2002 Legislation
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HOUSE BILL NO. 528 – Condo/common area/ownrshp percntg


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Daily Data Tracking History

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

Bill Text

  ||||              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
  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
  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-laws bylaws.
  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's
 19             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  cent  percent
 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-laws  bylaws,
 50        if  any,  which  amendments, if made upon the vote or consent of more than
 51        fifty per cent percent (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
  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-laws bylaws.
 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 / Fiscal Impact

                     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

Name:	Representative Leon Smith
Phone:	322-1000
Senator Laird Noh