Summary.
The bill amends Law 284 of February 14, 2022, which supersedes Law 31 of June 18, 2010, on the condominium regime. For condominium buildings, it proposes that the allocation addressed in paragraph (a) of item 19 of Article 6 be made in equal shares among all properties or real estate units forming part of the condominium.
Through its amendment to Article 25, the bill would allocate ordinary common expenses for administration and services of general use equally among the units. Ordinary maintenance fees would cover the necessary costs of administration, security, cleaning, and upkeep of gardens, recreational areas, swimming pools, elevators, gyms, event rooms, social areas, and other common property and services of general use. Expenses that can be objectively attributed to particular units could instead be allocated under an applicable technical criterion, provided that the allocation is substantiated and approved under the Law. Floor area, unit value, location within the development, and any other factor unrelated to the common service actually provided could not determine ordinary or common fees. Allocation would follow the principle of equitable contribution, taking account of the effective benefit from the services financed.
Proposed Article 26-A would require extraordinary income to be separately identified in the condominium accounts. This includes special assessments, fines, default interest, surcharges, penalties, rents, concessions, and any income other than ordinary fees. The funds could be used only for the purpose for which they were collected or for another purpose expressly authorized by the Owners’ Assembly (Asamblea de Propietarios). At the close of each fiscal year, the administration would submit a detailed report to the Assembly on their use and remaining balance.
Under proposed Article 26-B, extraordinary funds left uncommitted and unused for their original purpose at fiscal year-end would be credited equally to all units and offset against ordinary fees for the following period. This would not apply to funds earmarked for work or contingencies still pending. The Owners’ Assembly could also reserve the funds for a specified, budgeted extraordinary project with the favorable vote of two thirds (2/3) of all units eligible to vote.
For meetings held through technological or remote communication systems, the bill would protect effective participation by owners and accredited representatives, including speaking, moving proposals, making observations, seeking clarification, and voting. The administration and meeting chair would take reasonable steps to identify participants, maintain communication, and fully record votes. A natural person could represent no more than two (2) owners by proxy at the same meeting. Excess proxies would have no effect on quorum or votes, and the secretary would verify compliance and record it in the minutes. Existing condominiums would bring incompatible bylaws into line within six (6) months after promulgation. The proposed law would take effect the following day. Its provisions would concern owners, administrators, and the maintenance, security, and shared-service sectors serving condominium buildings.
What it proposes.
- Allocation of ordinary common expenses in condominiums.
- Accounting for and use of extraordinary funds.
- Participation and proxy representation at owners’ meetings.
- Amendment of condominium bylaws.
Who it would affect.
- Owners and holders of condominium units.
- Condominium administrations.
- Representatives and officers of owners’ meetings.
Key points.
- In condominium buildings, the allocation addressed by item 19 of Article 6 would be made in equal shares among all units.Art. 1
- Ordinary common expenses for administration and general-use services would be shared equally, except for objectively attributable expenses allocated on a substantiated technical basis.Art. 2
- Extraordinary income would be separately identified in the accounts, and the administration would report its use and balance at the close of each fiscal year.Art. 3
- Uncommitted extraordinary balances would be credited equally against ordinary fees, subject to exceptions for pending work or contingencies and reserves approved by the Assembly.Art. 4
- Remote meetings would safeguard effective participation by owners and accredited representatives and provide for a complete record of voting.Art. 5
- A natural person could represent no more than two (2) owners by proxy at the same meeting; the secretary would verify the limit and excess proxies would be ineffective.Art. 6
- The bill identifies the provisions of Law 284 of February 14, 2022, that it amends and adds.Art. 8
- The proposed law would take effect on the day following its promulgation.Art. 9