CB-56-576.1D Common ownership – Use of reserve funds, emergency repaid, social security preamble

FOR the purpose of adding consumer protections for a community’s “social security” better known as reserve funds for future major expenses. The bill closes a loophole that allows the funds to be raided for any purpose. The bill retains the ability to borrow from the reserve funds for either an emergency or a use approved by the community. Any borrowing would have to be repaid within 5 years, giving the board or the council the runway to figure out a financial solution to avoid a special assessment at the end of those 5 years. This bill corrects an amendment drafting error in the 2026 legislative session, where a version of the bill used (III) instead of 3.