owners, its executive board, and every unit owner. Payment of a reasonable fee may be required as a prerequisite to the issuance of such a statement if the condominium instruments so provide.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 315, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(ii), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1855.
1973 Ed., § 5-1255.
Legislative History of Laws
For legislative history of D.C. Law 1-89, see Historical and Statutory Notes following § 42-1901.01.
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
(a) As used in this section, the term "structural defect" means a defect in a component that constitutes any unit or portion of the common elements that reduces the stability or safety of the structure below standards commonly accepted in the real estate market, or restricts the normally intended use of all or part of the structure and which requires repair, renovation, restoration, or replacement. Nothing in this section shall be construed to make the declarant responsible for any items of maintenance relating to the units or common elements.
(b) A declarant shall warrant against structural defects in each of the units for 2 years from the date each unit is first conveyed to a bona fide purchaser, and all of the common elements for 2 years. The 2 years shall begin as to any portion of the common elements whenever the portion has been completed or, if later:
(1) If within any additional land or portion thereof that does not contain a unit, at the time the additional land is added to the condominium;
(2) If within any convertible land or portion thereof that does not contain a unit, at the time the convertible land may no longer be converted;
(3) If within any additional land or convertible land or portion of either that does contain a unit, at the time the first unit therein is first conveyed to a bona fide purchaser; or
(4) If within any other portion of the condominium, at the time the first unit is conveyed to a bona fide purchaser.
(c) A declarant of a conversion condominium may offer the units, common elements, or both in "as is" condition. If the conversion condominium is offered in "as is" condition, the declarant's warranty against structural defects shall apply only to a defect in components installed by the declarant or work done by the declarant unless the declarant gives a more extensive warranty in writing.
(d) Except with respect to a purchaser of a unit that may be used for residential purposes, the warranty against structural defects:
(1) May be excluded or modified by agreement of the parties; and
(2) Is excluded by an expression of disclaimer such as "as is", "with all faults", or other language that in common understanding calls the purchaser's attention to the exclusion of warranties.
(e)(1) Prior to the declarant's first conveyance of a residential unit to a purchaser, the declarant shall post a bond or letter of credit with the Mayor in the amount of 10% of the estimated construction or conversion costs, or shall provide any other form of security the Mayor shall approve to satisfy any costs that arise from the declarant's failure to satisfy the requirements of this section. The other security may include a lien in favor of the Mayor against the declarant's equity in any unsold units, including any non-residential units, in which event the unsold units will be valued, for purposes of computing the declarant's equity, at 90% of the current listed sales price of the units, or if not listed, then the current listed sales price of comparable units in the condominium. The bond, letter of credit, or other security shall be reduced at the declarant's request in pro rata segments (based on the residential unit's percentage interest in the residential portion of the condominium) 2 years after the conveyance of each unit; provided, however, that in no event shall the security be reduced below 50% of the original amount of the security until one year after transfer of control of the residential executive board of the condominium association to purchasing residential unit owners other than the declarant. For purposes of this subsection, "transfer of control" shall have occurred when 51% or more of the residential executive board is composed of residential unit owners other than the declarant, or successor declarant, or the declarant's selections or nominees. At the end of 5 years from the conveyance of the first residential unit to a purchaser, and provided one year has passed following transfer of control by the declarant, the declarant may sell unsold residential units as resale units, in which event no warranty against structural defects in the units under this section shall be required and the bond shall be reduced pro rata as to those unsold units. The bonding requirements pursuant to this subsection and the warranties required under this section are applicable only to residential condominiums or the residential condominium portion of mixed use condominiums or mixed use projects. If residential condominium units are part of a mixed use condominium, the cost of the residential portion of the condominium shall include the residential condominium units' pro rata share of common elements, based on the residential condominium units' percentage interest in the common elements. If a residential condominium is part of a mixed use project, the cost of the residential condominium includes its pro rata share of those portions of the project directly supporting, enclosing or servicing the residential condominium.
(2) If claims for structural defects under this section are pending at the time the bond or other security posted would otherwise no longer be required, then the bond or other security shall be required to be maintained in the amount of the claim, until the claims have been finally resolved and the bond or other security has been made available to satisfy the declarant's responsibilities to the unit owners and association under this section. The bylaws and other condominium documents to be prepared by the declarant shall not restrict or hinder the residential executive board's right to assert claims under this section.
(f) As used in this section, the term "conveyance" shall mean the transfer of title by written instrument.
(g)(1) The Mayor shall issue proposed rules to implement the provisions of this section within 180 days of October 22, 1999. The proposed rules shall be submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution within this 45-day review period, the proposed rules shall be deemed approved.
(2) The Mayor shall report to the Council on an annual basis on the use and effect of this section and the number of condominium units traded each year.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 316, as added Mar. 8, 1991, D.C. Law 8-233, § 2(jj), 38 DCR 261; Mar. 20, 1992, D.C. Law 9-82, § 2(l), 39 DCR 683; Oct. 22, 1999, D.C. Law 13-46, § 2, 46 DCR 6598.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1856.
Effect of Amendments
D.C. Law 13-46 added subsecs. (f) and (g) and rewrote subsec. (e) which formerly provided:
"(e)(1) Prior to the declarant's first conveyance of a residential unit to a purchaser, the declarant shall post a bond or letter of credit with the Mayor in the amount of 10% of the estimated construction or conversion costs, or shall provide any other form of security the Mayor shall approve to satisfy any costs that arise from the declarant's failure to satisfy the requirements of this section. The other security may include a lien in favor of the Mayor against the declarant's equity in any unsold units, including any non-residential units, in which event the unsold units will be valued, for purposes of computing the declarant's equity, at 90% of the current listed sales price of the units, or if not listed, then the current listed sales price of comparable units in the condominium. The bond, letter of credit, or other security shall be reduced at the declarant's request in pro rata segments (based on the residential unit's percentage interest in the residential portion of the condominium) 2 years after the conveyance of each unit; provided, however, that in no event shall the security be reduced below 50% of the original amount of the security until one year after transfer of control of the residential executive board of the condominium association to purchasing residential unit owners other than the declarant. For purposes of this subsection, 'transfer of control' shall have occurred when 51% or more of the residential executive board is composed of residential unit owners other than the declarant, or successor declarant, or the declarant's selections or nominees. At the end of 5 years from the conveyance of the first residential unit to a purchaser, and provided one year has passed following transfer of control by the declarant, the declarant may sell unsold residential units as resale units, in which event no warranty against structural defects in the units under this section shall be required and the bond shall be reduced pro rata as to those unsold units. The bonding requirements pursuant to this subsection and the warranties required under this section are applicable only to residential condominiums or the residential condominium portion of mixed use condominiums or mixed use projects. If residential condominium units are part of a mixed use condominium, the cost of the residential portion of the condominium shall include the residential condominium units' pro rata share of common elements, based on the residential condominium units' percentage interest in the common elements. If a residential condominium is part of a mixed use project, the cost of the residential condominium includes its pro rata share of those portions of the project directly supporting, enclosing or servicing the residential condominium.
"(2) If claims for structural defects under this section are pending at the time the bond or other security posted would otherwise no longer be required, then the bond or other security shall be required to be maintained in the amount of the claim, until the claims have been finally resolved and the bond or other security has been made available to satisfy the declarant's responsibilities to the unit owners and association under this section. The bylaws and other condominium documents to be prepared by the declarant shall not restrict or hinder the residential executive board's right to assert claims under this section."
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2 of Condominium Warranty Bond Release Discretion Clarification Emergency Amendment Act of 2006 (D.C. Act 16-420, July 18, 2006, 53 DCR 6163).
Legislative History of Laws
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
For legislative history of D.C. Law 9-82, see Historical and Statutory Notes following § 42-1901.01.
Law 13-46, the "Condominium Amendment Act of 1999," was introduced in Council and assigned Bill No. 13-151, which was referred to the Committee on Consumer and Regulatory Affairs. The Bill was adopted on first and second readings on June 8, 1999, and July 6, 1999, respectively. Signed by the Mayor on July 23, 1999, it was assigned Act No. 13-123 and transmitted to both Houses of Congress for its review. D.C. Law 13-46 became effective on October 22, 1999.
Delegation of Authority
Delegation of Authority Pursuant to D.C. Law 13-46, the "Condominium Amendment Act of 1999", see Mayor's Order 2002-166, September 27, 2002 (49 DCR 8926).
Miscellaneous Notes
Section 4 of D.C. Law 13-46 provides: "This act shall be applicable to all condominiums registered after January 1, 1999."
A judicial proceeding for breach of any warranty that arises under § 42- 1903.16 shall be commenced within 5 years after the date the warranty period began.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 317, as added Mar. 8, 1991, D.C. Law 8-233, § 2(kk), 38 DCR 261; Mar. 20, 1992, D.C. Law 9-82, § 2(m), 39 DCR 683.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1857.
Legislative History of Laws
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
For legislative history of D.C. Law 9-82, see Historical and Statutory Notes following § 42-1901.01.
(a) If the condominium instruments for a condominium provide that any of the powers described in § 42-1903.08 are to be exercised by or may be delegated to a for-profit or nonprofit corporation or incorporated association that exercises the powers described in § 42-1903.08 or other powers on behalf of 1 or more condominiums or for the benefit of the unit owners of 1 or more condominiums, all provisions of this chapter applicable to unit owners' associations shall apply to the for-profit or nonprofit corporation or unincorporated association, except as modified by this section.
(b) Unless a master association is acting in the capacity of an association described in § 42-1903.04, it may exercise the powers set forth in § 42- 1903.08(a)(2) only to the extent expressly permitted in the condominium instruments of condominiums that are part of the master association or expressly described in the delegations of power from those condominiums to the master association.
(c) If the condominium instruments of any condominium provide that the executive board may delegate certain powers to a master association, the members of the executive board have no liability for the acts or omissions of the master association with respect to the powers following delegation.
(d) The rights or responsibilities of a unit owner with respect to the unit owners' association set forth in §§ 42-1903.02, 42-1903.03, 42- 1903.04, 42-1903.05, and 42-1903.20 shall apply in the conduct of the affairs of a master association only to any person who elects the board of a master association, whether or not the person is otherwise a unit owner within the meaning of this chapter.
(e) Notwithstanding the provisions of § 42-1903.02(a) with respect to the election of the executive board of a unit owners' association by all unit owners after the period of declarant control ends, and regardless of whether a master association is an association described in § 42-1903.01, the certificate of incorporation or other instrument that creates the master association and the condominium instruments of each condominium, the powers of which are assigned by the condominium instruments or delegated to the master association, may provide that the executive board of the master association shall be elected after the period of declarant control in any of the following ways:
(1) All unit owners of all condominiums subject to the master association may elect all members of the executive board;
(2) All members of the executive boards of all condominiums subject to the master association may elect all members of the executive board;
(3) All unit owners of each condominium subject to the master association may elect specified members of the executive board; or
(4) All members of the executive board of each condominium subject to the master association may elect specified members of the executive board.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 318, as added Mar. 8, 1991, D.C. Law 8-233, § 2(ll), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1858.
Legislative History of Laws
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
(a) Any 2 or more condominiums, by agreement of the unit owners as provided in subsection (b) of this section, may be merged or consolidated into a single condominium. Unless the agreement otherwise provides, if 2 or more condominiums merge or consolidate the resultant condominium shall be, for all purposes, the legal successor of all of the preexisting condominiums, and the operations or activities of all unit owners' associations of the preexisting condominiums shall be merged or consolidated into a single unit owners' association. The single unit owners' association shall hold any power, right, obligation, asset, or liability of all preexisting unit owners' associations.
(b) An agreement of 2 or more condominiums to merge or consolidate pursuant to subsection (a) of this section shall be evidenced by an agreement prepared, executed, recorded, and certified by the president of the unit owners' association of each of the preexisting condominiums following approval by owners of units to which are allocated the percentage of votes in each condominium required to terminate the condominium.
(c)(1) A merger or consolidation agreement shall provide for the reallocation of the allocated interests in the new association among the units of the resultant condominium either by stating the reallocations or the formulas upon which the reallocations are based, or by stating the percentage of overall allocated interests of the new condominiums which are allocated to all of the units comprising each of the preexisting condominiums, and providing that the portion of the percentages allocated to each unit formerly comprising a part of the preexisting condominium must be equal to the percentages of allocated interests allocated to that unit by the condominium instruments of the preexisting condominium.
(2) For purposes of this section, the term "allocated interests" shall mean the individual interest in the common elements, the liability for common expenses, and the votes in the unit owners' association that pertain to each unit.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 319, as added Mar. 8, 1991, D.C. Law 8-233, § 2(mm), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1859.
Legislative History of Laws
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
(a) A portion of the common elements may be conveyed or subjected to a security interest by the unit owners' association if persons entitled to cast at least 80% of the votes in the unit owners' association, including 80% of the votes allocated to units not owned by a declarant, or any larger percentage the condominium instruments specify, agree to convey or subject to a security interest. To convey or subject a limited common element to a security interest, all the owners of units to which any limited common element is allocated shall agree. The condominium instruments may specify a smaller percentage if all of the units are restricted exclusively to nonresidential uses. Proceeds of the sale shall be an asset of the unit owners' association.
(b) An agreement to convey or subject common elements to a security interest shall be evidenced by the execution and recordation of the agreement, or ratification of the agreement, in the same manner as a deed, and by the requisite number of unit owners. The agreement shall specify a date after which the agreement shall be void unless recorded before that date.
(c) The unit owners' association, on behalf of the unit owners, may contract to convey or subject common elements to a security interest. The contract shall not be enforceable against the unit owners' association until approved pursuant to subsections (a) and (b) of this section. Upon approval, the unit owners' association shall have any power necessary and appropriate to effect the conveyance or encumbrance of the common elements, including the power to execute a deed or other instrument.
(d) Any purported conveyance, encumbrance, judicial sale, or other voluntary transfer of common elements pursuant to this section shall not deprive any unit of the unit's right of access or support.
(e) Unless the condominium instruments otherwise provide, a conveyance or encumbrance of common elements pursuant to this section shall not affect the priority or validity of a preexisting encumbrance.
(Mar. 29, 1977, D.C. Law 1-29, title III, § 320, as added Mar. 8, 1991, D.C. Law 8-233, § 2(nn), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1860.
Legislative History of Laws
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
With respect to a third person that deals with the unit owners' association in the unit owners' association's capacity as a trustee, the existence and proper exercise of trust powers by the unit owners' association, may be assumed without inquiry. A third person shall not be bound to inquire whether the unit owners' association has the power to act as trustee or is properly exercising trust powers. A third person without actual knowledge that the unit owners' association is exceeding or improperly exercising its powers is fully protected in dealing with the unit owners' association as if the unit owners' association possessed and properly executed the powers the unit owners' association purports to exercise. A third person shall not be bound to assure the proper application of trust assets paid or delivered to the unit owners' association in its capacity as trustee.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 321, as added Mar. 8, 1991, D.C. Law 8-233, § 2(oo), 38 DCR 261.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1860.1.
Legislative History of Laws
For legislative history of D.C. Law 8-233, see Historical and Statutory Notes following § 42-1901.07.
