CHAPTER 828

COMMON INTEREST OWNERSHIP ACT

Table of Contents

Sec. 47-257. Assessments for common expenses. Assessments due to wilful misconduct, failure to comply with standards or gross negligence.

Sec. 47-261b. Rules.

Sec. 47-261h. Solar power generating systems.

Sec. 47-264. Public offering statement. General provisions and requirements.

Sec. 47-271. Escrow of deposits. Use of deposits for construction of improvements. Distribution of interest.


PART III

MANAGEMENT OF COMMON INTEREST COMMUNITIES

Sec. 47-257. Assessments for common expenses. Assessments due to wilful misconduct, failure to comply with standards or gross negligence. (a) Until the association makes a common expense assessment, the declarant shall pay all common expenses. After an assessment has been made by the association, assessments shall be made not less than annually, based on a budget adopted not less than annually by the association.

(b) Except for assessments under subsections (c), (d), (e) and (h) of this section, or as otherwise provided in this chapter, all common expenses shall be assessed against all the units in accordance with the allocations set forth in the declaration pursuant to subsections (a) and (b) of section 47-226. The association may charge interest on any past due assessment or portion thereof at the rate established by the association, not exceeding eighteen per cent per year.

(c) To the extent required by the declaration: (1) Any common expense associated with the maintenance, repair or replacement of a limited common element shall be assessed against the units to which that limited common element is assigned, equally, or in any other proportion the declaration provides; (2) any common expense or portion thereof benefiting fewer than all of the units or their owners may be assessed exclusively against the units benefited; and (3) the costs of insurance shall be assessed in proportion to risk and the costs of utilities shall be assessed in proportion to usage.

(d) Assessments to pay a judgment against the association may be made only against the units in the common interest community at the time the judgment was rendered, in proportion to their common expense liabilities.

(e) If any common expense is caused by the wilful misconduct, failure to comply with a written maintenance standard adopted by the association or gross negligence of any unit owner or tenant or a guest or invitee of a unit owner or tenant, the association may, after notice and hearing, assess the portion of that common expense exceeding any insurance proceeds received by the association under its insurance policy, whether that portion results from the application of a deductible or otherwise, exclusively against that owner's unit.

(f) If common expense liabilities are reallocated, common expense assessments and any installment thereof not yet due shall be recalculated in accordance with the reallocated common expense liabilities.

(g) No unit owner shall be exempt from liability for payment of the common expenses by waiver of the use or enjoyment of any of the common elements or by abandonment of the unit against which the assessments are made.

(h) If any addition, alteration or improvement made by, or at the direction of, a unit owner results in an increase in common expenses, including, but not limited to, any cost of maintenance, repair or insurance, the amount of such increase shall be assessed solely against the unit owned by the unit owner who caused such addition, alteration or improvement to be made.

(P.A. 83-474, S. 58, 96; P.A. 84-472, S. 15, 23; P.A. 09-225, S. 31; P.A. 25-73, S. 9.)

History: P.A. 84-472 amended Subsec. (e) providing “notice and hearing” before assessment and added Subsec. (g) prohibiting a unit owner from exempting himself from liability for payment of the common expenses by waiver of the use or enjoyment of the common elements or by abandonment of the assessed unit, formerly Sec. 47-258(k); P.A. 09-225 amended Subsec. (b) to add “or as otherwise provided in this chapter”, rewrite provisions re interest and delete “common expense” re assessments subject to interest charge, amended Subsec. (c)(2) to substitute “or their owners may” for “shall”, and amended Subsec. (e) to add provisions re common expenses caused by wilful misconduct, failure to comply with a written maintenance standard or gross negligence in excess of insurance proceeds received by association, effective July 1, 2010; P.A. 25-73 added Subsec. (h) re assessment of increased common expenses against a unit owner whose unit improvements caused such increase, and made technical changes throughout.

Sec. 47-261b. Rules. (a) At least ten days before adopting, amending or repealing any rule, the executive board shall give all unit owners notice of (1) The executive board's intention to adopt, amend or repeal a rule and shall include with such notice the text of the proposed rule or amendment, or the text of the rule proposed to be repealed; and (2) the date on which the executive board will act on the proposed rule, amendment or repeal after considering comments from unit owners.

(b) Following adoption, amendment or repeal of a rule, the association shall give all unit owners notice of its action and include with such notice a copy of any new or amended rule.

(c) Subject to the provisions of the declaration, an association may adopt rules to establish and enforce construction and design criteria and aesthetic standards. If an association adopts such rules, the association shall adopt procedures for enforcement of those rules and for approval of construction applications, including a reasonable time within which the association shall act after an application is submitted and the consequences of its failure to act.

(d) A rule regulating display of the flag of the United States shall be consistent with federal law. In addition, the association may not prohibit display, on a unit or on a limited common element adjoining a unit, of the flag of this state, or signs regarding candidates for public or association office or ballot questions, but the association may adopt rules governing the time, place, size, number and manner of those displays.

(e) Unit owners may peacefully assemble on the common elements to consider matters related to the common interest community, but the association may adopt rules governing the time, place and manner of those assemblies.

(f) An association may adopt rules that affect the use of or behavior in units that may be used for residential purposes, only to:

(1) Implement a provision of the declaration;

(2) Regulate any behavior in or occupancy of a unit which violates the declaration or adversely affects the use and enjoyment of other units or the common elements by other unit owners; or

(3) Restrict the leasing of residential units to the extent those rules are reasonably designed to meet underwriting requirements of institutional lenders that regularly make loans secured by first mortgages on units in common interest communities or regularly purchase those mortgages, provided no such restriction shall be enforceable unless notice thereof is recorded on the land records of each town in which any part of the common interest community is located. Such notice shall be indexed by the town clerk in the grantor index of such land records in the name of the association.

(g) An association's internal business operating procedures need not be adopted as rules.

(h) Each rule of the association shall be reasonable.

(P.A. 09-225, S. 34; P.A. 10-186, S. 15, 23; P.A. 22-25, S. 16; P.A. 25-73, S. 11.)

History: P.A. 09-225 effective July 1, 2010; P.A. 10-186 amended Subsec. (a) to substitute “include with such notice the text of the proposed rule or amendment, or the text of the rule proposed to be repealed” for “provide the text of the rule or the proposed change”, made technical and conforming changes in Subsecs. (a) and (b), and amended Subsec. (f)(3) to provide that no restriction shall be enforceable unless notice is recorded on land records and require town clerk to index notice in grantor index in name of association, effective July 1, 2010; P.A. 22-25 added new Subsec. (g) re installation of solar power generating system, redesignated existing Subsecs. (g) and (h) as Subsecs. (h) and (i) and made technical changes; P.A. 25-73 deleted former Subsec. (g) re installation of solar power generating system and redesignated existing Subsecs. (h) and (i) as Subsecs. (g) and (h).

Sec. 47-261h. Solar power generating systems. (a) For purposes of this section, “single-family detached unit” means a building used as a residence in a common interest community, except for a cooperative, as defined in section 47-202, that does not contain units divided by horizontal or vertical boundaries that are comprised by, or are located in, common walls between units.

(b) On and after January 1, 2026, any provision of a declaration or the bylaws of an association that prohibits or unreasonably restricts the installation or use of a solar power generating system on the roof of a unit that is a single-family detached unit, or is otherwise in conflict with the provisions of this section, shall be unenforceable. In any common interest community where a unit is a parcel of land, this section shall apply to any single-family detached unit constructed on such unit. This section shall not apply to any unit that has vertical or horizontal boundaries that are comprised by, or are located in, common walls between units.

(c) A unit owner shall obtain approval to install a solar power generating system under this section by submitting an application to the executive board of the association in a form and manner prescribed by such board. The executive board shall (1) acknowledge, in writing to the unit owner, the receipt of any such application not later than thirty days after such receipt, and (2) process such application in the same manner as an application for an addition, alteration or improvement pursuant to the declaration or bylaws of the association. The executive board shall approve or deny such application or request additional information concerning the proposed installation in writing not later than sixty days after the date of receipt of such application. An application shall be deemed approved sixty days after the date of the executive board's receipt of the application if the executive board has not denied such application or requested additional information in writing. If the executive board requests additional information, the application shall be deemed approved thirty days after the board's receipt of such additional information if the executive board has not denied such application in writing. The executive board shall not unreasonably withhold approval of an application submitted in accordance with this section.

(d) If a unit owner's application to install a solar power generating system is approved or deemed approved by the executive board, the unit owner shall enter into a written agreement with the association, which may be recorded on the land records in every town in which the common interest community is located, that requires the unit owner to:

(1) Comply with the provisions of the declaration or bylaws regarding an addition, alteration or improvement that are applicable to the installation of such solar power generating system;

(2) Engage a registered and insured contractor licensed pursuant to chapter 393 to install the solar power generating system who shall, within fourteen days of the execution of the written agreement, (A) provide a certificate of insurance that demonstrates liability insurance coverage in an amount not less than one million dollars and names the association, the association's manager, if any, and the unit owner as insured parties, (B) provide evidence of workers' compensation insurance as may be required by law, and (C) submit to the association a mechanic's lien waiver in favor of the association for any work performed on behalf of such unit owner concerning the installation of such solar power generating system;

(3) Pay any cost associated with the installation of the solar power generating system, including, but not limited to, increased master policy premiums, attorney's fees incurred by the association, engineering fees, professional fees, permit fees and fees associated with applicable zoning compliance requirements;

(4) Indemnify the association, the unit owners of the association and the association's executive board, officers, directors and manager, as applicable, for (A) any damage or loss caused by the solar power generating system, and (B) any financial obligations concerning the solar power generating system; and

(5) Assume full responsibility for the maintenance, repair and replacement of the roof over the unit owner's unit at the unit owner's sole expense.

(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, an association formed on or before January 1, 2026, may, not later than January 1, 2028, by an affirmative vote of not less than seventy-five per cent of the association's board of directors, opt out of the provisions of said subsections regarding the installation of any solar power generating system. Any association that opts out of the provisions of said subsections shall record on the land records of any municipality in which the real property of such association is located a notice of such affirmative vote opting out of the provisions of said subdivisions not later than thirty days after such vote.

(f) A unit owner that enters into a written agreement pursuant to subsection (d) of this section, or any successive owner of the unit that acquires title to the unit and assumes the duties imposed by such agreement, shall be responsible for:

(1) Any cost to repair damage to the solar power generating system, common elements of the association or any unit in the association resulting from the installation, use, maintenance, repair, removal or replacement of the solar power generating system;

(2) Any cost for the maintenance, repair or replacement of the solar power generating system until such system is removed;

(3) Any cost for the repair or restoration of the roof upon which the solar power generating system was installed after such system is removed;

(4) Any additional common expenses resulting from uninsured losses related to the solar power generating system not covered by any master insurance policy held by the association of unit owners; and

(5) Disclosing to any prospective buyer of the unit (A) the existence of the solar power generating system, (B) the associated responsibilities of the unit owner under this section, (C) the existence of any agreement between the unit owner and the association concerning a solar power generating system, and (D) the requirement that the buyer takes ownership of the solar power generating system, or assumes all of the responsibilities of the unit owner under any lease agreement or other agreement between the unit owner and the owner of the solar power generating system, unless such system is removed prior to the conveyance of the unit.

(g) A solar power generating system installed pursuant to this section shall meet all applicable health and safety standards and requirements under any state or federal law or local ordinance.

(h) An association may:

(1) Install a solar power generating system on any common elements of the association for use by the unit owners and develop appropriate rules for such use;

(2) Require that a unit owner remove any solar power generating system installed by the unit owner prior to the unit owner's sale of the unit unless the buyer of the unit agrees to (A) take ownership of the solar power generating system, or assumes all of the responsibilities of the unit owner under any lease agreement or other agreement between the unit owner and the owner of the solar power generating system, (B) assume responsibility for the maintenance, repair and replacement of the roof over the unit owner's unit at the unit owner's sole expense, and (C) assume and be bound by any agreement between the unit owner and the association that indemnifies the association, the unit owners of the association and the association's executive board, officers, directors and manager, as applicable, for any damage or losses caused by the solar power generating system; and

(3) Assess a unit owner for any uninsured portion of a loss associated with a solar power generating system, whether resulting from a deductible or otherwise, regardless of whether the association submits an insurance claim.

(i) In any action by an association seeking to enforce compliance with this section, the prevailing party shall be awarded reasonable attorney's fees.

(P.A. 25-73, S. 10.)

History: P.A. 25-73 effective January 1, 2026.

PART IV

PROTECTION OF PURCHASERS

Sec. 47-264. Public offering statement. General provisions and requirements. (a) Except as provided in subsection (b) of this section, a public offering statement shall contain or fully and accurately disclose:

(1) The name and principal address of the declarant and of the common interest community, and a statement that the common interest community is either a condominium, cooperative or planned community;

(2) A general description of the common interest community, including to the extent known, the types, number and declarant's schedule of commencement and completion of construction of buildings and amenities that the declarant anticipates including in the common interest community;

(3) The number of units in the common interest community;

(4) Copies of the declaration, including any surveys and plans, and any other recorded covenants, conditions, restrictions and reservations created by the declarant affecting the common interest community; the bylaws, and any rules or regulations of the association; any deeds, contracts and leases to be signed by or delivered to purchasers at closing, and copies of and a brief narrative description of any contracts or leases that will or may be subject to cancellation by the association under section 47-247;

(5) A projected budget for the association, either within or as an exhibit to the public offering statement, for one year after the date of the first conveyance to a purchaser, and thereafter the current budget of the association, a statement of who prepared the budget, and a statement of the budget's assumptions concerning occupancy and inflation factors. The budget shall include, without limitation: (A) A statement of the amount, or a statement that there is no amount, included in the budget as a reserve for repairs and replacement; (B) a statement of any other reserves; (C) the projected common expense assessment by category of expenditures for the association; and (D) the projected monthly common expense assessment for each type of unit;

(6) Any services not reflected in the budget that the declarant provides, or expenses that he pays and which he expects may become at any subsequent time a common expense of the association and the projected common expense assessment attributable to each of those services or expenses for the association and for each type of unit;

(7) Any initial or special fee due from the purchaser at closing, together with a description of the purpose and method of calculating the fee;

(8) A brief narrative description of any liens, defects or encumbrances on or affecting the title to the common interest community not otherwise disclosed under subdivision (4) of this subsection;

(9) A description of any financing offered or arranged by the declarant;

(10) The terms and significant limitations of any warranties provided by the declarant, including statutory warranties and limitations on the enforcement thereof or on damages;

(11) A statement that: (A) Within fifteen days after receipt of a public offering statement a purchaser, before conveyance, may cancel any contract for purchase of a unit from a declarant, and (B) if a declarant fails to provide a public offering statement to a purchaser before conveying a unit, that purchaser may recover from the declarant ten per cent of the sales price of the unit plus ten per cent of the share, proportionate to his common expense liability, of any indebtedness of the association secured by security interests encumbering the common interest community;

(12) A statement of any unsatisfied judgments or pending suits against the association, and the status of any pending suits material to the common interest community of which a declarant has actual knowledge;

(13) A statement that any deposit made in connection with the purchase of a unit will be (A) held in an escrow account until closing and will be returned to the purchaser if the purchaser cancels the contract pursuant to section 47-269, together with the name and address of the escrow agent, or (B) withdrawn and used for authorized purposes pursuant to section 47-271;

(14) Any restraints on alienation of any portion of the common interest community and any restrictions (A) on use, occupancy and alienation of the units, and (B) on the amount for which a unit may be sold or on the amount that may be received by a unit owner on sale, condemnation or casualty loss to the unit or to the common interest community, or on termination of the common interest community;

(15) A description of the insurance coverage provided for the benefit of unit owners;

(16) Any current or expected fees or charges to be paid by unit owners for the use of the common elements and other facilities related to the common interest community;

(17) The extent to which financial arrangements have been provided for completion of all improvements that the declarant is obligated to build pursuant to section 47-280;

(18) A brief narrative description of any zoning and other land use requirements affecting the common interest community;

(19) All unusual and material circumstances, features and characteristics of the common interest community and the units;

(20) In a cooperative, (A) either a statement that the unit owners will be entitled, for federal, state and local income tax purposes, to a pass-through of deductions for payments made by the association for real property taxes and interest paid the holder of a security interest encumbering the cooperative, or a statement that no assurances are made in that regard, and (B) a statement as to the effect on every unit owner if the association fails to pay real property taxes or payments due the holder of a security interest encumbering the cooperative;

(21) A description of any arrangement described in section 47-219a; and

(22) A statement, if it is determined that the residential common interest community, of which the unit is a part, is an establishment subject to the requirements of sections 22a-134 to 22a-134e, inclusive, and sections 22a-134h and 22a-134i, that summarizes (A) the status of the environmental condition of the common interest community, (B) any investigation or remediation activities, and (C) any environmental use restriction placed or required to be placed on such residential common interest community as a result of such investigation and remediation. The determination under this subdivision shall be based solely upon actual knowledge, a notice on the land records or, if there is no such notice, an inquiry to the Department of Energy and Environmental Protection of whether a Form I, Form II, Form III or Form IV, as defined in section 22a-134, was submitted to the Department of Energy and Environmental Protection for the residential common interest community of which the unit is a part.

(b) A declarant promptly shall amend the public offering statement to report any material change in the information required to be included in the public offering statement.

(P.A. 83-474, S. 65, 96; P.A. 84-472, S. 18, 23; P.A. 09-225, S. 40; Sept. Sp. Sess. P.A. 20-9, S. 5; P.A. 25-146, S. 2.)

History: P.A. 84-472 amended Subsec. (a)(4) by adding “created by the declarant” and amended Subsec. (a)(8) by providing that the description be a “brief narrative” of any liens, defects or encumbrances on or affecting the title “not otherwise disclosed under subdivision (4) of this subsection”; P.A. 09-225 added Subsec. (a)(21) re arrangements described in Sec. 47-219a, effective July 1, 2010; Sept. Sp. Sess. P.A. 20-9 added Subsec. (a)(22) re statement when residential common interest community is subject to requirements of Secs. 22a-134 to 22a-134e and Secs. 22a-134h and 22a-134i, effective October 2, 2020; P.A. 25-146 amended Subsec. (a)(13) to designate existing provisions as Subpara. (A) and add Subpara. (B) re withdraw for authorized purposes, effective July 1, 2025.

Sec. 47-271. Escrow of deposits. Use of deposits for construction of improvements. Distribution of interest. (a) As used in this section, “actual costs” includes, but is not limited to, expenditures for demolition, site clearing, permit fees, impact fees, architectural, engineering and surveying fees, construction, development and design costs of furnishing and equipping the condominium property, but excluding sale and marketing costs.

(b) Any deposit made in connection with the purchase or reservation of a unit from a person required to deliver a public offering statement pursuant to subsection (c) of section 47-263 shall be placed in escrow and held either in this state or in the state where the unit is located in an account designated solely for that purpose by a licensed title insurance company, an attorney, a licensed real estate broker, an independent bonded escrow company or an institution whose accounts are insured by a governmental agency or instrumentality until (1) delivered to the declarant at closing; (2) delivered to the declarant because of the purchaser's default under a contract to purchase the unit; (3) refunded to the purchaser; or (4) used for the construction of improvements, in accordance with the provisions of subsection (c) of this section.

(c) If the contract for the sale of the condominium unit so provides and the purchaser under the purchase contract represents in the purchase contract that such purchaser is an accredited investor as defined in 17 CFR 230.501 et seq., as amended from time to time, at the time the purchaser enters into the contract, the declarant may withdraw escrow funds in excess of one per cent of the purchase price from the escrow account required under subsection (b) of this section when the construction of improvements has commenced. The declarant may withdraw such funds from the escrow account as described in this section for the actual costs incurred by the declarant after termination of the cancellation period, as set forth in section 47-269, for the construction, development and design of the condominium property in which the unit to be sold is located. No part of such funds may be used for salaries, commissions, expenses, real estate licensees or advertising purposes.

(d) A purchase agreement which permits the use of the earnest money deposit in accordance with the provisions of this section shall include the following legend conspicuously printed or stamped in bold type on the first page of the purchase agreement and immediately above the place for the signature of the purchaser: “ANY PAYMENT IN EXCESS OF ONE (1%) PER CENT TOWARDS THE PURCHASE PRICE MADE TO THE DECLARANT PRIOR TO CLOSING PURSUANT TO THE PURCHASE AGREEMENT MAY BE USED FOR ACTUAL COSTS OF CONSTRUCTION, DEVELOPMENT, AND DESIGN, AS DEFINED IN C.G.S. 47-271.”

(e) If such deposit is made in connection with the purchase or reservation of a unit to be occupied by the purchaser and is placed in an interest-bearing escrow account other than an account established and maintained pursuant to section 51-81c, any interest which accrues thereon from the date of such deposit until its disposition pursuant to subdivision (1), (2), (3) or (4) of subsection (b) of this section shall be distributed as follows: (1) If such deposit is delivered to the declarant at closing or refunded to the purchaser, such interest shall be divided equally between the purchaser and the declarant; and (2) if such deposit is delivered to the declarant because of the purchaser's default under a contract to purchase the unit, such interest shall be paid to the declarant.

(f) Any person who procures the wrongful release of any escrow funds to the declarant or to a third party, with intent to defraud the purchaser, shall be guilty of embezzlement and on conviction shall be punished in the manner provided by law.

(P.A. 83-474, S. 72, 96; P.A. 87-358, S. 5; 87-589, S. 55; P.A. 25-146, S. 1.)

History: P.A. 87-358 added Subsec. (b) re distribution of interest if a deposit is made in connection with the purchase or reservation of a unit to be occupied by the purchaser and is placed in interest-bearing escrow account, and relettered former Subsec. (b) as Subsec. (c); P.A. 87-589 amended Subsec. (b) by adding “other than an account established and maintained pursuant to section 51-81c”; P.A. 25-146 added new Subsec. (a) defining “actual costs”, redesignated existing Subsec. (a) as Subsec. (b) and therein added Subdiv. (4) re use of deposit for construction of improvements, added new Subsec. (c) re requirements to use funds in escrow for construction of improvements, added Subsec. (d) re legend required for purchase agreements, redesignated existing Subsecs. (b) and (c) as Subsecs. (e) and (f), and made technical changes, effective July 1, 2025.