PA Legislature Sends H1582 to Governor Corbett

Feb 8, 2012

February 8, 2012, Harrisburg: Pennsylvania’s legislature gave final approval today to House Bill 1582 which affects community associations located within any Business Improvement District (BID) in the Commonwealth. The Bill alters the billing of BID assessments to community associations. Under the Bill, the value of assessments for all units within the condo association would be aggregated and one bill would be sent to the association, meaning the BID assessment would become a common expense apportioned to each unit owner based upon percentage of ownership in the condo as opposed to assessed value. The association would be responsible for including the BID assessment in each unit owners’ monthly assessment, and for collecting the BID fee along with the monthly assessments. When the Bill was first introduced in May of 2011, CAI’s PA Legislative Action Committee (LAC) objected to various provisions and sought an amendment that would allow the condo association to treat the BID assessment based on the actual assessment of each individual unit and not as a common expense allocated by a percentage of ownership. In addition, the amendment designates that the condo association is merely serving as the collection agent for the BID and that unit owners shall not be liable for delinquent owners who fail to pay their BID assessment. The BID would be responsible for directly pursuing any owners who do not pay. The bill, including CAI’s amended language, was adopted by the House and sent to the Senate where it awaits action.

For the full text of the bill, click here.

The Bill now awaits action by the Governor.

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