AN ACT CONCERNING LIMITATIONS ON THE PROVISION OF GIFTS TO THE EXECUTIVE BOARD MEMBERS OF THE ASSOCIATION OF A COMMON INTEREST COMMUNITY.

HB 5433 revises governance rules for common interest communities (like homeowners associations) by limiting developer control over executive boards. It requires developers to surrender board appointment rights after selling 60% of units or two years, whichever comes first, and mandates that at least one-third of board members be elected by unit owners after one-third of units are sold. The bill also restricts appointed board members (e.g., from government or nonprofits) to no more than one-third of the board and ensures they hold equal authority to elected members. These changes directly affect community associations, developers, and unit owners by shifting decision-making power toward resident-elected leadership. The law takes effect October 1, 2026.