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H0528...............................................by REVENUE AND TAXATION CONDOMINIUMS - COMMON AREA - Amends existing law to provide for a reallocation of percentage of ownership interest in a condominium property; when a substantial change has occurred. 01/31 House intro - 1st rdg - to printing 02/01 Rpt prt - to Rev/Tax 02/06 Rpt out - rec d/p - to 2nd rdg 02/07 2nd rdg - to 3rd rdg 02/12 3rd rdg - PASSED - 66-0-4 AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black, Block, Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Clark, Collins, Crow, Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner, Gould, Hadley, Hammond, Harwood, Higgins, Hornbeck, Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader, Martinez, McKague, Meyer, Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali, Schaefer, Sellman, Shepherd, Smith(33), Smith(23), Smylie, Stevenson, Stone, Tilman, Trail, Wood, Young, Mr. Speaker NAYS -- None Absent and excused -- Henbest, Jaquet, Montgomery, Wheeler Floor Sponsor - Smith(23) Title apvd - to Senate 02/13 Senate intro - 1st rdg - to Loc Gov 02/21 Rpt out - rec d/p - to 2nd rdg 02/22 2nd rdg - to 3rd rdg 02/28 3rd rdg - PASSED - 35-0-0 AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson, Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams NAYS -- None Absent and excused -- None Floor Sponsor - Noh Title apvd - to House 03/01 To enrol 03/04 Rpt enrol - Sp signed 03/05 Pres signed 03/06 To Governor 03/11 Governor signed Session Law Chapter 78 Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature Second Regular Session - 2002 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 528 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PERCENTAGE OF OWNERSHIP INTEREST IN A CONDOMINIUM PROPERTY; AMEND- 3 ING SECTION 55-1505, IDAHO CODE, TO PROVIDE FOR A REALLOCATION OF PERCENT- 4 AGE OF OWNERSHIP INTEREST IN A CONDOMINIUM PROPERTY WHEN A SUBSTANTIAL 5 CHANGE HAS OCCURRED AND TO MAKE TECHNICAL CORRECTIONS. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 55-1505, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 55-1505. CONTENTS OF DECLARATION. (1) The declaration shall contain the 10 following: 11 (a) A legal description of the surface of the ground within the project. 12 (b) A legal description of each unit in the project, which description 13 may consist of the identifying number, symbol or name of such unit as 14 shown on the plat. 15 (c) The percentage of ownership interest in the common area which is to 16 be allocated to each unit for purposes of tax assessment under section 17 55-1514, Idaho Code, and for purposes of liability as provided by section 18 55-1515, Idaho Code. Such percentage shall be fixed by taking as a basis 19 the value of each unit in relation to the value of the property as a 20 whole. For said purposes, the percentage so fixed shall be conclusive, 21 subject only to clear and convincing proof of bad faith at the time of and 22 in the making of such allocation or the last prior amendment thereof. If a 23 substantial change is made to the value or size of one (1) or more units 24 as compared with other units, upon petition by a unit owner for 25 reevaluation and allocation of percentage of ownership interest, the allo- 26 cation shall be amended. Reallocation shall not occur more frequently than 27 every three (3) years. If the board of managers fails to act, reallocation 28 may be accomplished by court action. If court action is necessary the pre- 29 vailing party may be awarded attorney's fees and costs for unreasonable 30 pursuit or refusal. 31 (2) The declaration may but need not also contain any of the following: 32 (a) A description of the buildings in the project, stating the number of 33 stories and basements, the number of units and the principal materials of 34 which they are or are to be constructed. 35 (b) A statement of the location of each unit, its approximate area, num- 36 ber of rooms, and immediate common area to which it has access, and any 37 other data for its proper identification. 38 (c) A description of the common areas and facilities. 39 (d) A description of any limited common areas and facilities, if any, 40 stating to which units their use is reserved or the terms of applicable 41 restrictions or limitations. 42 (e) The value of the property and of each unit. 43 (f) A statement of the purposes for which the building and each of the 2 1 units are intended and restricted as to use. 2 (g) Provisions as to the percentage of votes by the condominium owners 3 which shall be determinative of whether to rebuild, repair, restore, or 4 sell the property in the event of damage, taking, or destruction of all or 5 part of the property. 6 (h) Any or all of the provisions hereinafter referred to in section 7 55-1507, Idaho Code, as proper provisions of by-lawsbylaws. 8 (i) Provisions for the management of the project by any management body 9 or bodies; for the voting majorities, quorums, notices, meeting dates, and 10 other rules governing such body or bodies; and for recordation, from time 11 to time, as provided for in the declaration, of certificates of identity 12 of the persons then composing such management body or bodies, which cer- 13 tificates shall be conclusive evidence of the facts recited therein in 14 favor of any person relying thereon in good faith. 15 (j) As to any management body: 16 (1) For the powers thereof, including power to enforce the provi- 17 sions of the declaration; 18 (2) For maintenance by it of fire, casualty, liability, workmen's19 worker's compensation and other insurance and for bonding of the mem- 20 bers of any management body; 21 (3) For provision by it of and payment by it for maintenance, util- 22 ity, gardening and other services; for employment of personnel neces- 23 sary for operation of the project, and legal and accounting services; 24 (4) For purchase by it of materials, supplies and the like and for 25 maintenance and repair of the project; 26 (5) For payment by it of taxes and special assessments which would 27 be a lien upon the entire project or common areas, and for discharge 28 by it of any lien or encumbrance levies against the entire project or 29 common areas; 30 (6) For payment by it for reconstruction of any portion or portions 31 of the project damaged, taken or destroyed; 32 (7) For delegation by it of its powers; 33 (8) For entry by it or its agents into any unit when necessary in 34 connection with any maintenance or construction for which the manage- 35 ment body is responsible; 36 (9) For an irrevocable power of attorney to the management body to 37 sell and convey the entire project for the benefit of all of the 38 owners thereof when partition of the project may be had under section 39 55-1511, Idaho Code, which power shall: (i) be binding upon all of 40 the owners, whether they expressly assume the obligations of the dec- 41 laration or not; (ii) if so provided in the declaration, be exercis- 42 able by less than all (but not less than fifty per centpercent 43 (50%)) of the voting power of the owners in the project; (iii) be 44 exercisable only after recordation of a certificate by those who have 45 the right to exercise such power of attorney that such power of 46 attorney is properly exercisable under the declaration, which certif- 47 icate shall be conclusive evidence of the facts recited therein in 48 favor of any person relying thereon in good faith. 49 (k) Provisions for amendments of such declaration or the by-lawsbylaws, 50 if any, which amendments, if made upon the vote or consent of more than 51 fifty per centpercent (50%) of the voting power of the owners in the 52 project, shall be binding upon every owner and every condominium whether 53 the burdens thereon are increased or decreased thereby, and whether or not 54 the owner of each and every condominium consents thereto. 55 (l) Provisions for independent audit of the accounts of any management 3 1 body. 2 (m) (1) Provisions for assessments to meet authorized expenditures 3 of any management body, and for a method for notice and levy thereof, 4 each condominium to be assessed separately for its share of such 5 expenses in proportion (unless otherwise provided) to its owner's 6 fractional interest in the common areas; 7 (2) For the subordination of the liens securing such assessments to 8 other liens either generally or specifically described. 9 (n) Provisions for the conditions upon which partition of the project may 10 be had pursuant to this act. Such right to partition may be conditioned 11 upon failure of the condominium owners to elect to rebuild within a cer- 12 tain period, specified inadequacy of insurance proceeds, specified damage 13 to the building, a decision of an arbitrator, or upon any other condition. 14 (o) Provisions for restrictions upon the severability of the component 15 interests in the property which comprise a condominium. Such restrictions 16 shall not be deemed conditions repugnant to the interest created nor 17 unlawful restraints on alienation. 18 (p) Such document, agreement or writing pertinent to the project or its 19 financing as may be attached to, incorporated in or made an exhibit to the 20 declaration and/or any by-lawsbylaws. 21 (q) Such other provisions not inconsistent with this act as the owner or 22 owners may deem desirable in order to promote, facilitate or preserve the 23 property or the project or the use, development or administration thereof. 24 (3) Subpart (2) of this section shall not be construed as a limita- 25 tion upon permissible contents and provisions of a declaration.
STATEMENT OF PURPOSE RS ll749C2 This legislation provides an opportunity to condominium unit owners to correct an inequity that occurs when the original plat of a condominium complex changes substantially. When one of the original units is substantially enlarged or improvements substantially increase its value, the improved unit owner should not pay taxes based on obsolete and inaccurate information. This amendment requires the governing board to make adjustments in the percentage of ownership interest upon petition by a unit owner. Unreasonable petition, or unreasonable denial of percentage adjustment, may result in a court declaration which includes court costs and attorney fee. FISCAL IMPACT No fiscal impact Contact Name: Representative Leon Smith Phone: 322-1000 Senator Laird Noh STATEMENT OF PURPOSE/FISCAL NOTE H 528